Target Corporation (TGT)

Activity ratios

Short-term

Turnover ratios

	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	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Inventory turnover	8.57	6.92	8.15	6.76	4.94	6.87	6.37	6.46	6.99	5.90	7.81	8.31	8.17	5.89	9.84	11.58	12.37	6.42	7.94	7.95
Receivables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Payables turnover	8.42	7.14	8.42	7.15	4.95	7.62	6.55	6.93	6.28	5.43	6.97	7.52	6.77	5.27	8.15	10.33	11.22	6.49	7.92	8.61
Working capital turnover	—	—	—	—	—	—	—	—	—	—	123.27	73.16	146.75	92.05	48.63	392.30	—	—	—	—

The inventory turnover for Target Corporation has shown fluctuations over the past several periods, ranging from a low of 4.94 to a high of 12.37. The average inventory turnover appears to be approximately 7.58 times per year. This suggests that Target is effectively managing its inventory levels and converting them into sales efficiently.

In contrast, information regarding receivables turnover is not provided in the data table, so it is difficult to assess how quickly Target is collecting payments from its customers.

The payables turnover ratio for Target has also varied, ranging from 4.95 to 11.22 over the periods presented. On average, Target takes around 7.63 days to pay its accounts payable. A relatively consistent payables turnover ratio indicates that Target is effectively managing its liabilities and maintaining good relationships with its suppliers.

Lastly, the working capital turnover ratio, which is calculated by dividing sales by working capital, indicates efficiency in utilizing working capital to generate sales revenue. Although data is missing for several periods, the available figures suggest fluctuations in working capital efficiency, with a significant peak in January 2020 and a subsequent decline. This could indicate changes in Target's working capital management strategies over time.

Average number of days

		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	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Days of inventory on hand (DOH)	days	42.61	52.72	44.80	53.96	73.83	53.13	57.33	56.53	52.23	61.88	46.71	43.93	44.65	61.95	37.08	31.51	29.50	56.89	45.95	45.93
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	43.37	51.14	43.36	51.04	73.77	47.92	55.73	52.67	58.16	67.22	52.40	48.51	53.90	69.21	44.81	35.33	32.54	56.20	46.11	42.38

The Days of Inventory on Hand (DOH) ratio for Target Corporation has shown fluctuations over the periods provided, ranging from a low of 29.50 days to a high of 73.83 days. Generally, a lower DOH indicates that the company is efficiently managing its inventory, ensuring quicker turnover and potentially lower carrying costs.

Unfortunately, data for the Days of Sales Outstanding (DSO) ratio is not provided, making it difficult to assess Target's collection efficiency from customers.

The Number of Days of Payables ratio for Target Corporation has varied between 32.54 days and 73.77 days. A lower number of days of payables suggests that the company is paying its suppliers more promptly, while a higher number indicates that the company is taking longer to settle its payables, potentially improving its cash flow position.

Overall, the activity ratios for Target Corporation reveal fluctuations in inventory management efficiency and payment practices over the periods analyzed, highlighting the importance of closely monitoring these metrics for financial performance evaluation.

Long-term

	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	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Fixed asset turnover	3.38	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	2.95	2.93	2.94	2.95
Total asset turnover	1.93	1.89	2.02	2.09	2.04	1.95	2.05	2.10	1.97	1.90	1.94	1.93	1.81	1.73	1.75	1.78	1.81	1.77	1.84	1.86

Target Corporation's long-term activity ratios provide insight into the efficiency of the company in generating sales from its assets over a period of time.

The fixed asset turnover ratio has shown a generally stable trend over the past several periods, ranging from 3.15 to 3.76. This indicates that Target has been effective in utilizing its fixed assets to generate sales. However, there has been a slight fluctuation in this ratio, suggesting some variability in the efficiency of the company's fixed asset utilization.

On the other hand, the total asset turnover ratio has also demonstrated a consistent performance, with values between 1.73 and 2.10. This metric indicates how well the company is utilizing all of its assets to generate revenue. The trend shows that Target has been able to efficiently generate sales compared to its total asset base.

Overall, both the fixed asset turnover and total asset turnover ratios suggest that Target Corporation has been effectively managing its assets to generate sales, with some minor fluctuations in efficiency observed over the period under review.