Target Corporation (TGT)

Return on equity (ROE)

		Feb 1, 2025	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021
Net income	US$ in thousands	4,091,000	4,138,000	2,780,000	6,946,000	4,368,000
Total stockholders’ equity	US$ in thousands	14,666,000	13,432,000	11,232,000	12,827,000	14,440,000
ROE		27.89%	30.81%	24.75%	54.15%	30.25%

February 1, 2025 calculation

ROE = Net income ÷ Total stockholders’ equity
= $4,091,000K ÷ $14,666,000K
= 27.89%

Target Corporation's return on equity (ROE) has shown fluctuations over the past five years. In January 2021, Target's ROE stood at 30.25%, indicating that for every dollar of shareholders' equity, the company generated a profit of 30.25 cents. By January 2022, the ROE increased significantly to 54.15%, reflecting improved efficiency in utilizing equity to generate earnings. However, there was a notable decline by January 2023, with the ROE dropping to 24.75%, suggesting a decrease in profitability relative to shareholders' equity.

Subsequently, in February 2024, the ROE improved to 30.81%, indicating a recovery in profitability levels compared to the previous year. By February 2025, the ROE decreased slightly to 27.89%, signaling a dip in the company's ability to generate profits from shareholders' equity.

Overall, Target Corporation's ROE has displayed variations, with some years showing strong profitability in relation to equity, while others experienced declines. It is essential for stakeholders to closely monitor these fluctuations to assess the company's performance and its efficiency in utilizing equity to generate returns.