Estimate Target return on invested capital or ROIC

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Target Corporation: ROIC

For the fiscal year ending January 31, 2012, Target’s EBIT was $5,322,* and its tax rate was 34.3 percent. Its short-term borrowings were $3,786, and its long-term debt was $13,697. In addition, the firm’s book value of equity was $15,821.

1. Estimate Target’s return on invested capital or ROIC.

2. Compare it with Walmart’s. Are you surprised at the difference?

Walmart return on invested capital or ROIC is the following: In 2012, 14.4% and In 2011, 14.6%

Reference no: EM131582253

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