Target Corporation (TGT)
Quick ratio
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 20,799,000 | 19,304,000 | 19,500,000 | 21,747,000 | 20,125,000 |
| Quick ratio | 0.23 | 0.20 | 0.11 | 0.27 | 0.42 |
February 1, 2025 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($869,000K
+ $3,893,000K
+ $—K)
÷ $20,799,000K
= 0.23
The quick ratio of Target Corporation, a measure of its ability to meet its short-term liabilities with its most liquid assets, has shown a decreasing trend over the years. As of January 30, 2021, the quick ratio was 0.42, indicating that Target had $0.42 in liquid assets for every $1 of current liabilities. However, this ratio declined to 0.27 by January 29, 2022, suggesting a lower level of liquidity. Subsequently, as of January 28, 2023, the quick ratio fell sharply to 0.11, signifying a significant reduction in the company's ability to cover immediate obligations with liquid assets. Despite a slight improvement to 0.20 by February 3, 2024, and further to 0.23 by February 1, 2025, the quick ratio still remains below the ideal level of 1, indicating that Target may face challenges in meeting short-term obligations using its readily available assets. It is crucial for the company to closely monitor its liquidity position and take appropriate measures to strengthen its ability to address short-term financial commitments.
Peer comparison
Feb 1, 2025