hey guys…
im going to be purchasing a modelling course here in the next month or so, but wanted to start taking a stab at some things using some free material i have to see what i could come up with, and then make adjustments as i learn more throughout the self study.
so im working on TGT right now and im curious how i should handle the credit card business. they provide revenues separately in the 10-k for the credit cards, but i just projected out using total revenues. im having more of a problem with the balance sheet as one of the items is “credit card receivables net of inventory”. having trouble with this…
- the credit card revenues led me to believe this was money they are making off of the target card, but what would "credit card receivables net of inventory "be? this may be a lack of my understanding of the business, but i dont think that its them waiting for visa, mastercard, amex, or whoever to pay them for purchases made on cards in general, i would think its the outstanding balances on the target card only. if so, i get it, and then does that mean that if they didnt have a credit card division then they wouldn’t have any receivables because there is no “accounts receivable”??? is that typical in retailers? also, for the first time at least in the last 5 years it is being shifted from credit card receivables “net of inventory” to “held for sale”…are they selling their receivables to collect sooner?
full disclosure - i have not read the 10k yet. i was trying to get a working model going and then was going to read it and make any adjustments i felt were necessary after the fact. i am starting to realize that maybe this isn’t the best idea, like trying to run a marathon without ever having attempted a 5k, but again this is for leisure/practice and my first stab at it.
any insight would be appreciated!