Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Target Corp., profitability 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Target Corp. gross profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Target Corp. operating profit margin ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Target Corp. net profit margin ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Target Corp. ROE deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Target Corp. ROA deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
Gross Profit Margin
Target Corp., gross profit margin 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) | |||||||
| Gross margin | 28,067) | 25,359) | 29,648) | 26,223) | 22,266) | 21,134) | |
| Sales | 105,803) | 107,588) | 104,611) | 92,400) | 77,130) | 74,433) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 26.53% | 23.57% | 28.34% | 28.38% | 28.87% | 28.39% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Costco Wholesale Corp. | 10.92% | 10.57% | 10.48% | 11.13% | 11.20% | 11.02% | |
| Walmart Inc. | 23.73% | 23.46% | 24.44% | 24.30% | 24.10% | 24.50% | |
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
Gross profit margin = 100 × Gross margin ÷ Sales
= 100 × 28,067 ÷ 105,803 = 26.53%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Target Corp. gross profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
Operating Profit Margin
Target Corp., operating profit margin 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) | |||||||
| Operating income | 5,707) | 3,848) | 8,946) | 6,539) | 4,658) | 4,110) | |
| Sales | 105,803) | 107,588) | 104,611) | 92,400) | 77,130) | 74,433) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 5.39% | 3.58% | 8.55% | 7.08% | 6.04% | 5.52% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Costco Wholesale Corp. | 3.72% | 3.41% | 3.50% | 3.49% | 3.33% | 3.17% | |
| Walmart Inc. | 4.20% | 3.37% | 4.57% | 4.06% | 3.96% | 4.30% | |
| Operating Profit Margin, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 3.41% | 4.77% | 4.26% | 4.03% | — | |
| Operating Profit Margin, Industry | |||||||
| Consumer Staples | — | 7.32% | 8.45% | 8.49% | 8.18% | — | |
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
Operating profit margin = 100 × Operating income ÷ Sales
= 100 × 5,707 ÷ 105,803 = 5.39%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Target Corp. operating profit margin ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
Net Profit Margin
Target Corp., net profit margin 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) | |||||||
| Net earnings | 4,138) | 2,780) | 6,946) | 4,368) | 3,281) | 2,937) | |
| Sales | 105,803) | 107,588) | 104,611) | 92,400) | 77,130) | 74,433) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 3.91% | 2.58% | 6.64% | 4.73% | 4.25% | 3.95% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Costco Wholesale Corp. | 2.95% | 2.65% | 2.62% | 2.61% | 2.45% | 2.45% | |
| Walmart Inc. | 2.41% | 1.93% | 2.41% | 2.43% | 2.86% | 1.31% | |
| Net Profit Margin, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 2.18% | 2.96% | 2.73% | 2.92% | — | |
| Net Profit Margin, Industry | |||||||
| Consumer Staples | — | 5.47% | 6.12% | 6.21% | 6.23% | — | |
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
Net profit margin = 100 × Net earnings ÷ Sales
= 100 × 4,138 ÷ 105,803 = 3.91%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Target Corp. net profit margin ratio deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
Return on Equity (ROE)
Target Corp., ROE 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) | |||||||
| Net earnings | 4,138) | 2,780) | 6,946) | 4,368) | 3,281) | 2,937) | |
| Shareholders’ investment | 13,432) | 11,232) | 12,827) | 14,440) | 11,833) | 11,297) | |
| Profitability Ratio | |||||||
| ROE1 | 30.81% | 24.75% | 54.15% | 30.25% | 27.73% | 26.00% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Costco Wholesale Corp. | 31.19% | 25.11% | 28.31% | 28.51% | 21.89% | 24.00% | |
| Walmart Inc. | 18.50% | 15.23% | 16.42% | 16.69% | 19.93% | 9.20% | |
| ROE, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 18.37% | 22.67% | 20.26% | 21.15% | — | |
| ROE, Industry | |||||||
| Consumer Staples | — | 30.71% | 32.10% | 31.40% | 30.98% | — | |
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
ROE = 100 × Net earnings ÷ Shareholders’ investment
= 100 × 4,138 ÷ 13,432 = 30.81%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Target Corp. ROE deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
Return on Assets (ROA)
Target Corp., ROA 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) | |||||||
| Net earnings | 4,138) | 2,780) | 6,946) | 4,368) | 3,281) | 2,937) | |
| Total assets | 55,356) | 53,335) | 53,811) | 51,248) | 42,779) | 41,290) | |
| Profitability Ratio | |||||||
| ROA1 | 7.48% | 5.21% | 12.91% | 8.52% | 7.67% | 7.11% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Costco Wholesale Corp. | 10.55% | 9.12% | 9.11% | 8.45% | 7.20% | 8.06% | |
| Walmart Inc. | 6.15% | 4.80% | 5.58% | 5.35% | 6.29% | 3.04% | |
| ROA, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 5.68% | 7.29% | 6.30% | 6.62% | — | |
| ROA, Industry | |||||||
| Consumer Staples | — | 8.28% | 8.95% | 8.75% | 8.24% | — | |
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
ROA = 100 × Net earnings ÷ Total assets
= 100 × 4,138 ÷ 55,356 = 7.48%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Target Corp. ROA deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |