Target Corporation (TGT)
Return on total capital
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 5,799,000 | 3,896,000 | 9,328,000 | 6,523,000 | 4,679,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 13,432,000 | 11,232,000 | 12,827,000 | 14,440,000 | 11,833,000 |
| Return on total capital | 43.17% | 34.69% | 72.72% | 45.17% | 39.54% |
February 3, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $5,799,000K ÷ ($—K + $13,432,000K)
= 43.17%
Target Corporation's return on total capital has fluctuated over the past five years. The company's return on total capital was 43.17% as of February 3, 2024, a significant increase from the previous year's 34.69%. This indicates that Target generated a higher return relative to its capital invested in the most recent fiscal year.
Looking further back, in January 2022, Target achieved a notably high return on total capital of 72.72%, showing the company's ability to efficiently utilize its capital to generate profits. However, this figure decreased to 45.17% in January 2021, before slightly improving to 39.54% in February 2020.
Overall, Target Corporation has demonstrated strong performance in generating returns on its total capital over the years, with fluctuations reflecting changes in the company's operational efficiency and profitability. Continued monitoring of this metric can provide insights into Target's financial health and effectiveness in utilizing its invested capital.
Peer comparison
Feb 3, 2024