Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Target Corp., liquidity ratios
Based on: 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), 10-K (reporting date: 2019-02-02).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Target Corp. current ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Target Corp. quick ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Target Corp. cash ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
Current Ratio
Target Corp., current ratio calculation, comparison to benchmarks
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 17,498) | 17,846) | 21,573) | 20,756) | 12,902) | 12,519) | |
| Current liabilities | 19,304) | 19,500) | 21,747) | 20,125) | 14,487) | 15,014) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 0.91 | 0.92 | 0.99 | 1.03 | 0.89 | 0.83 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Costco Wholesale Corp. | 0.97 | 1.07 | 1.02 | 1.00 | 1.13 | 1.01 | |
| Walmart Inc. | 0.83 | 0.82 | 0.93 | 0.97 | 0.79 | 0.80 | |
| Current Ratio, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 0.89 | 0.96 | 0.99 | 0.88 | — | |
| Current Ratio, Industry | |||||||
| Consumer Staples | — | 0.84 | 0.87 | 0.93 | 0.92 | — | |
Based on: 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), 10-K (reporting date: 2019-02-02).
1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= 17,498 ÷ 19,304 = 0.91
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Target Corp. current ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Quick Ratio
Target Corp., quick ratio calculation, comparison to benchmarks
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 3,805) | 2,229) | 5,911) | 8,511) | 2,577) | 1,556) | |
| Accounts and other receivables | 891) | 1,169) | 835) | 631) | 498) | 632) | |
| Vendor income receivable | 513) | 526) | 518) | 504) | 464) | 468) | |
| Total quick assets | 5,209) | 3,924) | 7,264) | 9,646) | 3,539) | 2,656) | |
| Current liabilities | 19,304) | 19,500) | 21,747) | 20,125) | 14,487) | 15,014) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 0.27 | 0.20 | 0.33 | 0.48 | 0.24 | 0.18 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Costco Wholesale Corp. | 0.39 | 0.52 | 0.42 | 0.47 | 0.60 | 0.47 | |
| Walmart Inc. | 0.20 | 0.18 | 0.26 | 0.26 | 0.20 | 0.18 | |
| Quick Ratio, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 0.26 | 0.31 | 0.34 | 0.29 | — | |
| Quick Ratio, Industry | |||||||
| Consumer Staples | — | 0.37 | 0.38 | 0.43 | 0.47 | — | |
Based on: 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), 10-K (reporting date: 2019-02-02).
1 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 5,209 ÷ 19,304 = 0.27
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Target Corp. quick ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
Cash Ratio
Target Corp., cash ratio calculation, comparison to benchmarks
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 3,805) | 2,229) | 5,911) | 8,511) | 2,577) | 1,556) | |
| Total cash assets | 3,805) | 2,229) | 5,911) | 8,511) | 2,577) | 1,556) | |
| Current liabilities | 19,304) | 19,500) | 21,747) | 20,125) | 14,487) | 15,014) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 0.20 | 0.11 | 0.27 | 0.42 | 0.18 | 0.10 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Costco Wholesale Corp. | 0.31 | 0.45 | 0.35 | 0.41 | 0.54 | 0.41 | |
| Walmart Inc. | 0.11 | 0.09 | 0.17 | 0.19 | 0.12 | 0.10 | |
| Cash Ratio, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 0.18 | 0.22 | 0.27 | 0.22 | — | |
| Cash Ratio, Industry | |||||||
| Consumer Staples | — | 0.22 | 0.23 | 0.30 | 0.33 | — | |
Based on: 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), 10-K (reporting date: 2019-02-02).
1 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 3,805 ÷ 19,304 = 0.20
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Target Corp. cash ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |