Target Corporation's Short and Long Term Financial Condition Analysis (Research Paper Sample)
THE TASK IS TO ANALYZE THE FINANCIAL CONDITION OF TARGET CORPORATION WHICH THE SAMPLE ADEQUATELY ADDRESSESsource..
Target Corporation- Financial Condition
Target Corporation- Financial Condition
Target Corporation is one of the known public traded companies located in the United States. It is athe eighth largest in the US. Its origin is linked to S & p 500 Index and faces competition from two large traders, Amazon and Walmart. The company was established in 1962 but heavily expanded in the 1980s (Target, 2021). Its parent name was accorded in 2000, after which it heavily divested in many store chains from 2004. Target Corporation has attained the crucial target of diversifying into many urban markets regardless of the failure associated with the credit customer data. It also exists among the Fortune 500 companies of the US. It operates 1,844 stores and has different types of supermarkets and hypermarkets (Target, 2021). Target Corporation is known to have many employees due to its diverse roles and financial stability; it has 360 000 employees. The company's success is due to its effectiveness in managing its resources, including financial, physical, and human capital.
Most of the merchandise stores of the company offers food assortments such as frozen items, dairy, dry grocery, and perishables. The owned brands for Target include Wine cube, Room Essentials, Pilowfort, Market pantry, among others. The company's success is linked to its tag line 'expect more, pay less. Following the identified tagline, it ensures satisfaction by providing quality goods at an affordable price. It's managed under Brian Cornel, who has been its CEO since 2014 (Target, 2021). Target’s headquarter is located in Minnesota, Minneapolis. Target depends on different revenues which are generated from other stores and the diverse customer-based it enjoys like many publicly traded organizations. Target also exhausts most of the available opportunities in the food market, such as technologies to boost its performance. The main goal of Target Company is higher financial performance through mobilizing resources. It also offers some of the core financial services, such as credit cards. The company has a robust organizational structure with different departments, which assist in an effective decision-making process. The significant departments which aid the company in the operational processes include distribution, sales, Information technology, and finance departments. It is the identified departments that make the company deliver effectively.
Based on its supply chain, Target Corporation comprises 41 distribution centers in the US. Some of the vendor-supplied items include soda, greeting cards, among others (Target, 2021). The items are distributed to target stores. The company employs digital distribution techniques such as a computerized distribution system, which assists in the systematic distribution process. Its unique distribution enables it to outwit most of the competitors, such as Walmart. The paper probes analysis of the short-term and long-term financial condition of Target Corporation by focusing on cash flow statement, balance sheet, and income statement. The analysis will integrate different financial statements and use graphs to depict and justify the information. Majorly, using the financial statements, especially income statement, is the suitable way to understand the financial position since it provides real-time company data. However, the financial condition of a publicly traded company can be separated into two significant aspects. The short-term aspect integrates the liquidity metrics and the long-term solvency. The analysis will also incorporate a comparative aspect to understand the financial growth rate. Therefore, the analysis will give a clear picture of the company's financial stability and recommendations to enhance its financial status.
Short-term Financial Condition Analysis
Analysis of the short-term condition depends on to what extent a company is able to settle the short-term bills or current liabilities. The short terms bills in the company are settled using the current assets. They may include accounts receivable, short-term investments, and cash. Therefore, it means that whenever Target Company has strong current assets than the current liability, its short-term financial condition is stable. It is more flexible to accommodate the short-term challenges. Liquidity ratios will be utilized to analyze the short-term financial condition of Target Corporation. They determine whether an organization have enough resources in addressing short-term obligations (Target, 2021). The involvement of graphical analysis is also essential in understanding the trend of cash solvency. Therefore, additional insight is gained from
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