Target Corporation (TGT)
Cash conversion cycle
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 46.01 | 42.61 | 46.77 | 52.23 | 44.65 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | 47.14 | 43.37 | 46.73 | 58.15 | 53.90 |
| Cash conversion cycle | days | -1.13 | -0.76 | 0.04 | -5.92 | -9.25 |
February 1, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 46.01 + — – 47.14
= -1.13
The cash conversion cycle of Target Corporation has shown improvement over the years based on the data provided.
On January 30, 2021, the cash conversion cycle was -9.25 days, indicating that Target was converting its inventory into cash quickly. By January 29, 2022, the cycle improved further to -5.92 days, suggesting more efficient management of inventory and accounts receivable.
By January 28, 2023, the cash conversion cycle nearly reached breakeven at 0.04 days, indicating that Target was able to convert inventory and receivables into cash almost instantly. The trend continued positively as of February 3, 2024, with a cash conversion cycle of -0.76 days, showing continued efficiency in the conversion process.
As of February 1, 2025, the cash conversion cycle remained low at -1.13 days, implying that Target was effectively managing its working capital and converting it into cash efficiently.
Overall, Target Corporation has shown consistent improvement in its cash conversion cycle, indicating effective management of working capital and operational efficiency.
Peer comparison
Feb 1, 2025