Target Corporation (TGT)

Short-term

Turnover ratios

Based on the provided data, we can analyze the activity ratios of Target Corporation as follows:

1. Inventory Turnover:
- Target's inventory turnover has shown some fluctuations over the years, ranging from a high of 11.58 in May 2020 to a low of 4.94 in January 2023.
- A high inventory turnover indicates efficient management of inventory, while a low turnover may suggest overstocking or slow-moving inventory.
- Target's inventory turnover improved towards the later years of the data, indicating better inventory management.

2. Receivables Turnover:
- Unfortunately, there is no data available for Target's receivables turnover, which hinders our ability to assess the efficiency of the company in collecting outstanding receivables.

3. Payables Turnover:
- Target's payables turnover ratio has varied from 5.27 in October 2020 to 8.74 in May 2024.
- A higher payables turnover ratio suggests that Target is taking longer to pay its suppliers, potentially benefiting from favorable credit terms.
- Overall, Target's payables turnover has shown an increasing trend over the years, indicating improvements in managing its payables effectively.

4. Working Capital Turnover:
- The working capital turnover ratio was highest in May 2, 2020, at 392.30, signaling that Target was effectively utilizing its working capital to generate sales.
- However, the data for later years is missing, making it difficult to track the trend and analyze the overall effectiveness of Target's working capital management.

In conclusion, Target Corporation has shown varying trends in its activity ratios over the years, with improvements in inventory turnover and payables turnover. However, the absence of data for receivables turnover and later years of working capital turnover restricts a comprehensive assessment of the company's overall efficiency in managing its assets and liabilities.

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Average number of days

Based on the provided data, we can analyze Target Corporation's activity ratios as follows:

1. Days of Inventory on Hand (DOH):
- Target's DOH increased from 31.51 days on May 2, 2020, to a peak of 73.83 days on January 28, 2023, before decreasing to 42.37 days by May 4, 2024.
- The trend indicates that Target held inventory for a longer period in certain periods, possibly indicating slower inventory turnover.
- Goal for Target: Target should aim to optimize its inventory management to reduce the DOH and improve efficiency in inventory turnover.

2. Days of Sales Outstanding (DSO):
- The DSO data is not available for the periods provided, which limits our analysis of Target's accounts receivable turnover efficiency.
- Without DSO data, it is challenging to assess how quickly Target collects payments from its customers.

3. Number of Days of Payables:
- Target's payables days ranged from 35.33 days on May 2, 2020, to 51.78 days on November 2, 2024.
- The fluctuations in payables days suggest variations in the time taken by Target to pay its suppliers.
- Target should strike a balance in managing payables to ensure good relationships with suppliers while optimizing cash flow.

Overall, the analysis of activity ratios for Target Corporation indicates areas where the company may need to focus on optimizing inventory turnover, accounts receivable collection, and payables management to enhance operational efficiency and financial performance.

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See also:

Target Corporation Short-term (Operating) Activity Ratios (Quarterly Data)

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Long-term

The fixed asset turnover ratio for Target Corporation has shown a generally increasing trend over the past few years, indicating that the company has been more efficient in generating sales from its fixed assets. The ratio increased from 3.00 in May 2020 to 3.38 in February 1, 2025, with some fluctuations along the way. This suggests that Target has been able to utilize its fixed assets more effectively to drive revenue.

On the other hand, the total asset turnover ratio for Target Corporation has been somewhat volatile but has demonstrated an overall increasing trend. The ratio fluctuated between 1.73 and 2.10 during the period under review. The ratio measures how well the company is utilizing all its assets to generate sales. The increasing trend indicates that Target has been improving its overall asset utilization efficiency over time.

In conclusion, both the fixed asset turnover and total asset turnover ratios indicate that Target Corporation has been improving its efficiency in utilizing its assets to generate sales. This is a positive sign for the company's operational performance and could potentially lead to improved profitability in the future.

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See also:

Target Corporation Long-term (Investment) Activity Ratios (Quarterly Data)