Stock Analysis on Net

Target Corp. (NYSE:TGT)

Analysis of Solvency Ratios

Microsoft Excel

Solvency Ratios (Summary)

Target Corp., solvency ratios

Microsoft Excel
Feb 1, 2025 Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020
Debt Ratios
Debt to equity 1.09 1.19 1.44 1.07 0.88 0.97
Debt to equity (including operating lease liability) 1.36 1.46 1.70 1.28 1.05 1.18
Debt to capital 0.52 0.54 0.59 0.52 0.47 0.49
Debt to capital (including operating lease liability) 0.58 0.59 0.63 0.56 0.51 0.54
Debt to assets 0.28 0.29 0.30 0.25 0.25 0.27
Debt to assets (including operating lease liability) 0.34 0.35 0.36 0.31 0.29 0.33
Financial leverage 3.94 4.12 4.75 4.20 3.55 3.62
Coverage Ratios
Interest coverage 13.80 11.55 8.15 22.16 6.68 9.78
Fixed charge coverage 6.00 6.04 4.62 12.02 5.24 6.48

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).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Target Corp. debt to equity ratio improved from 2023 to 2024 and from 2024 to 2025.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Target Corp. debt to equity ratio (including operating lease liability) improved from 2023 to 2024 and from 2024 to 2025.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Target Corp. debt to capital ratio improved from 2023 to 2024 and from 2024 to 2025.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Target Corp. debt to capital ratio (including operating lease liability) improved from 2023 to 2024 and from 2024 to 2025.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Target Corp. debt to assets ratio improved from 2023 to 2024 and from 2024 to 2025.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Target Corp. debt to assets ratio (including operating lease liability) improved from 2023 to 2024 and from 2024 to 2025.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Target Corp. financial leverage ratio decreased from 2023 to 2024 and from 2024 to 2025.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Target Corp. interest coverage ratio improved from 2023 to 2024 and from 2024 to 2025.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Target Corp. fixed charge coverage ratio improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025.

Debt to Equity

Target Corp., debt to equity calculation, comparison to benchmarks

Microsoft Excel
Feb 1, 2025 Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020
Selected Financial Data (US$ in millions)
Current portion of long-term debt and other borrowings 1,636 1,116 130 171 1,144 161
Long-term debt and other borrowings, excluding current portion 14,304 14,922 16,009 13,549 11,536 11,338
Total debt 15,940 16,038 16,139 13,720 12,680 11,499
 
Shareholders’ investment 14,666 13,432 11,232 12,827 14,440 11,833
Solvency Ratio
Debt to equity1 1.09 1.19 1.44 1.07 0.88 0.97
Benchmarks
Debt to Equity, Competitors2
Costco Wholesale Corp. 0.31 0.31 0.40 0.49 0.45
Walmart Inc. 0.50 0.56 0.58 0.51 0.60 0.73
Debt to Equity, Sector
Consumer Staples Distribution & Retail 0.58 0.61 0.55 0.62 0.71
Debt to Equity, Industry
Consumer Staples 1.11 1.16 1.08 1.07 1.24

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).

1 2025 Calculation
Debt to equity = Total debt ÷ Shareholders’ investment
= 15,940 ÷ 14,666 = 1.09

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Target Corp. debt to equity ratio improved from 2023 to 2024 and from 2024 to 2025.

Debt to Equity (including Operating Lease Liability)

Target Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Feb 1, 2025 Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020
Selected Financial Data (US$ in millions)
Current portion of long-term debt and other borrowings 1,636 1,116 130 171 1,144 161
Long-term debt and other borrowings, excluding current portion 14,304 14,922 16,009 13,549 11,536 11,338
Total debt 15,940 16,038 16,139 13,720 12,680 11,499
Current portion of operating lease liabilities 353 329 296 254 211 200
Noncurrent operating lease liabilities 3,582 3,279 2,638 2,493 2,218 2,275
Total debt (including operating lease liability) 19,875 19,646 19,073 16,467 15,109 13,974
 
Shareholders’ investment 14,666 13,432 11,232 12,827 14,440 11,833
Solvency Ratio
Debt to equity (including operating lease liability)1 1.36 1.46 1.70 1.28 1.05 1.18
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Costco Wholesale Corp. 0.42 0.42 0.53 0.65 0.61
Walmart Inc. 0.66 0.73 0.77 0.69 0.78 0.97
Debt to Equity (including Operating Lease Liability), Sector
Consumer Staples Distribution & Retail 0.75 0.78 0.73 0.79 0.93
Debt to Equity (including Operating Lease Liability), Industry
Consumer Staples 1.23 1.28 1.20 1.19 1.39

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).

