Target Corporation (TGT)
Cash ratio
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 869,000 | 908,000 | 886,000 | 926,000 | 867,000 |
| Short-term investments | US$ in thousands | 3,893,000 | 2,897,000 | 1,343,000 | 4,985,000 | 7,644,000 |
| Total current liabilities | US$ in thousands | 20,799,000 | 19,304,000 | 19,500,000 | 21,747,000 | 20,125,000 |
| Cash ratio | 0.23 | 0.20 | 0.11 | 0.27 | 0.42 |
February 1, 2025 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($869,000K
+ $3,893,000K)
÷ $20,799,000K
= 0.23
The cash ratio of Target Corporation has shown a declining trend over the past five years, starting at 0.42 on January 30, 2021, and decreasing to 0.27 on January 29, 2022, 0.11 on January 28, 2023, increasing slightly to 0.20 on February 3, 2024, and then rising to 0.23 on February 1, 2025.
A cash ratio below 1 indicates that Target Corporation may have limited cash on hand relative to its current liabilities, which could potentially signal a risk of liquidity problems. However, it's important to consider the industry standards and compare with competitors to get a better understanding of the company's liquidity position.
A decreasing cash ratio over time may also indicate that Target Corporation is becoming less able to cover its short-term liabilities with its available cash resources. This trend should be carefully monitored by investors and analysts to assess its potential impact on the company's financial health and ability to meet its obligations.
Peer comparison
Feb 1, 2025