Target Corporation (TGT)
Interest coverage
| Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 5,595,000 | 6,021,000 | 6,195,000 | 5,773,000 | 5,799,000 | 5,078,000 | 4,770,000 | 3,886,000 | 3,896,000 | 4,845,000 | 5,827,000 | 7,972,000 | 9,328,000 | 9,043,000 | 8,957,000 | 8,794,000 | 6,523,000 | 5,857,000 | 4,949,000 | 3,975,000 |
| Interest expense (ttm) | US$ in thousands | 411,000 | 428,000 | 430,000 | 461,000 | 502,000 | 524,000 | 542,000 | 513,000 | 478,000 | 453,000 | 433,000 | 425,000 | 421,000 | 423,000 | 950,000 | 968,000 | 977,000 | 989,000 | 470,000 | 468,000 |
| Interest coverage | 13.61 | 14.07 | 14.41 | 12.52 | 11.55 | 9.69 | 8.80 | 7.58 | 8.15 | 10.70 | 13.46 | 18.76 | 22.16 | 21.38 | 9.43 | 9.08 | 6.68 | 5.92 | 10.53 | 8.49 |
February 1, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $5,595,000K ÷ $411,000K
= 13.61
Target Corporation's interest coverage ratio has shown fluctuations over the time period indicated in the data. The interest coverage ratio represents the company's ability to cover its interest expenses with its operating income.
In May 2020, the interest coverage ratio was 8.49, indicating that Target's operating income was 8.49 times its interest expenses. This ratio improved to 10.53 by August 2020, demonstrating an increase in the company's ability to cover its interest costs. However, the ratio declined to 5.92 by October 2020, suggesting a weakening in Target's ability to cover interest payments.
Subsequently, the interest coverage ratio improved, reaching a high of 22.16 in January 2022 and then fluctuating between 7.58 to 14.41 from April 2022 to August 2024. This variability indicates changes in Target's operating performance and its ability to service its debt obligations.
Overall, Target's interest coverage ratio has shown some volatility, but generally, it has remained at acceptable levels, reflecting the company's ability to generate sufficient operating income to cover its interest expenses. Investors and creditors typically monitor the interest coverage ratio to assess a company's financial health and ability to meet its debt obligations.
Peer comparison
Feb 1, 2025