Target Corporation (TGT)
Cash ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 908,000 | 886,000 | 926,000 | 867,000 | 767,000 |
| Short-term investments | US$ in thousands | 2,897,000 | 1,343,000 | 4,985,000 | 7,644,000 | 1,810,000 |
| Total current liabilities | US$ in thousands | 19,304,000 | 19,500,000 | 21,747,000 | 20,125,000 | 14,487,000 |
| Cash ratio | 0.20 | 0.11 | 0.27 | 0.42 | 0.18 |
February 3, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($908,000K
+ $2,897,000K)
÷ $19,304,000K
= 0.20
The cash ratio of Target Corporation has fluctuated over the past five years. In the most recent fiscal year ending on February 3, 2024, the cash ratio stood at 0.20, indicating that for every dollar of current liabilities, Target had $0.20 of cash or cash equivalents on hand to cover immediate obligations. This represents an improvement compared to the previous year, where the cash ratio was 0.11.
Looking back over the five-year period, the highest cash ratio was observed on January 29, 2022, at 0.27, suggesting a stronger liquidity position at that time. Conversely, the lowest cash ratio was noted on February 1, 2020, at 0.18, signaling a relatively lower level of cash reserves compared to current liabilities.
Overall, Target Corporation's cash ratio has shown variability, indicating fluctuations in its ability to cover short-term obligations solely with its cash and cash equivalents. Trend analysis and further evaluation of the company's liquidity management strategies would be beneficial to assess the sustainability of its liquidity position.
Peer comparison
Feb 3, 2024