Target Corporation (TGT)
Financial leverage ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 55,356,000 | 53,335,000 | 53,811,000 | 51,248,000 | 42,779,000 |
| Total stockholders’ equity | US$ in thousands | 13,432,000 | 11,232,000 | 12,827,000 | 14,440,000 | 11,833,000 |
| Financial leverage ratio | 4.12 | 4.75 | 4.20 | 3.55 | 3.62 |
February 3, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $55,356,000K ÷ $13,432,000K
= 4.12
The financial leverage ratio of Target Corporation has fluctuated over the past five years. In fiscal year 2024, the ratio decreased to 4.12 from 4.75 in the previous year. This suggests that Target relied less on debt financing compared to the prior year. The decreasing trend in the financial leverage ratio is seen from 2022 to 2024, indicating a more conservative capital structure approach. However, it is important to note that the ratio in 2024 is still higher than the levels recorded in 2021 and 2020, which may indicate the company's continued reliance on debt to fund its operations and growth. Overall, the varying levels of the financial leverage ratio reflect changes in Target's debt utilization and capital structure decisions over the years.
Peer comparison
Feb 3, 2024