Efficiency Revenue/Employee Income Per Employee 258,824 9,971 Receivables Turnover 69.32 Total Asset Turnover 1.98 Liquidity Current Ratio 0.91 Quick Ratio 0.29 Cash Ratio 0.20 Profitability Gross Margin +25.38 Operating Margin +5.41 Pretax Margin +4.93 Net Margin +3.85 Return on Assets 7.61 Return on Equity 33.55 Return on Total Capital 17.45 Return on Invested Capital 13.45

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What do these ratios tells us about Target.  What impact does this analysis have on your perceptions of Target, both as a customer and as an investor or potential investor.  

Efficiency
Revenue/Employee
Income Per Employee
258,824
9,971
Receivables Turnover
69.32
Total Asset Turnover
1.98
Liquidity
Current Ratio
0.91
Quick Ratio
0.29
Cash Ratio
0.20
Profitability
Gross Margin
+25.38
Operating Margin
+5.41
Pretax Margin
+4.93
Net Margin
+3.85
Return on Assets
7.61
Return on Equity
33.55
Return on Total Capital
17.45
Return on Invested Capital
13.45
Transcribed Image Text:Efficiency Revenue/Employee Income Per Employee 258,824 9,971 Receivables Turnover 69.32 Total Asset Turnover 1.98 Liquidity Current Ratio 0.91 Quick Ratio 0.29 Cash Ratio 0.20 Profitability Gross Margin +25.38 Operating Margin +5.41 Pretax Margin +4.93 Net Margin +3.85 Return on Assets 7.61 Return on Equity 33.55 Return on Total Capital 17.45 Return on Invested Capital 13.45
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