Question
In: Finance
Following are financial statement numbers and select ratios for Target Corp. for the fiscal year 2016...
Following are financial statement numbers and select ratios for
Target Corp. for the fiscal year 2016 (ending January 28,
2017).
| Current | Forecast Horizon | Terminal Year | ||||
| ($ millions) | 2016 | 2017 | 2018 | 2019 | 2020 | |
| Total revenues | $69,495 | $71,580 | $73,727 | $75,939 | $78,217 | $78,999 |
| Net operating profit after tax (NOPAT) | 3,302 | 3,436 | 3,539 | 3,645 | 3,754 | 3,792 |
| Net operating assets (NOA) | 21,128 | 21,757 | 22,409 | 23,082 | 23,774 | 24,012 |
Forecast assumptions and other financial information for Target
are as follows:
| Revenue growth | 3% |
| Net operating profit margin (NOPM) | 4.8% |
| Net operating asset turnover (NOAT) | 3.29 |
| Terminal growth rate | 1% |
| Discount rate | 7% |
| Shares outstanding in millions | 556.2 |
| Stockholders' equity | $10,953 |
| Net nonoperating obligations (NNO) | $10,175 |
Use the residual operating income (ROPI) model to estimate the
value of Target’s equity, per share at fiscal year-end.
Target Corp. shares closed at $53.82 per share on March 8, 2017,
the date the 10-K was filed with the SEC. How does your valuation
compare with this closing price?
Solutions
jeff jeffy answered 1 year agoRelated Solutions
Following are financial statement numbers and select ratios for Target Corp. for the fiscal year 2016...
Following are financial statement numbers and select ratios for
Target Corp. for the fiscal year 2016 (ending January 28,
2017).
Current
Forecast Horizon
Terminal Year
($
millions)
2016
2017
2018
2019
2020
Total
revenues
$69,495
$71,580
$73,727
$75,939
$78,217
$78,999
Net operating
profit after tax (NOPAT)
3,302
3,436
3,539
3,645
3,754
3,792
Net operating
assets (NOA)
21,128
21,757
22,409
23,082
23,774
24,012
Forecast assumptions and other financial information for Target are
as follows:
Revenue...
17. Following are financial statement numbers and select ratios for American Eagle Outfitters for 2016, the...
17. Following are
financial statement numbers and select ratios for American Eagle
Outfitters for 2016, the year ended January 28, 2017.
Current
Forecast Horizon
Terminal Year
($ thousands)
2016
2017
2018
2019
2020
Sales
3,609,865
3,754,260
3,866,887
3,982,894
4,102,381
4,143,405
Net operating profit after tax
(NOPAT)
207,262
213,993
220,413
227,025
233,836
236,174
Net operating assets (NOA)
825,956
859,098
884,871
911,417
938,760
948,148
Forecast assumptions and other
financial information for AE Outfitters are as follows:
Sales growth 2017
4%
Sales growth...
Financial ratios are relationships between two financial statement numbers and are often used in analyzing and...
Financial ratios are relationships between two financial
statement numbers and are often used in analyzing and describing a
company's performance. Liquidity is a measure of a company’s
ability to pay their short-term obligations as they come due.
Select and define two ratios and explain how they could be used to
describe a company's liquidity.
Berry Corp. has the following balance sheet and income statement data for the fiscal year 2018:...
Berry Corp. has the following balance sheet and income statement
data for the fiscal year 2018:
Cash $ 61,680 Accounts
payable $ 144,118
Receivables $ 57,379 Other
current liab. 2,798
Inventories 14,000 Total
CL $ 146,916
Total CA $133,059 Long-term
debt 391,786
Net fixed assets 1,442,708
Common equity 1,037,065
Total assets $1,575,767 Total
liab. and equity $1,575,767
Sales $378,452
EBIT $225,785
Net income $ 147,102
a. Calculate Current ratio, Basic...
Below are numbers from a balance sheet and income statement. Construct the financial ratios requested below....
Below are numbers from a balance sheet and income statement.
Construct the financial ratios
requested below.
Sales 443555
Operating Costs 326133
Depreciation 10000
Interest Expense 5000
Tax Expense 29408
Cash 1000
Receivables 30000
Inventories 54355
Fixed Assets, Net 50000
Payables 11000
Accrued Expenses 10000
Long-Term Loan 50000
Common Equity 64355
Prepare an income statement and a balance sheet for is company
using the information provided.
Calculate:
1. Current ratio
2. Quick ratio
3. NWC-to-total-Assets (Working capital to assets)
4. Ratio...
Below are numbers from a balance sheet and income statement. Construct the financial ratios requested below....
Below are numbers from a balance sheet and income statement.
Construct the financial ratios
requested below.
Sales 499891
Operating Costs 359935
Depreciation 10000
Interest Expense 5000
Tax Expense 29408
Cash 1000
Receivables 30000
Inventories 59989
Fixed Assets, Net 50000
Payables 11000
Accrued Expenses 10000
Long-Term Loan 50000
Common Equity 69989
6. Interest coverage
7. Net profit margin
8. Sales to total assets (Asset turnover)
9. Return on assets
10. Equity multiplier
11. Return on equity
Select the 10 ratios you deem most important financial ratios for a 3-year period. Based on...
Select the 10 ratios you deem most important financial
ratios for a 3-year period. Based on your analysis of your
ratios
1) What 3 items of important information does the income
statement ratios reveal about the financial performance of the
company?
Ratios
2016
2017
2018
Net Profit Margin (%)
2.32
2.78
2.06
EBITDA Margin (%)
5.90
5.96
5.05
Return on Equity (ROE)
13.30
17.05
12.85
Return on Assets (ROA)
6.51
8.22
6.59
Price-to-Book Value (P/B)
1.88
1.53
1.45
Gross Gearing...
Select the 10 ratios you deem most important financial ratios for a 3-year period. Based on...
Select the 10 ratios you deem most important financial
ratios for a 3-year period. Based on your analysis of your
ratios
Can you identify the major cash flow implications for this
company?
Ratios
2016
2017
2018
Net Profit Margin (%)
2.32
2.78
2.06
EBITDA Margin (%)
5.90
5.96
5.05
Return on Equity (ROE)
13.30
17.05
12.85
Return on Assets (ROA)
6.51
8.22
6.59
Price-to-Book Value (P/B)
1.88
1.53
1.45
Gross Gearing (D/E) (%)
68.21%
42.98%
39.31%
PER
17.39
9.00
11.31...
Select the 10 ratios you deem most important financial ratios for a 3-year period. Based on...
Select the 10 ratios you deem most important financial
ratios for a 3-year period. Based on your analysis of your
ratios
What 3 items of important information does the balance sheet
ratios reveal about the financial position of the company?
Ratios
2016
2017
2018
Net Profit Margin (%)
2.32
2.78
2.06
EBITDA Margin (%)
5.90
5.96
5.05
Return on Equity (ROE)
13.30
17.05
12.85
Return on Assets (ROA)
6.51
8.22
6.59
Price-to-Book Value (P/B)
1.88
1.53
1.45
Gross Gearing (D/E)...
Select the 10 financial ratios for a 3-year period then compare six (6) common ratios between...
Select the 10 financial ratios
for a 3-year period then compare six (6) common ratios between two
other groups.
1) Based on these ratios, which is the
stronger company and why?
Company A
Company B
Company C
Ratio
2016
2017
2018
2016
2017
2018
2016
2017
2018
Profitability ratios
Net Profit Margin (%)
10.73
7.93
9.71
2.32
2.78
2.06
8.53
10.19
10.17
EBIT Margin (%)
16.09
11.63
14.38
5.90
5.96
5.05
12.11
13.70
13.94
ROE (%)
28.43
20.95
26.30
13.30...
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