topic 4

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School

Grand Canyon University *

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-485

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Finance

Date

Apr 3, 2024

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docx

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2

Uploaded by DoctorThunderTapir32

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Return on Equity (ROE), Profit Margin, and Earnings Per Share (EPS) are key financial ratios that provide insights into a company's financial performance and profitability. ROE is a measure of a company's profitability in relation to shareholders' equity. It is calculated by dividing net income by average shareholders' equity. Profit Margin indicates the percentage of revenue that remains as profit after expenses. It is calculated by dividing net income by revenue. EPS measures the company's profitability on a per-share basis. I chose the company Target to calculate the ratios for the year 2022. ROE = 432% Gross Profit Margin = 24.64% EPS = $6.02 ROE is a way to see how well a company is using its equity to make money. An ROE of 432% is really high and could mean that Target is doing a good job with shareholder equity. A 24.64% margin shows that Target keeps about 24.64 cents from each dollar of sales after paying for the cost of goods sold. If the gross profit margin is in line with what other companies are doing, Target might want to focus on keeping things running smoothly. But if the margin is lower than competitors, Target might need to find ways to cut costs or talk to suppliers about better deals. With an EPS of $6.02, it means the company made $6.02 for each share. Target appears to be performing well based on the provided ratios. The choices the company makes will probably involve finding a balance between keeping up successful strategies, working on areas that need improvement, and telling stakeholders about its financial performance effectively. tgt-20230128 . (2023). App.quotemedia.com. https://app.quotemedia.com/data/downloadFiling? webmasterId=101533&ref=117321591&type=HTML&symbol=TGT&companyName=T arget+Corporation&formType=10-K&dateFiled=2023-03- 08&CK=27419#if1e8c8dd4b04440880a7ed27a0542767_109
References admin. (2020, December 18).  126 illegal immigrants rescued off Libyan coast: UNHCR . India News Stream. https://www.indianewsstream.com/major-stories/126-illegal-immigrants- rescued-off-libyan-coast-unhcr/ Fares, N. A. (2024, January 18).  “Libya is hell”, 126 refugees rescued in the Mediterranean say . Al Jazeera. https://www.aljazeera.com/news/2024/1/18/libya-is-hell-126-refugees- rescued-in-the-mediterranean-say News, M. (2024, January 19).  Desperate 126 Refugees Rescued from Hellish Libya in Mediterranean . Medium. https://magnatesnews.medium.com/desperate-126-refugees- rescued-from-hellish-libya-in-mediterranean-8be56c52feef
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