Compile a report analyzing Target's profitability, liquidity, and solvency. Include a discussion of the four-year data trends and how Target has fared against Walmart during the period.

Income Statement (in millions of dollars) $ 2019 75,356 $ 53,299 22,057 15,723 2,224 2018 71,879 $ 51,125 20,754 14,248 2,194 2017 69,495 $ 48,872 20,623 13,356 2,298 2016 73,785 51,997 21,788 14,665 2,213 (620) 5,530 607 4,923 42 1,602 3,363 4,110 434 3,676 7 746 2.937 $ 4,312 666 3,646 6 718 2,934 $ 4,969 1,004 3,965 68 1,296 2,737 $ $ Revenues Cost of sales Gross profit Selling, general and administrative expenses Depreciation & amortization Other operating expense Operating income Interest expense, net Earnings before income taxes Gain (loss) on discontinued items, net of tax Provision for income taxes Net earnings Target Corporation Balance Sheets (in millions of dollars) Assets Cash and cash equivalents Receivables Inventories Other current assets Total current assets Property and plant, cost Less: accumulated depreciation Net property, plant, & equip. Other assets Total assets 2019 2018 2017 2016 $ 1,556 $ 2,643 $ 2,512 $ 4,046 9,497 1,466 12,519 44,220 (18,687) 25,533 3,238 41,290 $ 8,657 1,264 12,564 43,199 (18,181) 25,018 1,417 38,999 $ 8,309 1,100 11,990 42,071 (17,413) 24,658 783 37,431 $ 8,601 1,483 14,130 41,463 (16,246) 25,217 915 40,262 $ $ 8,677 $ 4,254 270 Liabilities and Shareholders' Equity Accounts payable Accrued liabilities Other current liabilities Total current liabilities Long-term debt Other long-term liabilities Total long term liabilities Total liabilities 9,761 $ 4,201 1,052 15,014 10,223 4.756 14.979 29,993 13,201 11,317 2.772 14,089 27,290 7,252 $ 3,737 1.719 12,708 11,031 2.739 13.770 26,478 7,418 4,236 968 12,622 11,945 2,738 14,683 27,305 Shareholders' Equity Common stock Capital in excess of par value Retained earnings Other comprehensive income Total shareholders' equity Total liabilities & shareholders' equity Cash Flow Data Cash flow from operations Fixed asset purchases Cash dividends 43 6,042 6,017 (805) 11,297 41,290 $ 45 5,858 6,553 (747) 11,709 38,999 $ 46 5,661 5,884 (638) 10,953 37,431 $ 50 5,348 8,188 (629 12.957 40,262 $ $ 2019 5,973 $ 3,516 1,355 2018 6,923 $ 2,533 1,338 2017 5,329 $ 1,547 2016 5,140 1,438 1,362 1,348 2019 2018 2017 2016 Target Financial Measures Profitability Operating profit margin Net profit margin Asset turnover Financial leverage ratio Return on assets Return on equity 5.5% 5.5% 1.83 3.65 10.0% 0.26 6.0% 5.7% 1.84 3.33 11.1% 0.25 7.2% 5.6% 1.86 3.42 13.3% 0.25 7.5% 6.5% 1.83 3.11 13.7% 0.26 Liquidity Working capital Working capital (current) ratio Inventory turnover Days in inventory Accounts receivable turnover Days in accounts receivable Accounts payable turnover Days in accounts payable Net cash conversion cycle (2,495) 0.83 5.61 65.04 NA NA 7.72 47.28 17.76 (637) 0.95 5.91 61.81 NA NA 8.28 44.06 17.74 (718) 0.94 5.88 62.06 NA NA 9.58 38.09 23.97 1,508 1.12 6.05 60.38 NA NA 9.95 36.70 23.68 Solvency Debt-to-capital ratio Debt-to-equity ratio Earnings coverage Financial leverage index Cash flow adequacy ratio 0.73 2.65 9.47 2.61 1.23 0.70 2.33 6.47 2.27 1.79 0.71 2.42 4.95 1.88 1.84 0.68 2.11 9.11 1.89 1.84 2019 2018 2017 2016 $ Wal-Mart Stores Income Statements (in millions of dollars) Revenues: Net sales Other income-net Total revenues Costs of sales Gross profit Operating expenses Operating income Net interest cost Other (gains) losses Income before income taxes, Total income tax Net income 510,329 $ 4,076 514,405 385,301 129,104 107,147 21,957 2,129 8,368 11,460 4,281 7,179 495,761 $ 4,582 500,343 373,396 126,947 106,510 20,437 2,178 3,136 15,123 4,600 10,523 481,317 $ 478,614 4,556 3,516 485,873 482,130 361,256 360,984 124,617 121,146 101,853 97,041 22,764 24,105 2,267 2,467 20,497 6.204 14,293 21,638 6,558 15,080 2019 2018 2017 2016 $ Wal-Mart Stores Balance Sheets (in millions of dollars) Assets Cash and cash equivalents Receivables Inventories Prepaid expenses and other Total current assets Property and plant, cost Less: accumulated depreciation Net property, plant, & equip. Property under capital lease Less: accumulated amortization Net property under capital leases Goodwill Other assets and deferred charges Total assets 7,722 $ 6,283 44,269 3,623 61,897 185,810 (81,493) 104,317 12,760 (5,682) 7,078 31,181 14,822 219,295 $ 6,756 $ 5,614 43,783 3,511 59,664 185,154 (77,479) 107,675 12,703 (5,560) 7,143 18,242 11,798 204,522 $ 6,867 $ 8,705 5,835 5,624 43,046 44,469 1.941 1,441 57,689 60,239 179,492 176,958 171.782) (66.787) 107,710 110,171 11,637 11,096 (5.169) (4.751) 6,468 6,345 17,037 16,695 9,921 6,131 198,625 $ 199,581 $ Liabilities and Shareholders' Equity Current liabilities: Short-term borrowings Accounts payable Accrued liabilities Accrued income taxes Long-term debt due within one year Other current liabilities Total current liabilities Long-term debt Long-term obligations under capital leases Deferred income taxes and other Other long-term liabilities Total long-term liabilities Shareholders' Equity Common stock Capital in excess of par value Retained earnings Other accumulated comprehensive income Walmart shareholders' equity Noncontrolling equity interest Total shareholders' equity Total liabilities & shareholders' equity 5,225 $ 47,060 22, 159 428 1,876 729 77,477 43,520 6,683 11,981 5,257 46,092 22,122 645 3,738 667 78,521 30,045 6,780 8,354 1,099 $ 41,433 20,654 921 2,256 565 66,928 36,015 6,003 9,344 2,708 38,487 19,607 521 2,745 551 64,619 38,214 5,816 7,321 62,184 45,179 51,362 51,351 288 2,965 80,785 (11,542) 72,496 7,138 79,634 219,295 $ 295 2,648 85,107 (10,181) 77,869 2,953 80,822 204,522 $ 305 317 2,371 1,805 89,354 90,021 (14,232) (11,597) 77,798 80,546 2,737 3,065 80,535 83,611 198,825 $ 199,581 $ $ Cash Flow Data Cash flow from operations Fixed asset purchases Cash dividends 2019 27,753 $ 10,344 6,102 2018 28,337 $ 10,051 6,124 2017 31,530 $ 10,619 6,216 2016 27,389 11,477 6,294 $ Cash Flow Data Cash flow from operations Fixed asset purchases Cash dividends 2019 27,753 $ 10,344 6,102 2018 28,337 $ 10,051 6,124 2017 31,530 $ 10,619 6,216 2016 27,389 11,477 6,294 Walmart Financial Measures Profitability Operating profit margin Net profit margin Asset turnover Financial leverage ratio Return on equity Return on assets 2019 4.3% 1.4% 2.35 2.75 9.0% 10.0% 2018 4.1% 2.1% 2.45 2.53 13.0% 10.0% 2017 4.7% 2.9% 2.44 2.47 17.7% 11.4% 2016 5.0% 3.1% 2.42 2.39 18.0% 12.1% Liquidity Working capital Working capital (current) ratio Inventory turnover Days in inventory Accounts receivable turnover Days in accounts receivable Accounts payable turnover Days in accounts payable Net cash conversion cycle (15,580) 0.80 8.70 41.94 81.87 4.46 8.19 44.58 1.81 (18,857) 0.76 8.53 42.80 89.12 (9,239) 0.86 8.39 43.49 83.27 4.38 8.72 41.86 6.01 (4,380) 0.93 8.12 44.96 85.73 4.26 9.38 38.92 10.31 4.10 8.10 45.06 1.84 Solvency Debt-to-equity ratio Debt-to-capital ratio Earnings coverage Financial leverage index Cash flow adequacy ratio 1.75 0.64 