Target Corporation (TGT)

Interest coverage

Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020
Earnings before interest and tax (EBIT) US$ in thousands 5,799,000 3,896,000 9,328,000 6,523,000 4,679,000
Interest expense US$ in thousands 502,000 478,000 421,000 977,000 477,000
Interest coverage 11.55 8.15 22.16 6.68 9.81

February 3, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $5,799,000K ÷ $502,000K
= 11.55

The interest coverage ratio for Target Corporation has fluctuated over the past five years. In the most recent fiscal year ending February 3, 2024, the interest coverage ratio stood at 11.55, indicating that the company generated operating income 11.55 times greater than its interest expense. This suggests that Target has sufficient operational earnings to comfortably cover its interest obligations.

Comparing this to previous years, the interest coverage ratio was 8.15 in January 28, 2023, 22.16 in January 29, 2022, 6.68 in January 30, 2021, and 9.81 in February 1, 2020. The significant fluctuations in the ratio over these years may reflect changes in Target's financial performance, ability to service its debt, or fluctuations in interest rates.

Overall, the interest coverage ratio for Target Corporation has shown variability but has generally remained at levels that indicate the company's ability to meet its interest payment obligations comfortably. It is important for stakeholders to monitor this ratio over time to ensure the company's financial health and stability.


Peer comparison

Feb 3, 2024


See also:

Target Corporation Interest Coverage