Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Target Corp., short-term (operating) activity 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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Target Corp. inventory turnover ratio improved from 2023 to 2024 but then deteriorated significantly from 2024 to 2025. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Target Corp. receivables turnover ratio improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025 not reaching 2023 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Target Corp. payables turnover ratio increased from 2023 to 2024 but then decreased significantly from 2024 to 2025. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Target Corp. number of days of inventory outstanding improved from 2023 to 2024 but then deteriorated significantly from 2024 to 2025. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Target Corp. number of days of payables outstanding decreased from 2023 to 2024 but then increased from 2024 to 2025 exceeding 2023 level. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. |
Inventory Turnover
Target Corp., inventory turnover 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) | |||||||
| Cost of sales | 76,502) | 77,828) | 82,306) | 74,963) | 66,177) | 54,864) | |
| Inventory | 12,740) | 11,886) | 13,499) | 13,902) | 10,653) | 8,992) | |
| Short-term Activity Ratio | |||||||
| Inventory turnover1 | 6.00 | 6.55 | 6.10 | 5.39 | 6.21 | 6.10 | |
| Benchmarks | |||||||
| Inventory Turnover, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 11.92 | 12.77 | 11.13 | 12.01 | 11.84 | |
| Walmart Inc. | 9.07 | 8.93 | 8.20 | 7.59 | 9.35 | 8.88 | |
| Inventory Turnover, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 9.25 | 8.75 | 7.96 | 9.41 | 9.05 | |
| Inventory Turnover, Industry | |||||||
| Consumer Staples | — | 8.01 | 7.60 | 7.08 | 8.15 | 7.71 | |
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
Inventory turnover = Cost of sales ÷ Inventory
= 76,502 ÷ 12,740 = 6.00
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Target Corp. inventory turnover ratio improved from 2023 to 2024 but then deteriorated significantly from 2024 to 2025. |
Receivables Turnover
Target Corp., receivables turnover 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 sales | 106,566) | 107,412) | 109,120) | 106,005) | 93,561) | 78,112) | |
| Accounts and other receivables | 998) | 891) | 1,169) | 835) | 631) | 498) | |
| Short-term Activity Ratio | |||||||
| Receivables turnover1 | 106.78 | 120.55 | 93.34 | 126.95 | 148.27 | 156.85 | |
| Benchmarks | |||||||
| Receivables Turnover, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 91.74 | 104.03 | 99.39 | 106.52 | 105.30 | |
| Walmart Inc. | 67.62 | 73.06 | 76.37 | 68.57 | 85.21 | 82.74 | |
| Receivables Turnover, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 80.57 | 83.67 | 78.94 | 93.95 | 91.37 | |
| Receivables Turnover, Industry | |||||||
| Consumer Staples | — | 32.35 | 32.56 | 31.53 | 34.96 | 33.86 | |
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
Receivables turnover = Net sales ÷ Accounts and other receivables
= 106,566 ÷ 998 = 106.78
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Target Corp. receivables turnover ratio improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025 not reaching 2023 level. |
Payables Turnover
Target Corp., payables turnover 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) | |||||||
| Cost of sales | 76,502) | 77,828) | 82,306) | 74,963) | 66,177) | 54,864) | |
| Accounts payable | 13,053) | 12,098) | 13,487) | 15,478) | 12,859) | 9,920) | |
| Short-term Activity Ratio | |||||||
| Payables turnover1 | 5.86 | 6.43 | 6.10 | 4.84 | 5.15 | 5.53 | |
| Benchmarks | |||||||
| Payables Turnover, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 11.45 | 12.16 | 11.17 | 10.49 | 10.23 | |
| Walmart Inc. | 8.72 | 8.63 | 8.63 | 7.76 | 8.55 | 8.40 | |
| Payables Turnover, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 8.95 | 8.96 | 7.94 | 8.40 | 8.36 | |
| Payables Turnover, Industry | |||||||
| Consumer Staples | — | 6.94 | 6.95 | 6.37 | 6.65 | 6.70 | |
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
Payables turnover = Cost of sales ÷ Accounts payable
= 76,502 ÷ 13,053 = 5.86
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Target Corp. payables turnover ratio increased from 2023 to 2024 but then decreased significantly from 2024 to 2025. |
Working Capital Turnover
Target Corp., working capital turnover 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) | |||||||
| Current assets | 19,454) | 17,498) | 17,846) | 21,573) | 20,756) | 12,902) | |
| Less: Current liabilities | 20,799) | 19,304) | 19,500) | 21,747) | 20,125) | 14,487) | |
