Target Corporation (TGT)
Quick ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 19,304,000 | 19,500,000 | 21,747,000 | 20,125,000 | 14,487,000 |
| Quick ratio | 0.20 | 0.11 | 0.27 | 0.42 | 0.18 |
February 3, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($908,000K
+ $2,897,000K
+ $—K)
÷ $19,304,000K
= 0.20
The quick ratio measures a company's ability to pay its short-term obligations using its most liquid assets. A higher quick ratio indicates a better ability to cover short-term liabilities.
Target Corporation's quick ratio has fluctuated over the past five years, ranging from 0.11 to 0.42. The quick ratio of 0.20 as of Feb 3, 2024, indicates that for every $1 of current liabilities, the company has $0.20 in highly liquid assets available to cover those obligations.
Compared to the previous year, the quick ratio has improved, reflecting an increase in the proportion of liquid assets relative to current liabilities. However, it is lower than the quick ratio reported for Jan 29, 2022, when it was 0.27. This suggests that Target Corporation may have had a decrease in its liquid assets relative to its short-term liabilities in the most recent fiscal year.
It is important for investors and creditors to monitor the trend of Target Corporation's quick ratio over time to assess the company's liquidity position and ability to meet its short-term financial obligations.
Peer comparison
Feb 3, 2024