Target Comparative analysis

Fortune 500 List

  • Target: 38th
  • Walmart: 1st
  • Costco: 15th

Ratio Comparison

  • Current Ratio: Target 1.12, Walmart .93, Costco .98
  • Quick Ratio: Target .20, Walmart .24, Costco .40.
  • Inventory Turnover: Target 6.16, Walmart 12.99, Costco 10.69.
  • Gross Profit Margin: Target 29.53%, Walmart 13.32%, Costco 25.12%

Strengths

  • NI is 4.56% of its Sales. Walmart 3.05%, Costco 1.98%
  • Target has improved from its previous 2.77%
  • Capitalizing on its online shopping
  • Higher quality items, better fashion sense
  • Avidly paying off debts. TIE is 9.11

Weaknesses

  • Need a better inventory turnover ratio
  • Low price to earnings ratio. Declined from 18.20 to 11.91
  • Haven't tapped into grocery order pickup, financial services and fuel services

Future

  • Target will continue to increase their sales and have better ratios
  • R&D team
  • Online success

ROA and ROCE

  • Important to investors
  • ROA: Target 8.23%, Walmart 9.36%, Costco 7.10%
  • ROCE: EBIT/(current assets - current liabilities)
  • Target 3.67%, Walmart -5.50%, Costco -10.29
The End.

Credits:

Created with images by JeepersMedia - "Target" • JeepersMedia - "Target" • JeepersMedia - "Target" • JeepersMedia - "Target" • JeepersMedia - "Target" • JeepersMedia - "Target"

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