Target Fr: Me Re: Funding Term Paper

The information provided for discussions with this particular company will consist of the following; sales at the end of fiscal year 2005 were $51,271 (in millions) as compared to $29,462 at the end of 2000. This growth portrays the strong sales revenue necessary to pay the interest and principal payments on any loans. The corporation's net interest expense has also fallen dramatically and is at the lowest point it has been since 2001. At the end of fiscal year 2005 it was 463 (in millions) versus 570 from the previous year. Target also remains strong in EBIT with a 8.2% and its dividends have growing strongly each year as well. In fiscal year 2000 the annual dividend was.215 per share and it currently is.38 per share (as of fiscal year 2005).

The year end receivables rose over 12% in 2005 and now totals approximately $6,117 millions, mainly from credit card issuance and usage of those credit options by Target customers.Target Corporation also has a philosophy that seeks to manage its debt and equity ratios which is evidenced by the fact that it has repurchased over $5 billion of its common stock during the last couple of years, as well as maintaining its short- and long-term debt maturities, so that they all do not come due at the same time, putting pressure on any cash flow.

Cash flow is one other event that has been a very positive and strong point for the corporation. Cash flow provided by operations increased to $4,451 million in 2005. In 2004 cash flow figures were at $3,808 million. The increase was due primarily to higher earnings from continuing operations. This is an ongoing trend as evidenced by the numbers from 2001 through 2005. In 2001 cash flow was at $2,601 million, grew to $3,188 million in 2003 and is at $4,451 as of the end of fiscal.....