Target Corporation (TGT)
Operating return on assets (Operating ROA)
| Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 5,566,000 | 5,964,000 | 6,113,000 | 5,675,000 | 5,707,000 | 5,001,000 | 4,706,000 | 3,830,000 | 3,848,000 | 4,784,000 | 5,772,000 | 7,918,000 | 8,946,000 | 8,687,000 | 8,612,000 | 8,445,000 | 6,539,000 | 5,901,000 | 4,968,000 | 3,992,000 |
| Total assets | US$ in thousands | 57,769,000 | 58,531,000 | 55,995,000 | 55,117,000 | 55,356,000 | 56,229,000 | 53,206,000 | 52,150,000 | 53,335,000 | 55,615,000 | 52,470,000 | 50,842,000 | 53,811,000 | 54,411,000 | 51,385,000 | 50,471,000 | 51,248,000 | 50,661,000 | 48,000,000 | 44,806,000 |
| Operating ROA | 9.63% | 10.19% | 10.92% | 10.30% | 10.31% | 8.89% | 8.84% | 7.34% | 7.21% | 8.60% | 11.00% | 15.57% | 16.62% | 15.97% | 16.76% | 16.73% | 12.76% | 11.65% | 10.35% | 8.91% |
February 1, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $5,566,000K ÷ $57,769,000K
= 9.63%
Target Corporation's operating return on assets (operating ROA) has exhibited fluctuations over the analyzed period. The operating ROA increased steadily from May 2, 2020, when it stood at 8.91%, to a peak of 16.76% on July 31, 2021. This upward trend indicated the company's ability to generate higher operating profits relative to its total assets.
However, after reaching its peak, the operating ROA started to decline, reaching 8.60% on October 29, 2022, before slightly recovering to 10.31% on February 3, 2024. The operating ROA has shown some volatility since then, fluctuating between 7.21% and 10.92%.
Overall, the operating ROA trend suggests that Target Corporation has been able to effectively utilize its assets to generate operating income, although the recent decline in the ratio may indicate potential challenges in maintaining or further improving profitability relative to the size of its asset base. Further analysis of the company's operational efficiency and profitability drivers would be necessary to fully understand the factors impacting the operating ROA in the recent periods.
Peer comparison
Feb 1, 2025