Thursday, November 17, 2011

Financial Statement Comparison

Income Statement Comparison:
Target Link to Financial Statements: http://investors.target.com/phoenix.zhtml?c=65828&p=irol-SECText&TEXT=aHR0cDovL2lyLmludC53ZXN0bGF3YnVzaW5lc3MuY29tL2RvY3VtZW50L3YxLzAwMDEwNDc0NjktMTEtMDAyMDMyL3htbA%3d%3d#fa11101_item_8._financial_statements_and_supplementary_data
Target's income statement information for the fiscal quarter ended January 29, 2011 is as follows:
-Total Revenue: $67,390,000,000
-Total Expenses: $64,470,000,000
-Net Income/Earnings: $2,920,000,000
Component Percentage of Total Expenses: 95.7%
Component Percentage of Total Expenses: 4.3%

Hershey's Link to Financial Statements: http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9ODQ3MzR8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1
Hershey's component percentage for their total expenses is 79.2% and 20.8% for net income. Compared to Target's component percentages, Hershey's is much stronger financially. They are spending less of their money on expenses and therefore have a larger net income compared to Target.

Balance Sheet Comparison:
Target's balance sheet for the fiscal quarter ended January 29,2011:
Total Assets: $43,705,000,000
Total Liabilities: $28,218,000,000
Total Equity: $15,487,000,000

Hershey's balance sheet for the fiscal year ended December 31, 2010:
Total Assets: $4,272,732,000
Total Liabilities: $3,370,416,000
Total Equity: $902,316,000

Hershey's is more financially strong because their total equity outweighs their liabilities greatly. This means that they have more money on hand and less that they still owe.

1 comment:

  1. Note in instructions you need to use annual report, not quarter. Also, your discussion on financial strength focuses on equity outweighing liab - it should focus on assets also.

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