Target Corporation (TGT)
Cash ratio
| 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 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 767,000 | 969,000 | 1,656,000 | 1,173,000 |
| Short-term investments | US$ in thousands | 2,897,000 | 1,000,000 | 739,000 | 408,000 | 1,343,000 | 53,000 | 34,000 | 182,000 | 4,985,000 | 4,818,000 | 6,439,000 | 6,895,000 | 7,644,000 | 5,089,000 | 6,370,000 | 3,605,000 | 1,810,000 | 163,000 | 796,000 | 419,000 |
| Total current liabilities | US$ in thousands | 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 | 14,487,000 | 16,608,000 | 14,364,000 | 13,239,000 |
| Cash ratio | 0.20 | 0.14 | 0.12 | 0.10 | 0.11 | 0.04 | 0.05 | 0.06 | 0.27 | 0.45 | 0.71 | 0.79 | 0.42 | 0.57 | 0.86 | 0.57 | 0.18 | 0.07 | 0.17 | 0.12 |
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 several quarters. The cash ratio represents the company's ability to cover its current liabilities with its cash and cash equivalents.
From May 2019 to February 2020, the cash ratio remained relatively stable between 0.07 and 0.18, indicating that Target had enough cash to cover a portion of its current liabilities during that period.
In the subsequent quarters, from May 2020 to July 2021, the cash ratio increased significantly, reaching a high of 0.79 in October 2021. This substantial increase suggests that Target had significantly more cash on hand relative to its current liabilities during this period.
However, from July 2021 to April 2023, there was a notable decline in the cash ratio, reaching its lowest point of 0.04 in October 2022. This indicates a potential decrease in Target's ability to cover its short-term obligations solely with its cash reserves during this period.
In the latest reported quarter, the cash ratio improved to 0.20, suggesting that there was a relative increase in Target's ability to cover its current liabilities with its available cash.
Overall, the trend in Target Corporation's cash ratio indicates varying levels of liquidity and the company's ability to meet its short-term obligations with its cash holdings. It is important for stakeholders to monitor this ratio over time to assess the company's liquidity position and its ability to manage short-term financial commitments effectively.
Peer comparison
Feb 3, 2024