Target Corporation (TGT)
Fixed asset turnover
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 106,581,000 | 106,930,000 | 108,661,000 | 105,937,000 | 92,087,000 |
| Property, plant and equipment | US$ in thousands | 31,465,000 | 33,096,000 | 31,512,000 | 28,181,000 | 26,879,000 |
| Fixed asset turnover | 3.39 | 3.23 | 3.45 | 3.76 | 3.43 |
February 1, 2025 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $106,581,000K ÷ $31,465,000K
= 3.39
The fixed asset turnover ratio for Target Corporation has shown some fluctuations over the past five years. In January 2022, the ratio increased to 3.76 from 3.43 in January 2021, indicating that the company generated $3.76 in sales for every $1 of fixed assets invested. However, this increase was followed by a slight decrease to 3.45 in January 2023, suggesting a minor decline in efficiency in utilizing fixed assets to generate sales.
By February 2024, the fixed asset turnover ratio further decreased to 3.23 before showing a recovery to 3.39 by February 2025. These fluctuations demonstrate that Target Corporation has been able to efficiently utilize its fixed assets to generate sales, with some variability in performance over the years.
Overall, the trend in the fixed asset turnover ratio indicates that Target Corporation has been relatively effective in leveraging its fixed assets to drive sales, although there have been fluctuations in efficiency over the period under review.
Peer comparison
Feb 1, 2025