Target Corporation (TGT)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.91 | 0.86 | 0.83 | 0.88 | 0.92 | 0.86 | 0.82 | 0.87 | 0.99 | 0.97 | 1.04 | 1.07 | 1.03 | 1.05 | 1.11 | 1.01 | 0.89 | 0.83 | 0.84 | 0.88 |
| Quick 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 |
| 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 |
Target Corporation's liquidity ratios have fluctuated over the past few years. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has shown some variability but generally stayed below 1. This indicates that in most periods, Target may have had difficulty meeting its short-term liabilities with its current assets.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also been quite low, suggesting that Target may have had limited ability to pay off immediate obligations without relying on inventory.
The cash ratio, which is the most conservative liquidity measure as it considers only cash and cash equivalents, has been relatively consistent but still low overall. This implies that Target may have had a limited amount of cash on hand to cover its current liabilities, potentially indicating a need to improve cash management strategies.
Overall, Target Corporation's liquidity ratios suggest that the company may have faced challenges in meeting its short-term financial obligations in the periods analyzed. It may be beneficial for the company to focus on improving its liquidity position to ensure it can efficiently manage its cash flow and financial obligations.
See also:
Target Corporation Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 conversion cycle | days | -0.76 | 1.57 | 1.43 | 2.91 | 0.07 | 5.21 | 1.61 | 3.86 | -5.92 | -5.34 | -5.70 | -4.58 | -9.25 | -7.27 | -7.73 | -3.82 | -3.04 | 0.69 | -0.15 | 3.55 |
Target Corporation's cash conversion cycle has fluctuated over the past few quarters. The cash conversion cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
In the recent quarter ending February 3, 2024, Target Corporation had a negative cash conversion cycle of -0.76 days, indicating that the company was able to convert its resources into cash quickly and efficiently.
In the previous quarter ending October 28, 2023, the cash conversion cycle was 1.57 days, showing a slight increase in the time it took for Target to convert its investments into cash.
Overall, the company has experienced both positive and negative cash conversion cycles over the past few quarters, with some periods showing efficient cash management and others reflecting a longer turnaround time in converting resources into cash. Further analysis and comparison with industry benchmarks may provide more insights into Target Corporation's working capital management efficiency.