Financial Stability Highlights
Financial stability is one of most indispensable things on which the investors as well as the creditors merely accentuates. We are well aware with the fact that the year 2008 a number of companies to relinquished badly in front of the blood sucking financial meltdown and in the current scenario almost every company is looking towards consolidating their operations by providing additional funds.
Our Company, Target, which is one of the most dominating stores of the world in which we offer a large portfolio of diversified products like, toys, furniture, food items, cosmetics and other related stuffs (Company Overview, retrieved from www.target.com). The year 2008 was inevitably, one of the toughest year, we have confronted ever which constrained us to solicit emphatically to do acquisition or indulge in the wheel of loan. Two companies have shown their intentions to excrete our company from the current distress but both the companies have different strategies as far as our facilitation is concerned. One of the companies is intend to become a partner of us while other want to give a huge loan to us but they want to have a financial stability report in which the financial summary must be highlighted from their prospective. It can be clearly observe that the net earning of Target, deteriorated FY 2008 due to the current credit crunch manifested a decline of $635 Millions or 22% as compared with the same period of the preceding year. Net assets of the company were also decreased by $454 Million or 1% from the last year (Target Financial Report 2008, retrieved from http://investors.target.com/phoenix.zhtml?p=irol-irhome&ref=nav%5Ffooter%5Finvestors&c=65828). If see critically on the financial report then we will certainly get an idea that the long term debts were increased drastically FY 2007 and 2008 by $6553 Million and $2162 Million respectively but the sales of the company didn’t increase with the same intensity, sales growth increased by $3877 M FY 2007 and only increased $1581 M FY 2008 which shows that the company is still under the shadow of the credit crunch. In my views to accept the proposal of the first company will comparatively more fruitful for Target Corporation who wants to become a part of our company. The action will not only increase our funds of operations but also gives a severe ad hoc to us to enhance the area of doing business.