1 2025 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ investment
= 19,875 ÷ 14,666 = 1.36

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Target Corp. debt to equity ratio (including operating lease liability) improved from 2023 to 2024 and from 2024 to 2025.

Debt to Capital

Target Corp., debt to capital calculation, comparison to benchmarks

Microsoft Excel
Feb 1, 2025 Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020
Selected Financial Data (US$ in millions)
Current portion of long-term debt and other borrowings 1,636 1,116 130 171 1,144 161
Long-term debt and other borrowings, excluding current portion 14,304 14,922 16,009 13,549 11,536 11,338
Total debt 15,940 16,038 16,139 13,720 12,680 11,499
Shareholders’ investment 14,666 13,432 11,232 12,827 14,440 11,833
Total capital 30,606 29,470 27,371 26,547 27,120 23,332
Solvency Ratio
Debt to capital1 0.52 0.54 0.59 0.52 0.47 0.49
Benchmarks
Debt to Capital, Competitors2
Costco Wholesale Corp. 0.24 0.24 0.28 0.33 0.31
Walmart Inc. 0.33 0.36 0.37 0.34 0.38 0.42
Debt to Capital, Sector
Consumer Staples Distribution & Retail 0.37 0.38 0.36 0.38 0.41
Debt to Capital, Industry
Consumer Staples 0.53 0.54 0.52 0.52 0.55

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).

1 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 15,940 ÷ 30,606 = 0.52

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Target Corp. debt to capital ratio improved from 2023 to 2024 and from 2024 to 2025.

Debt to Capital (including Operating Lease Liability)

Target Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Feb 1, 2025 Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020
Selected Financial Data (US$ in millions)
Current portion of long-term debt and other borrowings 1,636 1,116 130 171 1,144 161
Long-term debt and other borrowings, excluding current portion 14,304 14,922 16,009 13,549 11,536 11,338
Total debt 15,940 16,038 16,139 13,720 12,680 11,499
Current portion of operating lease liabilities 353 329 296 254 211 200
Noncurrent operating lease liabilities 3,582 3,279 2,638 2,493 2,218 2,275
Total debt (including operating lease liability) 19,875 19,646 19,073 16,467 15,109 13,974
Shareholders’ investment 14,666 13,432 11,232 12,827 14,440 11,833
Total capital (including operating lease liability) 34,541 33,078 30,305 29,294 29,549 25,807
Solvency Ratio
Debt to capital (including operating lease liability)1 0.58 0.59 0.63 0.56 0.51 0.54
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Costco Wholesale Corp. 0.30 0.30 0.35 0.39 0.38
Walmart Inc. 0.40 0.42 0.43 0.41 0.44 0.49
Debt to Capital (including Operating Lease Liability), Sector
Consumer Staples Distribution & Retail 0.43 0.44 0.42 0.44 0.48
Debt to Capital (including Operating Lease Liability), Industry
Consumer Staples 0.55 0.56 0.54 0.54 0.58

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).

1 2025 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 19,875 ÷ 34,541 = 0.58

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Target Corp. debt to capital ratio (including operating lease liability) improved from 2023 to 2024 and from 2024 to 2025.

Debt to Assets

Target Corp., debt to assets calculation, comparison to benchmarks

Microsoft Excel
Feb 1, 2025 Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020
Selected Financial Data (US$ in millions)
Current portion of long-term debt and other borrowings 1,636 1,116 130 171 1,144 161
Long-term debt and other borrowings, excluding current portion 14,304 14,922 16,009 13,549 11,536 11,338
Total debt 15,940 16,038 16,139 13,720 12,680 11,499
 
Total assets 57,769 55,356 53,335 53,811 51,248 42,779
Solvency Ratio
Debt to assets1 0.28 0.29 0.30 0.25 0.25 0.27
Benchmarks
Debt to Assets, Competitors2
Costco Wholesale Corp. 0.11 0.11 0.13 0.14 0.15
Walmart Inc. 0.18 0.19 0.18 0.17 0.19 0.23
Debt to Assets, Sector
Consumer Staples Distribution & Retail 0.19 0.19 0.18 0.19 0.22
Debt to Assets, Industry
Consumer Staples 0.31 0.31 0.30 0.30 0.33

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).

1 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 15,940 ÷ 57,769 = 0.28

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Target Corp. debt to assets ratio improved from 2023 to 2024 and from 2024 to 2025.