10.31 0.90 1.69 1.53 0.60 9.38 1.30 1.75 1.47 0.59 10.04 1.55 1.39 0.58 9.77 1.49 1.54 1.87 Income Statement (in millions of dollars) $ 2019 75,356 $ 53,299 22,057 15,723 2,224 2018 71,879 $ 51,125 20,754 14,248 2,194 2017 69,495 $ 48,872 20,623 13,356 2,298 2016 73,785 51,997 21,788 14,665 2,213 (620) 5,530 607 4,923 42 1,602 3,363 4,110 434 3,676 7 746 2.937 $ 4,312 666 3,646 6 718 2,934 $ 4,969 1,004 3,965 68 1,296 2,737 $ $ Revenues Cost of sales Gross profit Selling, general and administrative expenses Depreciation & amortization Other operating expense Operating income Interest expense, net Earnings before income taxes Gain (loss) on discontinued items, net of tax Provision for income taxes Net earnings Target Corporation Balance Sheets (in millions of dollars) Assets Cash and cash equivalents Receivables Inventories Other current assets Total current assets Property and plant, cost Less: accumulated depreciation Net property, plant, & equip. Other assets Total assets 2019 2018 2017 2016 $ 1,556 $ 2,643 $ 2,512 $ 4,046 9,497 1,466 12,519 44,220 (18,687) 25,533 3,238 41,290 $ 8,657 1,264 12,564 43,199 (18,181) 25,018 1,417 38,999 $ 8,309 1,100 11,990 42,071 (17,413) 24,658 783 37,431 $ 8,601 1,483 14,130 41,463 (16,246) 25,217 915 40,262 $ $ 8,677 $ 4,254 270 Liabilities and Shareholders' Equity Accounts payable Accrued liabilities Other current liabilities Total current liabilities Long-term debt Other long-term liabilities Total long term liabilities Total liabilities 9,761 $ 4,201 1,052 15,014 10,223 4.756 14.979 29,993 13,201 11,317 2.772 14,089 27,290 7,252 $ 3,737 1.719 12,708 11,031 2.739 13.770 26,478 7,418 4,236 968 12,622 11,945 2,738 14,683 27,305 Shareholders' Equity Common stock Capital in excess of par value Retained earnings Other comprehensive income Total shareholders' equity Total liabilities & shareholders' equity Cash Flow Data Cash flow from operations Fixed asset purchases Cash dividends 43 6,042 6,017 (805) 11,297 41,290 $ 45 5,858 6,553 (747) 11,709 38,999 $ 46 5,661 5,884 (638) 10,953 37,431 $ 50 5,348 8,188 (629 12.957 40,262 $ $ 2019 5,973 $ 3,516 1,355 2018 6,923 $ 2,533 1,338 2017 5,329 $ 1,547 2016 5,140 1,438 1,362 1,348 2019 2018 2017 2016 Target Financial Measures Profitability Operating profit margin Net profit margin Asset turnover Financial leverage ratio Return on assets Return on equity 5.5% 5.5% 1.83 3.65 10.0% 0.26 6.0% 5.7% 1.84 3.33 11.1% 0.25 7.2% 5.6% 1.86 3.42 13.3% 0.25 7.5% 6.5% 1.83 3.11 13.7% 0.26 Liquidity Working capital Working capital (current) ratio Inventory turnover Days in inventory Accounts receivable turnover Days in accounts receivable Accounts payable turnover Days in accounts payable Net cash conversion cycle (2,495) 0.83 5.61 65.04 NA NA 7.72 47.28 17.76 (637) 0.95 5.91 61.81 NA NA 8.28 44.06 17.74 (718) 0.94 5.88 62.06 NA NA 9.58 38.09 23.97 1,508 1.12 6.05 60.38 NA NA 9.95 36.70 23.68 Solvency Debt-to-capital ratio Debt-to-equity ratio Earnings coverage Financial leverage index Cash flow adequacy ratio 0.73 2.65 9.47 2.61 1.23 0.70 2.33 6.47 2.27 1.79 0.71 2.42 4.95 1.88 1.84 0.68 2.11 9.11 1.89 1.84 2019 2018 2017 2016 $ Wal-Mart Stores Income Statements (in millions of dollars) Revenues: Net sales Other income-net Total revenues Costs of sales Gross profit Operating expenses Operating income Net interest cost Other (gains) losses Income before income taxes, Total income tax Net income 510,329 $ 4,076 514,405 385,301 129,104 107,147 21,957 2,129 8,368 11,460 4,281 7,179 495,761 $ 