Question

TARGET CORPORATION

• Evaluate the company’s overall financial performance,
• In what areas are they doing well and the areas in which it is not
• Discuss the steps that you believe the company should take to be more attractive to shareholders and creditors.

Answer 1

Target is a general merchandise retailer with stores in all 50 U.S. states and the District of Columbia. ​Our tagline is "Expect More. Pay Less." We've been using it since 1994! The Target Corporation also owns Shipt, Roundel, Grand Junction and DermStore.

Target Corporation (TGT) financial analysis and rating

Comparison analysis based on SEC data

Company Name	Target Corporation
Industry (SIC)	5331 - Variety Stores
Latest report	1/31/2020 (filed 3/11/2020)
Revenue	$78,112 million (ranked #3 out of 16 companies in the industry)
Assets	$42,779 million (ranked #3)

comparative analysis of the balance sheet and the income statement of Target Corporation (hereafter – the "Company") for the year 2020 submitted to the U.S. Securities and Exchange Commission (SEC). The primary business activity of the company is Variety Stores (SIC code 5331). During the analysis we have compared the key financial ratios of the company with the average (median) values of those ratios calculated for the specific industry sector and for all industries. The averages are calculated using the data from financial statements for the year 2020 submitted to the SEC through the Electronic Data Gathering, Analysis, and Retrieval system (EDGAR). By comparing each of the eleven key metrics with the median value, we have made a generalized conclusion about the quality of the financial condition of the company. Calculations and summary conclusions are made in a computerized way using software and methods developed by Consulting financial and analytical company Ankon.

As a result of the analysis of the key financial ratios of the company, we have established the following. The financial condition of Target Corporation in 2020 is worse than the financial condition of half of all companies engaged in the activity "Variety Stores"

The average ratios for this type of business activity are higher than the average for all industries. For that reason, in comparison with all businesses, the Company shows a satisfactory result. The financial position of Target Corporation is about the same as the average financial condition of the listed companies that submit financial statements to the U.S. Securities and Exchange Commission.

Corporations can influence and attract shareholder interest by being good corporate citizens, which involves caring for the communities in which they operate. Corporate citizenship also means that directors and executive officers must put shareholders' interests above their own interests.

1. Have audited, or at least reviewed, financials for the prior three years. Validation of your numbers and processes from a quality accounting firm greatly will help your sale and valuation. Most important, the buyer and potential lenders will have confidence in your numbers and company. This will save time, cost and potentially increase available leverage. Three years of review or audit isn't required, but the more years the better.

2. Every dollar you add to profit increases value—so eliminate excess costs. It may seem counterintuitive that you have to reduce costs in order to bring on outside financing, but showing careful financial control—and maximum cash flow—can make your company more attractive to investors. Ideally, you should give yourself at least a year to prepare your company before you seek outside funding. Once you have made the decision to seek investors, you should look to eliminate any unnecessary costs you can. And don't take a gradual approach: You may only get full credit in terms of a higher valuation for lower costs that have been in place for at least nine months.

3.Be sure your stated objectives for the sale match your personal objectives.  In the fundraising process, you are going to be telling your story again and again. Make sure that the story you tell prospective investors why you want to expand your business, what your eventual exit strategy is, and what you want to do after that. If not, potential deal-killing issues can arise further down the closing path.

4.Be sure your stated objectives for the sale match your personal objectives.  In the fundraising process, you are going to be telling your story again and again. Make sure that the story you tell prospective investors why you want to expand your business, what your eventual exit strategy is, and what you want to do after that. If not, potential deal-killing issues can arise further down the closing path.