When comparing 2017 to 2008, how can Target Corporation’s EPS rise, yet its net earnings decrease? Target Corporation (NYSE: ) has been repurchasing its common stock over the past several years. Target’s fiscal year ends on the Saturday nearest to January 31. Use the information from Target’s 2017 and 2008 fiscal years (a ten-year gap) in this table to answer the questions that follow. Target Corporation Comparing 2017 EPS to 2008 EPS For Fiscal year ended Jan. 28, 2017 Feb. 02, 2008 Net earnings per share ("EPS") $4.74 $3.37 Net earnings ("Net income") (in millions) $2,737 $2,849 Weighted-average common shares outstanding (in millions) 577.6 845.4 Approximate hypothetical 2017 EPS using 2008 common shares ($2,737 ÷ 845.4 = $3.24) $3.24 Questions Judging solely on earnings per share (EPS), has Target’s performance improved since 2008? Now judging solely on net earnings, has Target’s performance improved since 2008? How can you explain the difference between the two answers above? Approximately how many common shares has Target repurchased over the ten-year period illustrated in the table?
When comparing 2017 to 2008, how can Target Corporation’s EPS rise, yet its net earnings decrease? Target Corporation (NYSE: ) has been repurchasing its common stock over the past several years. Target’s fiscal year ends on the Saturday nearest to January 31. Use the information from Target’s 2017 and 2008 fiscal years (a ten-year gap) in this table to answer the questions that follow. Target Corporation Comparing 2017 EPS to 2008 EPS For Fiscal year ended Jan. 28, 2017 Feb. 02, 2008 Net earnings per share ("EPS") $4.74 $3.37 Net earnings ("Net income") (in millions) $2,737 $2,849 Weighted-average common shares outstanding (in millions) 577.6 845.4 Approximate hypothetical 2017 EPS using 2008 common shares ($2,737 ÷ 845.4 = $3.24) $3.24 Questions Judging solely on earnings per share (EPS), has Target’s performance improved since 2008? Now judging solely on net earnings, has Target’s performance improved since 2008? How can you explain the difference between the two answers above? Approximately how many common shares has Target repurchased over the ten-year period illustrated in the table?