4,582 500,343 373,396 126,947 106,510 20,437 2,178 3,136 15,123 4,600 10,523 481,317 $ 478,614 4,556 3,516 485,873 482,130 361,256 360,984 124,617 121,146 101,853 97,041 22,764 24,105 2,267 2,467 20,497 6.204 14,293 21,638 6,558 15,080 2019 2018 2017 2016 $ Wal-Mart Stores Balance Sheets (in millions of dollars) Assets Cash and cash equivalents Receivables Inventories Prepaid expenses and other Total current assets Property and plant, cost Less: accumulated depreciation Net property, plant, & equip. Property under capital lease Less: accumulated amortization Net property under capital leases Goodwill Other assets and deferred charges Total assets 7,722 $ 6,283 44,269 3,623 61,897 185,810 (81,493) 104,317 12,760 (5,682) 7,078 31,181 14,822 219,295 $ 6,756 $ 5,614 43,783 3,511 59,664 185,154 (77,479) 107,675 12,703 (5,560) 7,143 18,242 11,798 204,522 $ 6,867 $ 8,705 5,835 5,624 43,046 44,469 1.941 1,441 57,689 60,239 179,492 176,958 171.782) (66.787) 107,710 110,171 11,637 11,096 (5.169) (4.751) 6,468 6,345 17,037 16,695 9,921 6,131 198,625 $ 199,581 $ Liabilities and Shareholders' Equity Current liabilities: Short-term borrowings Accounts payable Accrued liabilities Accrued income taxes Long-term debt due within one year Other current liabilities Total current liabilities Long-term debt Long-term obligations under capital leases Deferred income taxes and other Other long-term liabilities Total long-term liabilities Shareholders' Equity Common stock Capital in excess of par value Retained earnings Other accumulated comprehensive income Walmart shareholders' equity Noncontrolling equity interest Total shareholders' equity Total liabilities & shareholders' equity 5,225 $ 47,060 22, 159 428 1,876 729 77,477 43,520 6,683 11,981 5,257 46,092 22,122 645 3,738 667 78,521 30,045 6,780 8,354 1,099 $ 41,433 20,654 921 2,256 565 66,928 36,015 6,003 9,344 2,708 38,487 19,607 521 2,745 551 64,619 38,214 5,816 7,321 62,184 45,179 51,362 51,351 288 2,965 80,785 (11,542) 72,496 7,138 79,634 219,295 $ 295 2,648 85,107 (10,181) 77,869 2,953 80,822 204,522 $ 305 317 2,371 1,805 89,354 90,021 (14,232) (11,597) 77,798 80,546 2,737 3,065 80,535 83,611 198,825 $ 199,581 $ $ Cash Flow Data Cash flow from operations Fixed asset purchases Cash dividends 2019 27,753 $ 10,344 6,102 2018 28,337 $ 10,051 6,124 2017 31,530 $ 10,619 6,216 2016 27,389 11,477 6,294 $ Cash Flow Data Cash flow from operations Fixed asset purchases Cash dividends 2019 27,753 $ 10,344 6,102 2018 28,337 $ 10,051 6,124 2017 31,530 $ 10,619 6,216 2016 27,389 11,477 6,294 Walmart Financial Measures Profitability Operating profit margin Net profit margin Asset turnover Financial leverage ratio Return on equity Return on assets 2019 4.3% 1.4% 2.35 2.75 9.0% 10.0% 2018 4.1% 2.1% 2.45 2.53 13.0% 10.0% 2017 4.7% 2.9% 2.44 2.47 17.7% 11.4% 2016 5.0% 3.1% 2.42 2.39 18.0% 12.1% Liquidity Working capital Working capital (current) ratio Inventory turnover Days in inventory Accounts receivable turnover Days in accounts receivable Accounts payable turnover Days in accounts payable Net cash conversion cycle (15,580) 0.80 8.70 41.94 81.87 4.46 8.19 44.58 1.81 (18,857) 0.76 8.53 42.80 89.12 (9,239) 0.86 8.39 43.49 83.27 4.38 8.72 41.86 6.01 (4,380) 0.93 8.12 44.96 85.73 4.26 9.38 38.92 10.31 4.10 8.10 45.06 1.84 Solvency Debt-to-equity ratio Debt-to-capital ratio Earnings coverage Financial leverage index Cash flow adequacy ratio 1.75 0.64 10.31 0.90 1.69 1.53 0.60 9.38 1.30 1.75 1.47 0.59 10.04 1.55 1.39 0.58 9.77 1.49 1.54 1.87