Working Capital and Financial Environment paper
Target Corporation, Wal-Mart Stores, Inc
Working Capital and Financial Environment Paper
The purpose of this paper is to describe the elements of working capital for the most recent year of the two companies that I selected at the beginning of this course. The companies that are selected are: Target and Walmart.
As per the readings for this course, the working capital of any company equals to its current assets minus its current liabilities.
The working capital of a company gives investors the opportunity to see how efficient the company operates.
A positive working capital demonstrates that a company is able to pay off its short term liabilities on time. not being able to pay off its short term liabilities could be seen as a red flag from investors that are considering or are already investing in that company.
Target operates general merchandise stores in the United States, as of March 2007 Target operates 1501 stores.
Target reported total sales for fiscal 2006 of $59,490 million compared to $52,620 in fiscal 2005.
The consumables and commodities division contributed 32% of total sales for fiscal 2006 versus 30% for fiscal 2005. (Target 2006 annual report)
The Electronics, Entertainment, Sporting Goods and Toys divisions contributed 23% of total sales for fiscal 2006. (Target 2006 annual report)
The Apparel and Accessories divisions contributed 22% of total sales for fiscal 2006. (Target 2006 annual report)
The Home Furnishing and Decorative divisions contributed 19% of total sales for fiscal 2006. (Target 2006 annual report)
The balance sheet of Target for its 2006 Annual Financial Statement reports a total assets value of $37,349.000 with total liabilities of ...