Target Corporation (TGT)
Fixed asset turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 106,930,000 | 108,661,000 | 105,937,000 | 92,087,000 | 77,638,000 |
| Property, plant and equipment | US$ in thousands | 31,626,000 | 31,512,000 | 28,181,000 | 26,879,000 | 26,283,000 |
| Fixed asset turnover | 3.38 | 3.45 | 3.76 | 3.43 | 2.95 |
February 3, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $106,930,000K ÷ $31,626,000K
= 3.38
Fixed asset turnover is a financial ratio that measures how efficiently a company is generating revenue from its fixed assets. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales.
Target Corporation's fixed asset turnover has fluctuated over the past five years, with values of 3.38 in 2024, 3.45 in 2023, 3.76 in 2022, 3.43 in 2021, and 2.95 in 2020. The trend shows that there was a peak in 2022, followed by a slight decline in the following years.
Overall, Target Corporation has been able to consistently generate sales per dollar of fixed assets invested in the business, with ratios generally above 3. This suggests that the company efficiently uses its fixed assets to support revenue generation. However, it is essential to monitor any fluctuations in the ratio to ensure that the company continues to effectively utilize its fixed assets to drive sales growth.
Peer comparison
Feb 3, 2024