Debt to Assets (including Operating Lease Liability)

Target Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Feb 1, 2025 Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020
Selected Financial Data (US$ in millions)
Current portion of long-term debt and other borrowings 1,636 1,116 130 171 1,144 161
Long-term debt and other borrowings, excluding current portion 14,304 14,922 16,009 13,549 11,536 11,338
Total debt 15,940 16,038 16,139 13,720 12,680 11,499
Current portion of operating lease liabilities 353 329 296 254 211 200
Noncurrent operating lease liabilities 3,582 3,279 2,638 2,493 2,218 2,275
Total debt (including operating lease liability) 19,875 19,646 19,073 16,467 15,109 13,974
 
Total assets 57,769 55,356 53,335 53,811 51,248 42,779
Solvency Ratio
Debt to assets (including operating lease liability)1 0.34 0.35 0.36 0.31 0.29 0.33
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Costco Wholesale Corp. 0.14 0.15 0.17 0.19 0.20
Walmart Inc. 0.23 0.24 0.24 0.23 0.25 0.31
Debt to Assets (including Operating Lease Liability), Sector
Consumer Staples Distribution & Retail 0.24 0.24 0.23 0.25 0.29
Debt to Assets (including Operating Lease Liability), Industry
Consumer Staples 0.34 0.34 0.33 0.33 0.37

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).

1 2025 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 19,875 ÷ 57,769 = 0.34

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Target Corp. debt to assets ratio (including operating lease liability) improved from 2023 to 2024 and from 2024 to 2025.

Financial Leverage

Target Corp., financial leverage calculation, comparison to benchmarks

Microsoft Excel
Feb 1, 2025 Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020
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
Benchmarks
Financial Leverage, Competitors2
Costco Wholesale Corp. 2.96 2.75 3.11 3.37 3.04
Walmart Inc. 2.87 3.01 3.17 2.94 3.12 3.17
Financial Leverage, Sector
Consumer Staples Distribution & Retail 3.12 3.24 3.11 3.21 3.20
Financial Leverage, Industry
Consumer Staples 3.62 3.71 3.59 3.59 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).

1 2025 Calculation
Financial leverage = Total assets ÷ Shareholders’ investment
= 57,769 ÷ 14,666 = 3.94

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Target Corp. financial leverage ratio decreased from 2023 to 2024 and from 2024 to 2025.

Interest Coverage

Target Corp., interest coverage calculation, comparison to benchmarks

Microsoft Excel
Feb 1, 2025 Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020
Selected Financial Data (US$ in millions)
Net earnings 4,091 4,138 2,780 6,946 4,368 3,281
Less: Discontinued operations, net of tax 12
Add: Income tax expense 1,170 1,159 638 1,961 1,178 921
Add: Net interest expense 411 502 478 421 977 477
Earnings before interest and tax (EBIT) 5,672 5,799 3,896 9,328 6,523 4,667
Solvency Ratio
Interest coverage1 13.80 11.55 8.15 22.16 6.68 9.78
Benchmarks
Interest Coverage, Competitors2
Costco Wholesale Corp. 58.63 54.04 50.62 40.06 34.54
Walmart Inc. 10.64 9.14 9.00 10.38 9.88 8.74
Interest Coverage, Sector
Consumer Staples Distribution & Retail 12.00 11.46 14.77 10.47 10.17
Interest Coverage, Industry
Consumer Staples 10.92 11.37 15.69 11.46 11.62

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).

1 2025 Calculation
Interest coverage = EBIT ÷ Interest expense
= 5,672 ÷ 411 = 13.80

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Target Corp. interest coverage ratio improved from 2023 to 2024 and from 2024 to 2025.

Fixed Charge Coverage

Target Corp., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel
Feb 1, 2025 Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020
Selected Financial Data (US$ in millions)
Net earnings 4,091 4,138 2,780 6,946 4,368 3,281
Less: Discontinued operations, net of tax 12
Add: Income tax expense 1,170 1,159 638 1,961 1,178 921
Add: Net interest expense 411 502 478 421 977 477
Earnings before interest and tax (EBIT) 5,672 5,799 3,896 9,328 6,523 4,667
Add: Operating lease cost 641 550 467 387 332 287
Earnings before fixed charges and tax 6,313 6,349 4,363 9,715 6,855 4,954
 
Net interest expense 411 502 478 421 977 477
Operating lease cost 641 550 467 387 332 287
Fixed charges 1,052 1,052 945 808 1,309 764
Solvency Ratio
Fixed charge coverage1 6.00 6.04 4.62 12.02 5.24 6.48
Benchmarks
Fixed Charge Coverage, Competitors2
Costco Wholesale Corp. 22.50 19.10 18.23 15.30 14.03
Walmart Inc. 6.18 5.40 4.84 5.38 5.16 4.82
Fixed Charge Coverage, Sector
Consumer Staples Distribution & Retail 6.71 5.95 7.41 5.88 5.60
Fixed Charge Coverage, Industry
Consumer Staples 7.34 7.38 9.06 7.46 7.19

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).

1 2025 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 6,313 ÷ 1,052 = 6.00

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Target Corp. fixed charge coverage ratio improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025.