Target Corporation (TGT)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Based on the solvency ratios of Target Corporation, we can observe the following trends:
1. Debt-to-assets ratio: The company consistently maintains a debt-to-assets ratio of 0.00 across all the periods analyzed. This indicates that Target has not been relying on debt to finance its assets and has a strong ability to fund its operations using equity and retained earnings.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio for Target remains at 0.00 throughout the periods under review. This suggests that the company has not utilized debt as a significant source of capital and relies more on equity and internal funds.
3. Debt-to-equity ratio: The debt-to-equity ratio is also consistently at 0.00 for all the periods examined. This reaffirms that Target has not been heavily leveraging its operations with debt and has a capital structure skewed towards equity financing.
4. Financial leverage ratio: The financial leverage ratio shows some variability over time, ranging from 3.37 to 5.05. The ratio peaked at 5.05 and hit a low of 3.37, indicating fluctuations in the company's reliance on debt financing compared to equity. However, the fluctuations are within a reasonable range, suggesting that Target has been maintaining a manageable level of financial leverage.
In summary, Target Corporation demonstrates a strong solvency position with minimal debt usage, consistently low debt ratios, and a relatively stable financial leverage ratio. This implies that the company has a robust financial structure and is able to meet its obligations effectively while minimizing financial risk associated with high debt levels.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Target Corporation's interest coverage ratio has shown fluctuations over the past several quarters. The interest coverage ratio reflects the company's ability to meet its interest payment obligations based on its earnings before interest and taxes (EBIT).
Looking at the data provided, we can see that the interest coverage ratio has ranged from a low of 5.92 in January 2021 to a high of 22.16 in January 2022. The ratio has generally been above 8 in recent quarters, indicating that Target has been able to comfortably cover its interest expenses.
A higher interest coverage ratio is generally preferred as it indicates a stronger ability to meet interest payments. A ratio above 1 indicates that a company is generating enough operating income to cover its interest charges.
It's worth noting that a declining interest coverage ratio may indicate increasing financial risk for the company, as it could suggest that the company's earnings are not keeping pace with its interest expenses. However, fluctuations in the interest coverage ratio can also be influenced by factors such as changes in interest rates or the company's capital structure.
Overall, Target Corporation's interest coverage ratio has shown variability but has generally been at levels that suggest the company is effectively managing its interest obligations.