| Working capital | (1,345) | (1,806) | (1,654) | (174) | 631) | (1,585) | |
| Net sales | 106,566) | 107,412) | 109,120) | 106,005) | 93,561) | 78,112) | |
| Short-term Activity Ratio | |||||||
| Working capital turnover1 | — | — | — | — | 148.27 | — | |
| Benchmarks | |||||||
| Working Capital Turnover, Competitors2 | |||||||
| Costco Wholesale Corp. | — | — | 103.53 | 319.10 | 3,000.81 | 49.82 | |
| Walmart Inc. | — | — | — | — | — | — | |
| Working Capital Turnover, Sector | |||||||
| Consumer Staples Distribution & Retail | — | — | — | — | — | — | |
| Working Capital Turnover, Industry | |||||||
| Consumer Staples | — | — | — | — | — | — | |
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
Working capital turnover = Net sales ÷ Working capital
= 106,566 ÷ -1,345 = —
2 Click competitor name to see calculations.
Average Inventory Processing Period
Target Corp., average inventory processing period 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 | |||||||
| Inventory turnover | 6.00 | 6.55 | 6.10 | 5.39 | 6.21 | 6.10 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average inventory processing period1 | 61 | 56 | 60 | 68 | 59 | 60 | |
| Benchmarks (no. days) | |||||||
| Average Inventory Processing Period, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 31 | 29 | 33 | 30 | 31 | |
| Walmart Inc. | 40 | 41 | 45 | 48 | 39 | 41 | |
| Average Inventory Processing Period, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 39 | 42 | 46 | 39 | 40 | |
| Average Inventory Processing Period, Industry | |||||||
| Consumer Staples | — | 46 | 48 | 52 | 45 | 47 | |
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 6.00 = 61
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Target Corp. number of days of inventory outstanding improved from 2023 to 2024 but then deteriorated significantly from 2024 to 2025. |
Average Receivable Collection Period
Target Corp., average receivable collection period 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 | |||||||
| Receivables turnover | 106.78 | 120.55 | 93.34 | 126.95 | 148.27 | 156.85 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average receivable collection period1 | 3 | 3 | 4 | 3 | 2 | 2 | |
| Benchmarks (no. days) | |||||||
| Average Receivable Collection Period, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 4 | 4 | 4 | 3 | 3 | |
| Walmart Inc. | 5 | 5 | 5 | 5 | 4 | 4 | |
| Average Receivable Collection Period, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 5 | 4 | 5 | 4 | 4 | |
| Average Receivable Collection Period, Industry | |||||||
| Consumer Staples | — | 11 | 11 | 12 | 10 | 11 | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 106.78 = 3
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. |
Operating Cycle
Target Corp., operating cycle calculation, comparison to benchmarks
No. days
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 61 | 56 | 60 | 68 | 59 | 60 | |
| Average receivable collection period | 3 | 3 | 4 | 3 | 2 | 2 | |
| Short-term Activity Ratio | |||||||
| Operating cycle1 | 64 | 59 | 64 | 71 | 61 | 62 | |
| Benchmarks | |||||||
| Operating Cycle, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 35 | 33 | 37 | 33 | 34 | |
| Walmart Inc. | 45 | 46 | 50 | 53 | 43 | 45 | |
| Operating Cycle, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 44 | 46 | 51 | 43 | 44 | |
| Operating Cycle, Industry | |||||||
| Consumer Staples | — | 57 | 59 | 64 | 55 | 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
Operating cycle = Average inventory processing period + Average receivable collection period
= 61 + 3 = 64
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. |
Average Payables Payment Period
Target Corp., average payables payment period 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 | |||||||
| Payables turnover | 5.86 | 6.43 | 6.10 | 4.84 | 5.15 | 5.53 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average payables payment period1 | 62 | 57 | 60 | 75 | 71 | 66 | |
| Benchmarks (no. days) | |||||||
| Average Payables Payment Period, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 32 | 30 | 33 | 35 | 36 | |
| Walmart Inc. | 42 | 42 | 42 | 47 | 43 | 43 | |
| Average Payables Payment Period, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 41 | 41 | 46 | 43 | 44 | |
| Average Payables Payment Period, Industry | |||||||
| Consumer Staples | — | 53 | 52 | 57 | 55 | 54 | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.86 = 62
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Target Corp. number of days of payables outstanding decreased from 2023 to 2024 but then increased from 2024 to 2025 exceeding 2023 level. |
Cash Conversion Cycle
Target Corp., cash conversion cycle calculation, comparison to benchmarks
No. days
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 61 | 56 | 60 | 68 | 59 | 60 | |
| Average receivable collection period | 3 | 3 | 4 | 3 | 2 | 2 | |
| Average payables payment period | 62 | 57 | 60 | 75 | 71 | 66 | |
| Short-term Activity Ratio | |||||||
| Cash conversion cycle1 | 2 | 2 | 4 | -4 | -10 | -4 | |
| Benchmarks | |||||||
| Cash Conversion Cycle, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 3 | 3 | 4 | -2 | -2 | |
| Walmart Inc. | 3 | 4 | 8 | 6 | 0 | 2 | |
| Cash Conversion Cycle, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 3 | 5 | 5 | 0 | 0 | |
| Cash Conversion Cycle, Industry | |||||||
| Consumer Staples | — | 4 | 7 | 7 | 0 | 4 | |
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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 61 + 3 – 62 = 2
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. |