Target Corp. Weighted Average Cost of Capital
According to the consolidated balance sheet on January 30, 2010 (exhibit 1), the total amount of debt, including short-term and long-term debts and other current liabilities was at $16.814 billion. Account Payable is excluded from the WACC’s debt component because it is not a source of funding that comes from …show more content…
Since this analysis is built upon some assumptions and historical data, it will provide only a close estimate of the opportunity cost. Nevertheless, it should help assess the company’s overall level of risk and serve as a useful tool to value potential long-term investments in the future.
Exhibit 1: Consolidated Annual Balance Sheets for the Fiscal year ending in January View: Annual Data | Quarterly Data | All numbers in thousands |
Period Ending | Jan 30, 2010 | Jan 31, 2009 | Feb 2, 2008 | | Assets | Current Assets | | Cash And Cash Equivalents | 2,200,000 | 864,000 | 2,450,000 | | Short Term Investments | - | - | - | | Net Receivables | 6,966,000 | 8,084,000 | 9,207,000 | | Inventory | 7,179,000 | 6,705,000 | 6,780,000 | | Other Current Assets | 2,079,000 | 1,835,000 | 469,000 | | Total Current Assets | 18,424,000 | 17,488,000 | 18,906,000 | Long Term Investments | - | 163,000 | 215,000 | Property Plant and Equipment | 25,280,000 | 25,756,000 | 24,095,000 | Goodwill | - | 60,000 | 208,000 | Intangible Assets | - | 171,000 | - | Accumulated Amortization | - | - | - | Other Assets | 829,000 | 862,000 | 1,136,000 | Deferred Long Term Asset Charges | - | - | - | | Total Assets | 44,533,000 | 44,106,000 |