Chapter 11 Essay .odt - Companies take on financial...

This preview shows page 1 - 2 out of 2 pages.

Companies take on financial liabilities with the hopes that it will provide the company with benefits and overall profitability. Taking on too much liabilities, however, could result in a net loss for the industry involved. It is important to weigh the current assets with the current liabilities to determine the profitability of it's liabilities and whether they can be paid back on time. Listed below will be an analyzation of Target's current liabilities and the impact it has on it's industry. Target's 2016 annual report states $12,760 (in millions) attributed to liabilities for the 2015 fiscal year and 12,749 (in millions) for the 2014 fiscal year. While the numbers in liabilities seem to be high, the sales for the years ended January 30, 2015 and January 30, 2016 are 73,785 (in millions) and 69,495 (in millions) respectively. The current amount of sales are much greater than the current and total amount of liabilities, making Target a very alluring candidate for shareholders. The outstanding numbers in sales compared to it's current debt classifies as benefits to Target's corporations.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture