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: 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).
| 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 improved from 2023 to 2024 and from 2024 to 2025. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Target Corp. operating profit margin ratio improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Target Corp. net profit margin ratio improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Target Corp. ROE improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Target Corp. ROA improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025. |
Gross Profit Margin
Target Corp., gross profit margin calculation, comparison to benchmarks
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Gross margin | 30,064) | 29,584) | 26,814) | 31,042) | 27,384) | 23,248) | |
| Net sales | 106,566) | 107,412) | 109,120) | 106,005) | 93,561) | 78,112) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 28.21% | 27.54% | 24.57% | 29.28% | 29.27% | 29.76% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 10.92% | 10.57% | 10.48% | 11.13% | 11.20% | |
| Walmart Inc. | 24.13% | 23.73% | 23.46% | 24.44% | 24.30% | 24.10% | |
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
Gross profit margin = 100 × Gross margin ÷ Net sales
= 100 × 30,064 ÷ 106,566 = 28.21%
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 improved from 2023 to 2024 and from 2024 to 2025. |
Operating Profit Margin
Target Corp., operating profit margin calculation, comparison to benchmarks
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Operating income | 5,566) | 5,707) | 3,848) | 8,946) | 6,539) | 4,658) | |
| Net sales | 106,566) | 107,412) | 109,120) | 106,005) | 93,561) | 78,112) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 5.22% | 5.31% | 3.53% | 8.44% | 6.99% | 5.96% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 3.72% | 3.41% | 3.50% | 3.49% | 3.33% | |
| Walmart Inc. | 4.35% | 4.20% | 3.37% | 4.57% | 4.06% | 3.96% | |
| Operating Profit Margin, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 4.20% | 3.40% | 4.76% | 4.26% | 4.03% | |
| Operating Profit Margin, Industry | |||||||
| Consumer Staples | — | 7.96% | 7.31% | 8.44% | 8.48% | 8.17% | |
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
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 5,566 ÷ 106,566 = 5.22%
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 improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025. |
Net Profit Margin
Target Corp., net profit margin calculation, comparison to benchmarks
| 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) | |
| Net sales | 106,566) | 107,412) | 109,120) | 106,005) | 93,561) | 78,112) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 3.84% | 3.85% | 2.55% | 6.55% | 4.67% | 4.20% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 2.95% | 2.65% | 2.62% | 2.61% | 2.45% | |
| Walmart Inc. | 2.88% | 2.41% | 1.93% | 2.41% | 2.43% | 2.86% | |
| Net Profit Margin, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 2.70% | 2.18% | 2.95% | 2.72% | 2.91% | |
| Net Profit Margin, Industry | |||||||
| Consumer Staples | — | 5.69% | 5.47% | 6.11% | 6.21% | 6.22% | |
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
Net profit margin = 100 × Net earnings ÷ Net sales
= 100 × 4,091 ÷ 106,566 = 3.84%
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 improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025. |
Return on Equity (ROE)
Target Corp., ROE calculation, comparison to benchmarks
| 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) | |
| 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% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 31.19% | 25.11% | 28.31% | 28.51% | 21.89% | |
| Walmart Inc. | 21.36% | 18.50% | 15.23% | 16.42% | 16.69% | 19.93% | |
| ROE, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 22.34% | 18.37% | 22.67% | 20.26% | 21.15% | |
| ROE, Industry | |||||||
| Consumer Staples | — | 32.18% | 30.71% | 32.10% | 31.40% | 30.98% | |
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
ROE = 100 × Net earnings ÷ Shareholders’ investment
= 100 × 4,091 ÷ 14,666 = 27.89%
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 improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025. |
Return on Assets (ROA)
Target Corp., ROA calculation, comparison to benchmarks
| 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) | |
| 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% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 10.55% | 9.12% | 9.11% | 8.45% | 7.20% | |
| Walmart Inc. | 7.45% | 6.15% | 4.80% | 5.58% | 5.35% | 6.29% | |
| ROA, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 7.15% | 5.68% | 7.29% | 6.30% | 6.62% | |
| ROA, Industry | |||||||
| Consumer Staples | — | 8.89% | 8.28% | 8.95% | 8.75% | 8.24% | |
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
ROA = 100 × Net earnings ÷ Total assets
= 100 × 4,091 ÷ 57,769 = 7.08%
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 improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025. |