If you wanted to evaluate the financial condition of Target Stores,a leading discount chain,you would most likely compare its financial ratios to ____ ratios.
A) Walmart's
B) JCPenney's
C) General Electric's
D) small retailer industry's average
E) Target in future years

Question

Quizplus · Accepted Answer

Comparing Target's financial ratios to Walmart's would provide the most relevant and meaningful comparison, as both companies are major players in the same industry and have similar business models. Comparing to JCPenney's or General Electric's ratios would not be as relevant or useful, as they operate in different industries and have different business models. Comparing to the industry average may provide some insights, but it may not reflect Target's specific market position and competitive advantages. Comparing to Target's own future ratios may be useful for tracking its performance over time, but it would not provide a benchmark for evaluating its relative performance in the industry.

If You Wanted to Evaluate the Financial Condition of Target