(Solved): Here you will find the income statements and balance sheets for Sears Holdings (SHLD) and Target ...

Here you will find the income statements and balance sheets for Sears Holdings? (SHLD) and Target Corp? (TGT). Assume that you are a financial manager at Sears and want to compare your?firm's situation with that of Target. Calculate representative ratios for? liquidity, asset management? efficiency, financial leverage? (capital structure), and profitability for both Sears and Target. How would you summarize the financial performance of Sears compared to Target? (its benchmark? firm)?

1.??Liquidity Ratios

 

?Sears' current ratio is ___ times.???(Round to two decimal?places.)

?Target's current ratio is ____ times.???(Round to two decimal?places.)

?Sears' acid-test ratio is _____ times.???(Round to two decimal?places.)

?Target's acid-test ratio is ____ times.???(Round to two decimal? places.)

?Sears' average collection period is _____ days.???(Round to one decimal? place.)

?Target's average collection period is ____ days.???(Round to one decimal? place.)

?Sears' accounts receivable turnover is ____ times.???(Round to one decimal? place.)

?Target's accounts receivable turnover is _____ times.???(Round to one decimal? place.)

?Sears' inventory turnover is _____ times.???(Round to two decimal? places.)

?Target's inventory turnover is _____ times.???(Round to two decimal? places.)

2.??Capital Structure Ratios

 

?Sears' debt ratio is ____?%. ?(Round to one decimal?place.)

?Target's debt ratio is _____?%. ?(Round to one decimal?place.)

?Sears' times interest earned is ____ times.???(Round to two decimal? places.)

?Target's times interest earned is ____ times.???(Round to two decimal? places.)

3.??Asset Management Efficiency Ratios

 

?Sears' total asset turnover is ____ times.???(Round to two decimal? places.)

?Target's total asset turnover is ___ times.???(Round to two decimal? places.)

?Sears' fixed asset turnover is ____ times.???(Round to two decimal? places.)

?Target's fixed asset turnover is ____ times.???(Round to two decimal? places.)

4.??Profitability Ratios

 

?Sears' gross profit margin is ____?%. ?(Round to one decimal? place.)

?Target's gross profit margin is ____?%. ?(Round to one decimal? place.)

?Sears' operating profit margin is ____%. ?(Round to one decimal? place.)

?Target's operating profit margin is ____%. ?(Round to one decimal? place.)

?Sears' net profit margin is _____?%. ?(Round to one decimal? place.)

?Target's net profit margin is ____?%. ?(Round to one decimal? place.)

?Sears' operating return on assets is ____?%. ?(Round to one decimal? place.)

?Target's operating return on assets is ____?%. ?(Round to one decimal? place.)

?Sears' return on equity is ____%. ?(Round to one decimal?place.)

?Target's return on equity is ____?%. ?(Round to one decimal? place.)

 

ick on the icon \( \square \) in order to copy its contents into a spreadsheet.) \begin{tabular}{lrr} \hline Accounts receivable & \( 9,446,000 \) & 866,000 \\ Inventories & \( 6,705,000 \) & \( 8,795,000 \) \\ Other current assets & 473,000 & 458,000 \\ Total current assets & \( \$ 17,488,000 \) & \( \$ 11,416,000 \) \\ Long-term investments & 163,000 & 0 \\ Property, plant, and equipment & \( 25,756,000 \) & \( 8,091,000 \) \\ Other assets & 699,000 & \( 5,835,000 \) \\ Total assets & \( \$ 44,106,000 \) & \( \$ 25,342,000 \) \\ Liabilities & & \\ Accounts payable & \( \$ 7,366,000 \) & \( \$ 3,430,000 \) \\ Short-/current long-term debt & \( 1,262,000 \) & 787,000 \\ Other current liabilities & \( 1,884,000 \) & \( 4,295,000 \) \\ Total current liabilities & \( \$ 10,512,000 \) & \( \$ 8,512,000 \) \\ Long-term debt & \( 17,490,000 \) & \( 2,132,000 \) \\ Other long-term liabilities & \( 2,392,000 \) & \( 5,318,000 \) \\ \hline Total long-term liabilities & \( \$ 19,882,000 \) & \( \$ 7,450,000 \) \\ Total stockholders' equity & \( 13,712,000 \) & \( 9,380,000 \) \\ \hline Total liabilities and owners' equity & \( \$ 44,106,000 \) & \( \$ 25,342,000 \) \\ \hline \end{tabular} (Click on the icon \( \square \) in order to copy its contents into a spreadsheet.) How would you summarize the financial performance of Sears compared to Target (its benchmark firm)? (Select the best choices below.) \begin{tabular}{lll} Category of Financial Ratios & Sears' Performance vs. Target \\ 2. Capital Structure Ratios Debt Ratio & \( \bigcirc \) A. Better & B. Similar \\ \hline Times Interest Earned & \( \bigcirc \) A. Better & Worse \\ \hline \end{tabular} \begin{tabular}{lll} Category of Financial Ratios 3. Asset Management Efficiency Ratios Total Assets Turnover & Sears' Performance vs. Target & A. Better \\ \hline Fixed Assets Turnover & \( \bigcirc \) A. Better & Similar \\ \hline \end{tabular}