Target versus Wal-Mart
Depreciation differences and financial statement analysis.
Target Corporation is a general merchandise retailer. Its Target and Supertarget stores are part of
the upscale discount chain.
Wal-Mart Stores, Inc. operates retail stores in various retailing format in all 50 states in the
United States. The company’s merchandising operations serve its customers primarily through
the operation of three segments: the Wal-Mart stores segment includes its discount stores,
Supercenters, and Neighborhood Markets in the United States; the Sam’s Club segment includes
the warehouse membership clubs in the United States; the international segment includes all of
its operations in Argentina, Brazil, Canada, China, Japan, Germany, Korea, Mexico, Puerto Rico,
and the United Kingdom.
Information taken from both firms’ 2003 annual reports to shareholders follows:
CONSOLIDATED RESULTS OF OPERATIONS
(millions, except per share data)
Net credit card revenues
Cost of sales
Selling, general and administrative expense
Credit card expense
Depreciation and amortization
Earnings before income taxes
Provision for income taxes