Target Corporation (TGT)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 55,356,000 | 56,229,000 | 53,206,000 | 52,150,000 | 53,335,000 | 55,615,000 | 52,470,000 | 50,842,000 | 53,811,000 | 54,411,000 | 51,385,000 | 50,471,000 | 51,248,000 | 50,661,000 | 48,000,000 | 44,806,000 | 42,779,000 | 43,741,000 | 41,566,000 | 40,619,000 |
| 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 |
| Financial leverage ratio | 4.12 | 4.49 | 4.44 | 4.49 | 4.75 | 5.05 | 4.95 | 4.72 | 4.20 | 3.94 | 3.46 | 3.37 | 3.55 | 3.80 | 3.82 | 4.01 | 3.62 | 3.79 | 3.51 | 3.65 |
February 3, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $55,356,000K ÷ $13,432,000K
= 4.12
Target Corporation's financial leverage ratio has experienced fluctuations over the past 20 quarters, ranging from a low of 3.46 to a high of 5.05. The ratio measures how much of the company's assets are financed by debt compared to equity, with a higher ratio indicating a higher level of debt relative to equity.
The trend in the financial leverage ratio shows that the company's leverage has been gradually increasing from the beginning of 2019, reaching a peak in late 2022. This increase suggests that Target has been relying more on debt to fund its operations and investments during this period.
However, from late 2022 to early 2024, there has been a decline in the financial leverage ratio, indicating a reduction in the company's reliance on debt financing. This may suggest that Target has been paying down debt or increasing its equity base to improve its financial stability and reduce the risk associated with high leverage.
Overall, Target Corporation's financial leverage ratio has shown variability over the past two years, with a general trend of increasing leverage followed by a recent decrease. Stakeholders should continue to monitor this ratio to assess the company's capital structure and financial risk profile.
Peer comparison
Feb 3, 2024