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Comparing Walmart And Target Capital Expenditures

852 words - 4 pages

Comparing Walmart and Target Capital Expenditures
University

Comparing Walmart and Target Capital Expenditures
In every business there is always a need for capital expenditures. Capital Expenditures can be very beneficial and can also differentiate the numbers from rival companies. According to readings “capital expenses are extensive and mostly hold a company’s substantial amount of money. Companies invest in prime property, plant, machinery, buildings and other forms of fixed assets, which also act as securities for the company. I chose to look up the Capital Expenditures of two companies that are known in many households: Walmart and Target. The annual report of mutually businesses ...view middle of the document...

The increase in depreciation was at the similar rate from 2011 to 2012 as it was from 2012 to 2013. The net fixed resources improved more from 2011 to 2012 than it did from 2012 to 2013” (Mergent Inc., 2013).

The capital spending over the past three years for Target (Mergent, 2013):
2013 2012 2011
Net Fixed Assets $50,275 $45,650 $44,705
Depreciation Expense $2,266 $2,232 $2,104
Net Capital Spending $52,315 $58,771 $46,876

According to Mergent “Target has had their net capital spending increase each of the three years. The chief purpose why it has increased is due to the fixed assets and depreciation expenses both increasing each year. The net fixed resources developed at a related rate each year while the devaluation expenditure developed at a higher rate from 2011 to 2012 than it did from 2012 to 2013” (Mergent Inc. 2013).
Walmart capital expenditures are the following:
2013 2012 2011
Proceeds from the disposal of property & equipment 534,000 582,000 491,000
Investments & business acquisitions, net of cash acquired (318,000) (3,550,000) (204,000)
Other investing activities 73,000 (131,000) 221,000

Target capital expenditures are the following:
2013 2012 2011
Proceeds from disposal of property & equipment 68 39 71
Change in accounts receivable originated at third parties 256 261 365
Other investments 104 (110) (49)

Walmart debt to equity ratio is (Mergent Inc., 2013):
2013 2012 2011
Total Assets 203,207,000 196,416,000 185,665,000
Total Liabilities 73,820,000 64,302,000 59,448,000
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