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Working Capital and Financial Environment Free Essay, Term Paper and Book Report

Working Capital and Financial Environment Working Capital and Financial Environment The elements of working capital for two large retail stores such as Wal-Mart and Target were not comparable because Wal-Mart is the larger retail store of the two. Since the Target stores are a seasonal nature business, their working capital needs are more in the months leading up to their peak sales period from Thanksgiving to December every year. The increase in working capital during this time frame is financed with cash flow from operations and short-term borrowings. The Target Corporation had substantial sales and earnings growth in the fiscal year 2006. The earnings from continuing operations increased 15.8 percent to $2,787 million and diluted earnings per share rose 18.5 percent to $3.21. The combined totals of retail and credit card operations produced earnings from continuing operations before interest expense and income taxes of $5,069 million. The combination of retail and credit card operations was an increase of more than 17 percent from 2005. Net cash provided by operating a......

Word Count: 1358
Page Count: 5.4  (250 words a page / double spaced)


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