Target Corporation (TGT)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 869,000 | 3,433,000 | 3,497,000 | 3,604,000 | 908,000 | 1,910,000 | 1,617,000 | 1,321,000 | 886,000 | 954,000 | 1,117,000 | 1,112,000 | 926,000 | 5,753,000 | 7,368,000 | 7,816,000 | 867,000 | 5,996,000 | 7,284,000 | 4,566,000 |
| Short-term investments | US$ in thousands | 3,893,000 | — | 2,465,000 | 2,726,000 | 2,897,000 | 1,000,000 | 739,000 | 408,000 | 1,343,000 | 53,000 | 34,000 | 41,000 | 4,985,000 | 12,000 | 6,439,000 | 6,895,000 | 7,644,000 | 19,000 | 27,000 | 18,000 |
| 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 |
| Cash ratio | 0.23 | 0.16 | 0.30 | 0.32 | 0.20 | 0.14 | 0.12 | 0.10 | 0.11 | 0.04 | 0.05 | 0.06 | 0.27 | 0.25 | 0.71 | 0.79 | 0.42 | 0.31 | 0.46 | 0.32 |
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 fluctuations over the period from May 2, 2020, to February 1, 2025. The cash ratio is a measure of a company's ability to cover its short-term liabilities with its cash and cash equivalents.
The ratio was at its highest in May 1, 2021, and then again in July 31, 2021, with values of 0.79 and 0.71 respectively, indicating a strong ability to cover its short-term obligations with cash on hand during those periods. This could be indicative of effective cash management strategies or increased liquidity during those times.
However, there were significant declines in the cash ratio in the subsequent periods, notably in April 30, 2022, July 30, 2022, and October 29, 2022, where the ratio dropped to 0.06, 0.05, and 0.04 respectively. These lower ratios suggest a reduced ability to cover short-term liabilities with cash during those periods, which could potentially indicate cash flow challenges or increased short-term obligations.
Overall, Target Corporation's cash ratio has shown variability, with both highs and lows, which may reflect changes in the company's liquidity position and its ability to manage short-term obligations with cash reserves. Monitoring this ratio over time can provide insights into the company's financial health and cash management practices.
Peer comparison
Feb 1, 2025