Target Corporation (TGT)

Working capital 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
Total current assets	US$ in thousands	19,454,000	20,554,000	17,918,000	17,078,000	17,498,000	18,599,000	16,098,000	15,773,000	17,846,000	20,393,000	18,453,000	17,953,000	21,573,000	22,576,000	20,231,000	19,931,000	20,756,000	20,309,000	17,623,000	14,615,000
Total current liabilities	US$ in thousands	20,799,000	21,792,000	19,984,000	19,859,000	19,304,000	21,502,000	19,332,000	17,867,000	19,500,000	23,783,000	22,445,000	20,724,000	21,747,000	23,351,000	19,422,000	18,598,000	20,125,000	19,357,000	15,892,000	14,412,000
Working capital turnover		—	—	—	—	—	—	—	—	—	—	—	—	—	—	123.27	73.16	146.75	92.05	48.63	392.30

February 1, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $106,475,000K ÷ ($19,454,000K – $20,799,000K)
= —

Working capital turnover is a financial ratio that measures how efficiently a company is using its working capital to generate sales revenue. It indicates the number of times a company's working capital is being used to support its sales operations over a specific period.

Based on the provided data for Target Corporation, the working capital turnover has shown fluctuations over the reported periods. The working capital turnover ratio for Target Corporation ranged from 48.63 to 392.30 during the period from May 2, 2020, to January 30, 2021. This signifies significant variability in the company's efficiency in utilizing its working capital to drive sales during this time frame.

The high value of 392.30 on May 2, 2020, suggests that Target was able to generate a high level of sales revenue relative to its working capital at that point. However, this was followed by a sharp decline in August 1, 2020, to 48.63, indicating a decrease in the efficiency of working capital utilization during that period. Subsequently, the ratio improved in the following quarters, reaching 146.75 on January 30, 2021.

As of the latest reported data point in July 31, 2021, the working capital turnover stood at 123.27. It is important to note that values for the ratio were not provided beyond this date, suggesting data limitations in assessing the company's more recent performance in this aspect.

Overall, fluctuations in working capital turnover can have implications for Target Corporation's operational efficiency and financial health. A higher ratio generally indicates better efficiency in utilizing working capital, while a lower ratio may suggest inefficiencies or a need for improved management of working capital resources. Monitoring and analyzing this ratio over time can provide insights into the company's ability to maintain a balance between supporting its sales activities and managing its working capital effectively.