Using the information from Part I, comment on the following financial elements of Target Corporation:

Intermediate Financial Management (MindTap Course List)
13th Edition
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Author:Eugene F. Brigham, Phillip R. Daves
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Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 1Q: Define each of the following terms: Liquidity ratios: current ratio; quick, or acid test,...
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Using the information from Part I, comment on the following financial elements of Target Corporation:

 

Liquidity Ratios:
Current ratio
Quick ratio
Cash flow liquidity
Average collection period
Days inventory held
Days payable outstanding
Cash conversion cycle
Activity Ratios:
Accounts receivable turnover
Inventory turnover
Payables turnover
Fixed asset turnover
Total asset turnover
Leverage Ratios:
Debt ratio
Long-term debt to total capitalization
Debt to equity
Financial leverage (FL)
Times interest earned
Cash interest coverage
Fixed charge coverage
Cash flow adequacy
Profitability Ratios:
Gross profit margin
Operating profit margin
Net profit margin
Cash flow margin
Return on assets (ROA)
or Return on investment (ROI)
Return on equity (ROE)
Cash return on assets
Market Ratios:
Earnings per share
Price-to-earnings
Dividend payout
Dividend yield
2007
1.6
1.0
0.6
47.8
59.1
58.6
48.3
7.9
6.2
6.2
2.6
1.4
0.7
0.5
1.9
2.9
7.1
10.1
7.1
0.6
33.89%
8.32%
4.50%
6.51%
6.39%
18.61%
9.26%
3.4
16.9
16.02%
0.95%
2006
1.3
0.8
0.5
39.1
57.9
60.9
36.1
9.6
6.3
6.0
2.8
1.6
0.6
0.4
1.4
2.4
7.9
12.5
7.9
0.9
33.77%
8.52%
4.68%
8.17%
7.46%
17.83%
13.02%
3.2
19.2
14.23%
0.74%
Transcribed Image Text:Liquidity Ratios: Current ratio Quick ratio Cash flow liquidity Average collection period Days inventory held Days payable outstanding Cash conversion cycle Activity Ratios: Accounts receivable turnover Inventory turnover Payables turnover Fixed asset turnover Total asset turnover Leverage Ratios: Debt ratio Long-term debt to total capitalization Debt to equity Financial leverage (FL) Times interest earned Cash interest coverage Fixed charge coverage Cash flow adequacy Profitability Ratios: Gross profit margin Operating profit margin Net profit margin Cash flow margin Return on assets (ROA) or Return on investment (ROI) Return on equity (ROE) Cash return on assets Market Ratios: Earnings per share Price-to-earnings Dividend payout Dividend yield 2007 1.6 1.0 0.6 47.8 59.1 58.6 48.3 7.9 6.2 6.2 2.6 1.4 0.7 0.5 1.9 2.9 7.1 10.1 7.1 0.6 33.89% 8.32% 4.50% 6.51% 6.39% 18.61% 9.26% 3.4 16.9 16.02% 0.95% 2006 1.3 0.8 0.5 39.1 57.9 60.9 36.1 9.6 6.3 6.0 2.8 1.6 0.6 0.4 1.4 2.4 7.9 12.5 7.9 0.9 33.77% 8.52% 4.68% 8.17% 7.46% 17.83% 13.02% 3.2 19.2 14.23% 0.74%
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