Target Corporation
Evaluation of
Annual Reports: 2006, 2007
By
Pamela Miley
Axia College
Table of Contents
Introduction 3
Infrastructure 4
Table 1: 5
Table 2: 6
Stock 6
Financial Ratios 6
Table 3: 7
Weighted Average Cost of Capital (WACC) 9
Conclusion 10
Works Cited 11
Introduction
Target Corporation was first incorporated in Minnesota in 1902. They own their corporate headquarters buildings also located in Minneapolis and lease or own additional office space throughout the United States. They also lease 34 office locations in 24 countries that are used for support and sourcing operations.
Target Corporation is one of the top 10 largest retailers in the United States by sales and the second largest in the general retail industry. In fiscal year 2007 they generated $63.3 billion of revenue, in 2006 they generated $59.4 billion in revenue, an increase of approximately 6%. These sales were generated through the sale of apparel, electronics, house wares and various other product categories including food items both perishable and non-perishable items that are found in the Super Target stores. (Wikinvest, 2008). This revenue was generated both through their stores and there online operations.
Target’s main competitors in the retail business, which are known as the “Big Three”, are Wal-Mart and K-mart. Target, unlike the others does not currently have any international retail operations nor does it plan to do any operations overseas in the foreseeable future. The main drawback to taking this position is the lost potential for opportunities in emerging markets such as China, and it exposes Target to the vulnerability of the domestic economy in the United States.
Their ...