2.3 Financial Reporting

Why are the exact dates different each year? (Hint: Look at the calendar for each year.)

Each year lasts 52 weeks (thus; each quarter is 13 weeks). Target's fiscal year ends on the last Saturday in the 52nd week of the fiscal year—the Saturday nearest January 31st.

What is the difference between a fiscal year and the calendar year?

A fiscal year is any 12-month period for which a company reports its financial information. It can start and end whenever the company chooses, as long as it includes 12 consecutive months. The calendar year starts on January 1st and ends on December 31st.

Does it strike you as odd that Target has no Accounts Receivable? What about those customers who used their Target charge cards? Don't they owe money to Target? (I promise not to ask this as a clicker question.)

Back in 2013, Target sold its credit card and store charge card business to TD Bank. Nowadays, when you use a Target charge card to buy stuff at Target, TD Bank pays Target immediately, and you have to pay TD Bank the amount due within a month. Many retailers have sold their receivables businesses: Bloomingdales, Macy's, Dillard's, Ann Taylor, etc.

Why do you suppose Target chose to have its fiscal year end in January? (Think creatively!)

Target's fiscal year begins at the start of February and ends at the end of January. Target's fiscal 2017 ended on 2/3/2018. They use this fiscal year to ensure that the huge volume of post-Christmas returns are in the same reporting period as the pre-Christmas sales revenue.