Target Corporation (TGT)
Pretax margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 5,261,000 | 5,641,000 | 5,785,000 | 5,312,000 | 5,297,000 | 4,554,000 | 4,228,000 | 3,373,000 | 3,418,000 | 4,392,000 | 5,394,000 | 7,547,000 | 8,907,000 | 8,620,000 | 8,007,000 | 7,826,000 | 5,546,000 | 4,868,000 | 4,479,000 | 3,507,000 |
| Revenue (ttm) | US$ in thousands | 106,475,000 | 107,377,000 | 107,000,000 | 106,180,000 | 106,930,000 | 106,383,000 | 107,485,000 | 108,778,000 | 108,661,000 | 108,286,000 | 107,440,000 | 106,571,000 | 105,937,000 | 103,275,000 | 99,728,000 | 97,525,000 | 92,599,000 | 87,635,000 | 84,187,000 | 79,636,000 |
| Pretax margin | 4.94% | 5.25% | 5.41% | 5.00% | 4.95% | 4.28% | 3.93% | 3.10% | 3.15% | 4.06% | 5.02% | 7.08% | 8.41% | 8.35% | 8.03% | 8.02% | 5.99% | 5.55% | 5.32% | 4.40% |
February 1, 2025 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $5,261,000K ÷ $106,475,000K
= 4.94%
Target Corporation's pretax margin has shown fluctuations over the reported periods. The pretax margin ranged from a low of 3.15% on January 28, 2023, to a high of 8.41% on January 29, 2022. Generally, the pretax margin has been trending upwards from early 2020 to early 2022, indicating improving profitability before experiencing a slight decline in the most recent periods.
The pretax margin is an important metric as it indicates the company's efficiency in managing its operating expenses relative to its revenue before accounting for taxes. A higher pretax margin suggests that the company is able to generate more profit from its operations before tax expenses are accounted for.
The recent decrease in the pretax margin from 5.41% on August 3, 2024, to 4.94% on February 1, 2025, may raise concerns about the company's ability to maintain profitability levels. It would be important for Target Corporation to closely monitor its cost structure and revenue generation strategies to sustain and potentially improve its pretax margin in the future.
Peer comparison
Feb 1, 2025