A financial analysis was done using most the recent published financial statements to understand Target’s competitive position within the discount retail industry. The three key competitors within the United States include Walmart, Target, and Costco. First, looking at size, Walmart is the largest with a $482 billion in total revenue, following by Costco’s $116 billion, then Target’s $74 billion. This is because Walmart is significantly broader in regards to geographical location and respective target markets. Then if we look at financial ratios, Target is the winner. Target has a 29.5% gross margin, 6.7% operating margin, 4.5% net margin, and 25.6% return on equity – all higher than Walmart’s and Costco’s. Return on invested capital (ROIC)
