Target Corporation (TGT)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 4,679,000 | 4,634,000 | 4,446,000 | 4,246,000 |
| Interest expense (ttm) | US$ in thousands | 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 | 477,000 | 469,000 | 471,000 | 466,000 |
| Interest coverage | 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 | 9.81 | 9.88 | 9.44 | 9.11 |
February 3, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $5,799,000K ÷ $502,000K
= 11.55
Target Corporation's interest coverage ratio has shown some fluctuations over the given period. The interest coverage ratio measures the company's ability to meet its interest obligations on outstanding debt. A higher ratio indicates a stronger ability to meet interest payments.
From February 2024 to May 2019, the interest coverage ratio ranged from a low of 5.92 to a high of 22.16. The ratio peaked in January 2022 at 22.16 before gradually declining. Overall, the trend shows that Target's ability to cover its interest expenses has been relatively strong, with the ratio consistently above 5. This indicates that Target has generated sufficient earnings to comfortably cover its interest payments.
It is worth noting that while there have been fluctuations in the interest coverage ratio, the general trend has been positive, reflecting Target's financial stability and ability to manage its debt obligations effectively.
Peer comparison
Feb 3, 2024