Target Corporation (TGT)
Profitability ratios
Return on sales
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 5.17% | 4.79% | 3.06% | 8.30% | 5.43% |
| Operating profit margin | 5.22% | 5.34% | 3.54% | 8.44% | 7.10% |
| Pretax margin | 4.94% | 4.95% | 3.15% | 8.41% | 6.02% |
| Net profit margin | 3.84% | 3.87% | 2.56% | 6.56% | 4.74% |
Based on the provided data, we can analyze the profitability ratios of Target Corporation over a period of five years from January 30, 2021, to February 1, 2025.
1. Gross Profit Margin:
- The gross profit margin of Target Corporation has fluctuated over the years, ranging from 3.06% to 8.30%.
- In general, the company's efficiency in generating profits from sales after deducting the cost of goods sold has varied, with the highest margin observed in January 29, 2022.
2. Operating Profit Margin:
- The operating profit margin of Target Corporation has also shown variability, with a range of 3.54% to 8.44%.
- This ratio reflects the company's ability to generate profits from its core operations, indicating fluctuations in operational efficiency.
3. Pre-Tax Margin:
- The pre-tax margin shows the profitability of Target Corporation before tax expenses. It has ranged between 3.15% and 8.41%.
- This ratio demonstrates the company's ability to generate profits before accounting for taxes and reflects changes in pre-tax profitability over the years.
4. Net Profit Margin:
- The net profit margin, which represents the bottom line profitability after all expenses, has varied from 2.56% to 6.56%.
- This ratio indicates the company's efficiency in generating profits that ultimately reach shareholders.
Overall, the profitability ratios of Target Corporation exhibit fluctuating trends over the years, reflecting changes in operational efficiency, cost management, and overall profitability. Further analysis and comparison with industry benchmarks could provide additional insights into the company's financial performance and competitiveness.
Return on investment
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.63% | 10.31% | 7.21% | 16.62% | 12.76% |
| Return on assets (ROA) | 7.08% | 7.48% | 5.21% | 12.91% | 8.52% |
| Return on total capital | 37.95% | 43.17% | 34.69% | 72.72% | 45.17% |
| Return on equity (ROE) | 27.89% | 30.81% | 24.75% | 54.15% | 30.25% |
Based on the provided data, I have analyzed the profitability ratios of Target Corporation for each year from January 30, 2021, to February 1, 2025:
1. Operating Return on Assets (Operating ROA):
- The Operating ROA has shown fluctuations over the years, starting at 12.76% on January 30, 2021, increasing to 16.62% on January 29, 2022, and then declining to 7.21% on January 28, 2023. It experienced a slight uptick to 10.31% on February 3, 2024, but dropped to 9.63% by February 1, 2025. This ratio indicates how efficiently Target is generating operating income from its assets.
2. Return on Assets (ROA):
- The ROA also displayed variability, beginning at 8.52% on January 30, 2021, rising to 12.91% on January 29, 2022, and then falling to 5.21% on January 28, 2023. There was a minor increase to 7.48% on February 3, 2024, but a slight decrease to 7.08% by February 1, 2025. ROA reflects the overall profitability of the company relative to its total assets.
3. Return on Total Capital:
- The Return on Total Capital ratio illustrates a similar pattern of fluctuation, with values starting at 45.17% on January 30, 2021, surging to 72.72% on January 29, 2022, and subsequently dropping to 34.69% on January 28, 2023. The ratio then increased to 43.17% on February 3, 2024, before declining to 37.95% by February 1, 2025. This metric evaluates the return earned on all capital invested in the company.
4. Return on Equity (ROE):
- Lastly, the ROE figures also varied throughout the years, commencing at 30.25% on January 30, 2021, peaking at 54.15% on January 29, 2022, decreasing to 24.75% on January 28, 2023, and then recovering to 30.81% on February 3, 2024. However, ROE dropped slightly to 27.89% by February 1, 2025. ROE measures the profitability generated for each dollar of common equity shareholders have invested in the company.
In summary, the profitability ratios of Target Corporation have shown fluctuations over the years, reflecting changes in the company's operational efficiency, asset utilization, capital management, and shareholder value creation. It is essential for stakeholders to monitor these ratios to assess the company's financial performance and sustainability over time.