Target Corporation (TGT)
Return on total capital
| 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 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 5,799,000 | 5,078,000 | 4,770,000 | 3,886,000 | 3,896,000 | 4,845,000 | 5,827,000 | 7,972,000 | 9,328,000 | 9,043,000 | 8,957,000 | 8,794,000 | 6,523,000 | 5,857,000 | 4,949,000 | 3,975,000 | 4,679,000 | 4,634,000 | 4,446,000 | 4,246,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 13,432,000 | 12,514,000 | 11,990,000 | 11,605,000 | 11,232,000 | 11,019,000 | 10,592,000 | 10,774,000 | 12,827,000 | 13,803,000 | 14,860,000 | 14,959,000 | 14,440,000 | 13,319,000 | 12,578,000 | 11,169,000 | 11,833,000 | 11,545,000 | 11,836,000 | 11,117,000 |
| Return on total capital | 43.17% | 40.58% | 39.78% | 33.49% | 34.69% | 43.97% | 55.01% | 73.99% | 72.72% | 65.51% | 60.28% | 58.79% | 45.17% | 43.97% | 39.35% | 35.59% | 39.54% | 40.14% | 37.56% | 38.19% |
February 3, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $5,799,000K ÷ ($—K + $13,432,000K)
= 43.17%
Target Corporation's return on total capital has shown fluctuations over the periods analyzed. The return on total capital ranged from a low of 33.49% to a high of 73.99%, with an average of approximately 46.41%. The company's ability to generate returns on the total capital employed has generally been strong, with most values being above 40%.
The highest return on total capital of 73.99% was recorded in April 30, 2022, indicating the efficient utilization of both equity and debt to generate profits. However, there were periods, such as in August 1, 2020, where the return on total capital dropped to 35.59%, signaling potential challenges in optimizing capital deployment.
In the latest reported period, February 3, 2024, Target Corporation demonstrated a return on total capital of 43.17%, suggesting a healthy performance in generating profits relative to the total capital invested. The consistency of returns above 40% in most periods indicates the company's effectiveness in deploying capital to generate value for its stakeholders.
Overall, Target Corporation's return on total capital reflects a strong ability to generate profits relative to the capital employed, with some variability in performance across different reporting periods.
Peer comparison
Feb 3, 2024