Target Corporation (TGT)

Fixed asset turnover

		Feb 1, 2025	Nov 2, 2024	Aug 3, 2024	May 4, 2024	Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020
Revenue (ttm)	US$ in thousands	106,475,000	107,377,000	107,000,000	106,180,000	106,930,000	106,383,000	107,485,000	108,778,000	108,661,000	108,286,000	107,440,000	106,571,000	105,937,000	103,275,000	99,728,000	97,525,000	92,599,000	87,635,000	84,187,000	79,636,000
Property, plant and equipment	US$ in thousands	31,465,000	32,931,000	33,075,000	33,114,000	33,096,000	33,168,000	32,947,000	32,396,000	31,512,000	30,921,000	29,820,000	28,670,000	28,181,000	27,915,000	27,244,000	26,804,000	26,879,000	26,773,000	26,739,000	26,589,000
Fixed asset turnover		3.38	3.26	3.24	3.21	3.23	3.21	3.26	3.36	3.45	3.50	3.60	3.72	3.76	3.70	3.66	3.64	3.45	3.27	3.15	3.00

February 1, 2025 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $106,475,000K ÷ $31,465,000K
= 3.38

Target Corporation has shown a consistent and gradually increasing trend in its fixed asset turnover ratio over the past few years. The fixed asset turnover ratio measures how efficiently the company utilizes its fixed assets to generate sales revenue.

From May 2, 2020, to February 1, 2025, Target Corporation's fixed asset turnover ratio has ranged from 3.00 to 3.38. The ratio indicates that for each dollar invested in fixed assets, Target generated between $3.00 to $3.38 in sales revenue.

The increase in the fixed asset turnover ratio over the period suggests that Target has been able to improve its efficiency in utilizing its fixed assets to generate sales. This can be a positive indicator of operational efficiency and effective asset management within the company.

However, it is important to note that while a higher fixed asset turnover ratio generally indicates better efficiency, the ratio should be analyzed in conjunction with other financial metrics and industry benchmarks to get a comprehensive understanding of Target Corporation's overall financial performance and asset utilization.