Target Corporation (TGT)

Interest coverage

Feb 1, 2025 Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021
Earnings before interest and tax (EBIT) US$ in thousands 5,566,000 5,799,000 3,896,000 9,328,000 6,523,000
Interest expense US$ in thousands 411,000 502,000 478,000 421,000 977,000
Interest coverage 13.54 11.55 8.15 22.16 6.68

February 1, 2025 calculation

Interest coverage = EBIT ÷ Interest expense
= $5,566,000K ÷ $411,000K
= 13.54

Interest coverage ratio measures a company's ability to meet its interest obligations using its operating income. For Target Corporation, the interest coverage has fluctuated over the years. In January 30, 2021, the interest coverage was 6.68, indicating that the company's operating income was able to cover its interest expenses approximately 6.68 times. This ratio improved significantly to 22.16 in January 29, 2022, suggesting a much stronger ability to cover interest payments. However, in January 28, 2023, the interest coverage decreased to 8.15, indicating a slight decline in the company's ability to cover interest expenses. The ratio increased in February 3, 2024, to 11.55, showing improved coverage compared to the previous period. By February 1, 2025, the interest coverage further increased to 13.54, indicating a healthy ability to meet interest obligations. Overall, the fluctuations in the interest coverage ratio for Target Corporation demonstrate variations in the company's operating performance and ability to service its debt obligations over the years.


See also:

Target Corporation Interest Coverage