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Introduction
Target Inc. is an upscale retail discount store that provides high quality and on-trend
merchandise at attractive prices. The company boasts of providing service in a clean, specious
and customer friendly stores. The company is also one of the largest retail stores in the United
States with about 1,839 stores in the United States, 39 distribution centers, 350, 000 employees
and a global presence in countries such as China. The company is committed to providing a one
stop shopping experience to all their customers whom they refer as guest by delivering
differentiated merchandize and outstanding value. Based on their motto, “Expect More, Pay
Les”, the brand has been able to achieve sustainable growth in the market share thus making the
company one of the competitive companies in the retail industry.
Financial ratio analysis of Target Inc
Financial ratio analysis refers to a quantitative analysis of the financial information of a company
contained in the company’s financial statement. The objective of the ratio analysis of a
company’s financial statement is to evaluate the company operational efficiency and its overall
performance within a given period. The financial performance of the company can be evaluated
based on the criteria such as liquidity, solvency, profitability, solvency, and efficiency. Through
ratio analysis, investors are able to understand the current performance of the company and
verify whether the company is an ideal company for investment. It is important to understand
that financial ratio analysis is an important way of assessing the company’s general health before
digging deeper into its financial statement.
Current ratio analysis
A current ratio is a liquidity ratio that measures the company’s ability to meet its short term
financial obligation using its current assets. To gauge the ability of Target Inc. to meet its short
term and long term financial obligation, the current ratio of the company will consider the
current total assets relative to the company’s current total liabilities. To get the current ratio of
Target Inc. the formula below is considered:
Current ratio = Current Assets / Current Liabilities
= 13,624/11,736
= 1.16
Based on the information on the company’s annual report for 2017 financial year, the company’s
current ratio is 1.16, an indication that the company’s assets are greater than its liabilities. It also
means that Target Inc. is able meet its short-term and long term financial obligation if they came
due at this point. A current ratio of less than one is not desirable since its shows that the company
is not in good financial health. However, it does not mean that a company may go bankrupt.

Quick Ratio
A quick ratio is a financial illiquidity ratio and just like current, quick ratio also measures the
company’s ability to meet its short term and long term obligations with its most liquid assets.
The quick ratio concerns the company’s most liquid assets and thus will not include the company
inventory since the inventory may sometimes be considered non-current assets. To calculate the
quick ratios of Ta...