1.COMPLETE A HORIZONTAL ANALYSIS OF TARGET FOR THE COMPARATIVE BALANCE SHEET AND
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1.COMPLETE A HORIZONTAL ANALYSIS OF TARGET FOR THE COMPARATIVE BALANCE SHEET AND INCOME STATEMENT PRESENTED IN YOUR ANNUAL REPORT. DISCUSS ANY SIGNIFICANT INCREASES OR DECREASES THAT YOU UNCOVER (PLUS OR MINUS 10%). IF NONE EXIST SAY SO IN YOUR ANALYSIS. 2. COMPLETE A VERTICAL ANALYSIS (COMMON-SIZE FINANCIAL STATEMENTS) OF TARGET FOR THE COMPARATIVE BALANCE SHEET AND INCOME STATEMENT PRESENTED IN YOUR ANNUAL REPORT DISCUSS ANY SIGNIFICANT INCREASES OR DECREASES THAT YOU UNCOVER (PLUS OR MINUS 10%). IF NONE EXIST SAY SO IN YOUR ANALYSIS. Consolidated Statements of Operations (millions, except per share data) Sales Cost of sales Gross margin Selling, general and administrative expenses Depreciation and amortization Gain on sale Earnings from continuing operations before interest expense and income 2014 $69,495 $ 73,785 $ 72,618 51,278 21,340 14,676 2,298 2,213 2,129 2016 2015 48,872 20,623 13,356 51,997 21,788 14,665 taxes Net interest expense Earnings from continuing operations before income taxes Provision for income taxes Net earnings from continuing operations Discontinued operations, net of tax Net earnings/(loss) Basic earnings/(loss) per share 4,535 882 3,653 1,204 2,449 4,085) $ 2,737 $ 3,363 S (1,636) 4,969 1,004 3,965 1,296 2,669 68 (620) 5,530 607 4,923 1,602 3,321 42 Continuing operations $ 4.62 $ 5.29 $ 3.86 (6.44) Discontinued operations 0.12 0.07 Net earnings/(loss) per share Diluted earnings/(loss) per share Continuing operations $ 4.58 5.25 $ 3.83 0.07 Discontinued operations (6.38) Net earnings/ (loss) per share Weighted average common shares outstanding 4.70 $ 577.6 582.5 5.31 $ 2.56) 634.7 640.1 Basic 627.7 5.2 632.9 Dilutive effect of share-based awards Diluted Antidilutive shares Dividends declared per share Note: Per share amounts may not foot due to rounding. See accompanying Notes to Consolidated Financial Statements.Explanation / Answer
1. Horizontal analysis of Balance Sheet and Income statement:
As we can see significant changes (i.e. more than +/-10%) were witnessed by cash (fall of 37.91%), assets of discontinued operations (fall by 78.57%), total current assets (fall by 15.15%), construction in progress (36.51%), non-current assets of discontinued operations (fall by 84%), accrued and other current liabilities (fall by 11.78%), current portion of long term debt (rise of 110.8%), liabilities of discontinued operations (fall by 99.35%), and additional paid in capital (fall by 28.14%).
EBIT declined by 10.14%, net interest expense increased by 65.4%, EBT declined by 19.46%, provision for tax declined by 19.10%, net earnings from continuing operations declined by 19.63%, discontinued operations increased by 61.9% and net earnings declined by 18.61%.
2. Vertical analysis:
We can see that as a percentage of total assets there is no significant change in line item in 2016 from 2015. For instance in 2016 cash as a % of total assets = 6.71% and in 2015 it was 10.05%. Thus there is a fall of 3.34%. Similarly no other line item showed a change of more than 10%.
We can see that as a % of sales there are no significant changes (more than 10%) in line items in 2016 compared to 2015. For example cost of sales as a % of sales in 2016 is 70.32% and in 2015 is 70.47%. Thus change is -0.15%.
Increase/(Decrease) Balance Sheet 2016 2015 Amount % Assets Cash and equivalents 2,512.00 4,046.00 (1,534.00) -37.91% Inventory 8,309.00 8,601.00 (292.00) -3.39% Assets of discontinued operations 69.00 322.00 (253.00) -78.57% Other current assets 1,100.00 1,161.00 (61.00) -5.25% Total current assets 11,990.00 14,130.00 (2,140.00) -15.15% Property and equipment Land 6,106.00 6,125.00 (19.00) -0.31% Building & improvements 27,611.00 27,059.00 552.00 2.04% Fixtures & equipment 5,503.00 5,347.00 156.00 2.92% Computer hardware and software 2,651.00 2,617.00 34.00 1.30% Construction in progress 200.00 315.00 (115.00) -36.51% Accumulated depreciation (17,413.00) (16,246.00) (1,167.00) 7.18% Property and equipment, net 24,658.00 25,217.00 (559.00) -2.22% Noncurrent assets of discontinued operations 12.00 75.00 (63.00) -84.00% Other noncurrent assets 771.00 840.00 (69.00) -8.21% Total assets 37,431.00 40,262.00 (2,831.00) -7.03% Liabilities and shareholder's investment Accounts payable 7,252.00 7,418.00 (166.00) -2.24% Accrued and other current liabilities 3,737.00 4,236.00 (499.00) -11.78% Current portion of long term debt 1,718.00 815.00 903.00 110.80% Liabilities of discontinued operations 1.00 153.00 (152.00) -99.35% Total current liabilities 12,708.00 12,622.00 86.00 0.68% Long term debt 11,031.00 11,945.00 (914.00) -7.65% Deferred income tax 861.00 823.00 38.00 4.62% Noncurrent liabilities of discontinued operations 18.00 18.00 0.00 0.00% Other noncurrent liabilities 1,860.00 1,897.00 (37.00) -1.95% Total noncurrent liabilities 13,770.00 14,683.00 (913.00) -6.22% Shareholder's investment Common stock 46.00 50.00 (4.00) -8.00% Additional paid in capital 5,661.00 5,348.00 313.00 5.85% Retained earnings 5,884.00 8,188.00 (2,304.00) -28.14% Accumulated other comprehensive loss Pension liabilities (601.00) (588.00) (13.00) 2.21% Currency translation adjustment (37.00) (41.00) 4.00 -9.76% Total shareholder's investment 10,953.00 12,957.00 (2,004.00) -15.47% Total liabilities and shareholder's investment 37,431.00 40,262.00 (2,831.00) -7.03%Related Questions
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