Target Corporation (TGT)
Quick 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 | 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 |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| 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 |
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 of Target Corporation has exhibited significant variability over the past several quarters, ranging from as low as 0.04 to as high as 0.86. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.
The trend in Target's quick ratio shows periods of both weakness and strength. In recent quarters, the quick ratio has generally improved from the low levels seen in the middle of 2022, reaching a high of 0.86 in August 2020. However, there have been fluctuations in between, with some periods showing a decline in the ratio.
A quick ratio below 1 indicates that Target may have difficulty meeting its short-term obligations solely with its liquid assets. A ratio above 1 is considered optimal as it suggests the company has enough liquid assets to cover its current liabilities.
It is essential for investors and stakeholders to closely monitor Target's quick ratio trends to assess its short-term liquidity position and ability to manage financial obligations effectively. Additionally, comparing Target's quick ratio with industry peers can provide insights into its liquidity strength relative to competitors.
Peer comparison
Feb 3, 2024