TARGET%20CORPORATION%20FINANCIAL%20ANALYSIS%20AND%20INTERPRETATION[1]

TARGET%20CORPORATION%20FINANCIAL%20ANALYSIS%20AND%20INTERPRETATION[1]

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TARGET CORPORATION FINANCIAL ANALYSIS AND INTERPRETATION The ability of a business to meet its short-term cash requirements is called liquidity . It is affected by the timing of a company’s cash inflows and outflows along with prospects for future performance. Efficiency refers to how productive a company is in using its assets, and it is usually measured relative to how much revenue is generated from a particular level of assets. They are both important and complementary. Two measures for evaluating a business's short-term liquidity are working capital and the current ratio. Working capital is the dollar amount of a company’s current assets less current liabilities as shown below: Working capital = Current assets - Current liabilities An excess of the current assets over the current liabilities implies that the company is able to pay its current liabilities. If the current liabilities are greater than the current assets, the company may not be able to pay its debts and continue in business. The current ratio is
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This note was uploaded on 08/15/2011 for the course ACCT 111 taught by Professor Sawyers during the Spring '11 term at Virginia College.

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