Task:
Drafting a Financial statement analysis of Target Retail Stores
Can you help me with the questions?
1). What industry is it in?, What are its main products or services, Who are its competitors?
2). Do a three-year horizontal analysis of the income statement and balance sheet of Target Retail Stores.
3). Discuss the importance and meaning of horizontal analysis, Discuss both the positive and negative trends presented in your company.
4). Calculate the current ratio, quick ratio, cash to current liabilities ratio, over a two-year period.
5). Discuss and interpret the ratios that you calculated, Discuss potential liquidity issues based on your calculations of the current and quick ratios, Discuss liquidity issues of competitive companies within the same industry.
6). Are there any factors that could be erroneously influencing the results of the ratios?
7). Based on your analysis would you recommend an individual invest in this company? What strengths do you see? What risks do you see?
8). Would recommend avoiding this company as long as you provide support for your position.