Financial Analysis Target's Working Capital Essay

Total Length: 370 words ( 1 double-spaced pages)

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The absolute value represented by the working capital is largely irrelevant for comparison between two different firms because of the different sizes of the firms. Current ratio is the better measure to compare between two different firms. Wal-Mart's current ratios for 2004-2006 were 1.70, 1.69 and 1.62 respectively. Target's current ratio over these three years was inconsistent, and Wal-Mart's declined. Target's was generally the weaker of the two.



Wal-Mart's asset turnover for 2004, 2005 and 2006 respectively was 2.58, 2.49 and 2.

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39 based on the following calculations:



2004: 256,329 / 99,152.5 = 2.58



2005: 281,488 / 112,979.5 = 2.49



2006: 308,945 / 129,170.5 = 2.39



Target's figures showed improvement over the three years in this area, but the figures are much lower than those of Wal-Mart. Thus, even though Wal-Mart's numbers are declining, they are stronger than Target's.



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"Financial Analysis Target's Working Capital", 03 August 2010, Accessed.30 June. 2025,
https://www.aceyourpaper.com/essays/financial-analysis-target-working-capital-9284