Target Corporation (TGT)

Days of Sales Outstanding (DSO) is a key financial ratio that indicates the average number of days it takes for a company to collect its accounts receivable. A lower DSO value suggests that the company is collecting payments from customers more quickly, which is generally favorable as it improves the company's cash flow and liquidity.

Based on the provided data for Target Corporation, without specific numerical values, it is not possible to calculate the actual DSO ratio for each year. However, for a comprehensive analysis, it is important to note the trend of DSO over the years.

If the DSO for Target Corporation has been decreasing over the years, it indicates that the company has been improving its receivables management by collecting payments from customers more efficiently. This may be a positive sign of effective credit policies and strong relationships with customers.

On the other hand, if the DSO has been increasing or remaining high, it could suggest that the company is facing challenges in collecting payments promptly, which may lead to cash flow issues and potential liquidity concerns.

To have a more insightful understanding of Target Corporation's DSO performance, it would be beneficial to compare the DSO values to industry benchmarks and to analyze any available explanations or management discussions provided in the financial reports.

Peer comparison

Feb 3, 2024

See also:

Target Corporation Average Receivable Collection Period