Solvency Ability Analysis of Costco Vs Target
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Bingqing Zhao
College:
College of Business and Public Management
Major:
Accounting
Faculty Research Advisor(s):
Huaibing Yu
Abstract:
Solvency ability is important for the company to survive and develop, a solvent retailer is more resilient during economic downturns, and able to weather challenges such as decreased consumer spending or increased competition. A financially stable retail business is more likely to attract investors, as they seek assurances that the company can meet its long-term obligations and generate returns. Costco and Target both are companies in the retail industry, therefore, to measure the solvency ability of Costco and Target, this project will search background information about the two companies, and collect data from balance sheet of the last five years of Costco and Target, using indicators such as total debt ratio, long-term debt-equity ratio, times interest earned to measure both short-term debt capacity and long-term debt capacity. By comparing these date. By establishing chart, analyzing and comparing these data, we will draw conclusions about the solvency of Costco and Target.