Target Corporation (TGT)
Solvency ratios
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.12 | 4.75 | 4.20 | 3.55 | 3.62 |
The solvency ratios of Target Corporation reflect a consistently conservative approach towards debt management over the past five years, as indicated by the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio all being at extremely low levels of 0.00 across the period. This suggests that the company has minimal reliance on debt funding in relation to its assets, capital structure, and equity base.
The trend in the financial leverage ratio, which indicates the level of financial risk taken on by the company, has seen some fluctuations. The ratio has ranged from 3.55 to 4.75 over the five-year period, ending at 4.12 as of February 3, 2024. This indicates that the company's financial leverage has decreased compared to the prior year but remains relatively stable.
Overall, Target Corporation's solvency ratios suggest a strong financial position with little reliance on debt to support its operations, and a prudent approach to managing financial risk over the years.
Coverage ratios
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 11.55 | 8.15 | 22.16 | 6.68 | 9.81 |
The interest coverage ratio for Target Corporation has fluctuated over the past five years, ranging from 6.68 in January 30, 2021, to a high of 22.16 in January 29, 2022. The ratio indicates the company's ability to meet its interest payments on outstanding debt using its earnings before interest and taxes (EBIT). Target Corporation's interest coverage has generally been at a healthy level, with the highest coverage in January 29, 2022, suggesting a strong ability to cover interest payments from its operating income. The ratio peaked in 2022, reflecting a period of robust earnings relative to interest expenses, providing a cushion against financial risk. However, there was a slight decline in the interest coverage in January 30, 2021, which may indicate a potential decrease in the company's ability to service its debt obligations from its operating earnings during that period. Overall, Target Corporation's interest coverage demonstrates a reasonable ability to cover its interest payments with its operating profits over the years, with some fluctuations.