Last week you selected Target a publicly traded company and found their annual report. Now that you have their financial information I would like you to perform a ratio analysis on the financial state
The Company here is selected for my discussion topic is TARGET:
Target Corporation operates general merchandise stores in the United States. The company offers household essentials, including pharmacy, beauty, personal care, baby care, cleaning, and paper products; hardlines comprising music, movies, books, computer software, sporting goods, and toys, as well as electronics that comprise video game hardware and software; apparel and accessories consisting of apparel for women, men, boys, girls, toddlers, infants, and newborns; and intimate apparel, jewelry, accessories, and shoes.
An annual report is a financial summary of a company’s activities during the year along with management’s analysis of the company’s current financial position and future. Annual reports are prepared at the end of the financial year for external users to gain financial information about the inner workings of the company and what management plans to do in the future.
A typical annual report includes several different sections that help investors and creditors understand the company more than they would by simply looking at a set of general-purpose financial statements. A standard report includes the following sections:
Letter to Shareholders Financial History and Highlights Management Discussion and Analysis Management’s Report on Financial Statements and on Internal Controls Report of Independent Accountants sometimes called the Auditor’s Report including a section on internal controls Financial Statements including a:Balance Sheet, Income Statement ,Statement of Stockholders’ Equity Cash Flows Statement, Notes to Financial Statements List of Directors and Officers.
Financial statements are written records that convey the business activities and the financial performance of a company. Financial statements are often audited by government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing, or investing purposes. Financial statements include:
Balance sheet
Income statement
Cash flow statement.
KEY TAKEAWAYS
Financial statements are written records that convey the business activities and the financial performance of a company.
The balance sheet provides an overview of assets, liabilities, and stockholders' equity as a snapshot in time.
The income statement primarily focuses on a company’s revenues and expenses during a particular period. Once expenses are subtracted from revenues, the statement produces a company's profit figure called net income.
The cash flow statement (CFS) measures how well a company generates cash to pay its debt obligations, fund its operating expenses, and fund investments.
And for reference I am attaching an annual report and Financial statement Schedule of TARGET. Which is useful for your better understanding.
Annual Report of Target are available at: http://www.annualreports.com/Company/target-corp
Financial statement Schedule of Target are available at: https://www.sec.gov/ix?doc=/Archives/edgar/data/27419/000002741920000008/tgt-20200201.htm#i2240ff3e90b94c9b90ef0a9188b2d860_238
