Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Target Corp., adjustments to financial statements

US$ in millions

	Feb 1, 2025	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Adjustment to Total Assets
Total assets (as reported)	57,769)	55,356)	53,335)	53,811)	51,248)	42,779)
Less: Goodwill	631)	631)	631)	631)	631)	633)
Total assets (adjusted)	57,138)	54,725)	52,704)	53,180)	50,617)	42,146)
Adjustment to Shareholders’ Investment
Shareholders’ investment (as reported)	14,666)	13,432)	11,232)	12,827)	14,440)	11,833)
Less: Goodwill	631)	631)	631)	631)	631)	633)
Shareholders’ investment (adjusted)	14,035)	12,801)	10,601)	12,196)	13,809)	11,200)

Based on: 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01).

Target Corp., Financial Data: Reported vs. Adjusted

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Target Corp., adjusted financial ratios

	Feb 1, 2025	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Total Asset Turnover
Reported total asset turnover	1.84	1.94	2.05	1.97	1.83	1.83
Adjusted total asset turnover	1.87	1.96	2.07	1.99	1.85	1.85
Financial Leverage
Reported financial leverage	3.94	4.12	4.75	4.20	3.55	3.62
Adjusted financial leverage	4.07	4.28	4.97	4.36	3.67	3.76
Return on Equity (ROE)
Reported ROE	27.89%	30.81%	24.75%	54.15%	30.25%	27.73%
Adjusted ROE	29.15%	32.33%	26.22%	56.95%	31.63%	29.29%
Return on Assets (ROA)
Reported ROA	7.08%	7.48%	5.21%	12.91%	8.52%	7.67%
Adjusted ROA	7.16%	7.56%	5.27%	13.06%	8.63%	7.78%

Based on: 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Target Corp. adjusted total asset turnover ratio deteriorated from 2023 to 2024 and from 2024 to 2025.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Target Corp. adjusted financial leverage ratio decreased from 2023 to 2024 and from 2024 to 2025.
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Target Corp. adjusted ROE improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025 not reaching 2023 level.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Target Corp. adjusted ROA improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025.

Target Corp., Financial Ratios: Reported vs. Adjusted

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	Feb 1, 2025	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
As Reported
Selected Financial Data (US$ in millions)
Net sales	106,566)	107,412)	109,120)	106,005)	93,561)	78,112)
Total assets	57,769)	55,356)	53,335)	53,811)	51,248)	42,779)
Activity Ratio
Total asset turnover¹	1.84	1.94	2.05	1.97	1.83	1.83
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net sales	106,566)	107,412)	109,120)	106,005)	93,561)	78,112)
Adjusted total assets	57,138)	54,725)	52,704)	53,180)	50,617)	42,146)
Activity Ratio
Adjusted total asset turnover²	1.87	1.96	2.07	1.99	1.85	1.85

Based on: 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01).

2025 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 106,566 ÷ 57,769 = 1.84

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 106,566 ÷ 57,138 = 1.87

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Target Corp. adjusted total asset turnover ratio deteriorated from 2023 to 2024 and from 2024 to 2025.

	Feb 1, 2025	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets	57,769)	55,356)	53,335)	53,811)	51,248)	42,779)
Shareholders’ investment	14,666)	13,432)	11,232)	12,827)	14,440)	11,833)
Solvency Ratio
Financial leverage¹	3.94	4.12	4.75	4.20	3.55	3.62
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	57,138)	54,725)	52,704)	53,180)	50,617)	42,146)
Adjusted shareholders’ investment	14,035)	12,801)	10,601)	12,196)	13,809)	11,200)
Solvency Ratio
Adjusted financial leverage²	4.07	4.28	4.97	4.36	3.67	3.76

Based on: 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01).

2025 Calculations

¹ Financial leverage = Total assets ÷ Shareholders’ investment
= 57,769 ÷ 14,666 = 3.94

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ investment
= 57,138 ÷ 14,035 = 4.07

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Target Corp. adjusted financial leverage ratio decreased from 2023 to 2024 and from 2024 to 2025.

	Feb 1, 2025	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
As Reported
Selected Financial Data (US$ in millions)
Net earnings	4,091)	4,138)	2,780)	6,946)	4,368)	3,281)
Shareholders’ investment	14,666)	13,432)	11,232)	12,827)	14,440)	11,833)
Profitability Ratio
ROE¹	27.89%	30.81%	24.75%	54.15%	30.25%	27.73%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net earnings	4,091)	4,138)	2,780)	6,946)	4,368)	3,281)
Adjusted shareholders’ investment	14,035)	12,801)	10,601)	12,196)	13,809)	11,200)
Profitability Ratio
Adjusted ROE²	29.15%	32.33%	26.22%	56.95%	31.63%	29.29%

Based on: 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01).

2025 Calculations

¹ ROE = 100 × Net earnings ÷ Shareholders’ investment
= 100 × 4,091 ÷ 14,666 = 27.89%

² Adjusted ROE = 100 × Net earnings ÷ Adjusted shareholders’ investment
= 100 × 4,091 ÷ 14,035 = 29.15%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Target Corp. adjusted ROE improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025 not reaching 2023 level.

	Feb 1, 2025	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
As Reported
Selected Financial Data (US$ in millions)
Net earnings	4,091)	4,138)	2,780)	6,946)	4,368)	3,281)
Total assets	57,769)	55,356)	53,335)	53,811)	51,248)	42,779)
Profitability Ratio
ROA¹	7.08%	7.48%	5.21%	12.91%	8.52%	7.67%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net earnings	4,091)	4,138)	2,780)	6,946)	4,368)	3,281)
Adjusted total assets	57,138)	54,725)	52,704)	53,180)	50,617)	42,146)
Profitability Ratio
Adjusted ROA²	7.16%	7.56%	5.27%	13.06%	8.63%	7.78%

Based on: 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01).

2025 Calculations

¹ ROA = 100 × Net earnings ÷ Total assets
= 100 × 4,091 ÷ 57,769 = 7.08%

² Adjusted ROA = 100 × Net earnings ÷ Adjusted total assets
= 100 × 4,091 ÷ 57,138 = 7.16%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Target Corp. adjusted ROA improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025.

Target Corp. (NYSE:TGT)

Analysis of Goodwill and Intangible Assets

Adjustments to Financial Statements: Removal of Goodwill

Target Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Target Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)