How To Write A Reflective Essay On Target's Working Capital

For this week’s reflection, I chose Target because it is the second biggest retail corporation in the United States. Their mission is providing an outstanding guest experience, excellent products and design brands that many can afford. Also, it tends to attract younger customer for their excellent collection of products such as apparel, accessories, Converse tennis shoes, furniture, beddings, and groceries. Moreover, for Target to consider in buying more products to satisfy their customers they need to utilize their working capital wisely to maintain their day-to-day operations.
Businesses tend to focus on either profitability or liquidity and for Target this is no different. So, if Target wants to know how profitable they are, they can access
Target didn’t only make enough money to pay the supplier ($1,000) but they made a $500 in profit.

Furthermore, Target’s working capital reflects the results of the host of the company’s activities including inventory management, debt management, revenue collection, and payments to suppliers. Having a positive working capital indicates that the company is able to pay off its SHORT-TERM liabilities and almost IMMEDIATELY. While having a negative working capital generally indicates a company is unable to do so. In addition, one of the most significant uses of working capital is inventory. The longer the inventory sits on the shelves or in Target’s warehouses the longer the company’s working capital is tied up.
Lastly, finding ways to keep working capital stable is particularly difficult because it can vary from company to company. What works for Target may not work for Wal-Mart, or any other competitor, considering that many different companies use different revenue accounting methods. Consequently, working capital is one of the many metrics that investors use to evaluate Target’s financial health and making their final decision whether to invest or not in this