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Target Corp. (TGT) | Liquidity Analysis

Liquidity ratios measure the company's ability to meet its short-term obligations.


Ratios (Summary)

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Target Corp., liquidity ratios

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    Jan 29, 2011 Jan 30, 2010 Jan 31, 2009 Feb 2, 2008 Feb 3, 2007 Jan 28, 2006
Current ratio
Quick ratio
Cash ratio

Source: Based on data from Target Corp. Annual Reports

Ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Target Corp.'s current ratio deteriorated from 2009 to 2010 but then improved from 2010 to 2011 exceeding 2009 level.
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Target Corp.'s quick ratio deteriorated from 2009 to 2010 and from 2010 to 2011.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Target Corp.'s cash ratio improved from 2009 to 2010 but then slightly deteriorated from 2010 to 2011.

Current Ratio

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    Jan 29, 2011 Jan 30, 2010 Jan 31, 2009 Feb 2, 2008 Feb 3, 2007 Jan 28, 2006
  Selected Financial Data (USD $ in millions)
Current assets
Current liabilities
  Current Ratio, Comparison to Industry
Target Corp.1
  Industry, Consumer Services

Source: Based on data from Target Corp. Annual Reports

2011 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= ÷ =

Ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Target Corp.'s current ratio deteriorated from 2009 to 2010 but then improved from 2010 to 2011 exceeding 2009 level.

Quick Ratio

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    Jan 29, 2011 Jan 30, 2010 Jan 31, 2009 Feb 2, 2008 Feb 3, 2007 Jan 28, 2006
  Selected Financial Data (USD $ in millions)
Cash and cash equivalents
Marketable securities
Credit card receivables, net of allowance
Total quick assets
Current liabilities
  Quick Ratio, Comparison to Industry
Target Corp.1
  Industry, Consumer Services

Source: Based on data from Target Corp. Annual Reports

2011 Calculations

1 Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =

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.'s quick ratio deteriorated from 2009 to 2010 and from 2010 to 2011.

Cash Ratio

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    Jan 29, 2011 Jan 30, 2010 Jan 31, 2009 Feb 2, 2008 Feb 3, 2007 Jan 28, 2006
  Selected Financial Data (USD $ in millions)
Cash and cash equivalents
Marketable securities
Total cash assets
Current liabilities
  Cash Ratio, Comparison to Industry
Target Corp.1
  Industry, Consumer Services

Source: Based on data from Target Corp. Annual Reports

2011 Calculations

1 Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =

Ratio Description The company
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Target Corp.'s cash ratio improved from 2009 to 2010 but then slightly deteriorated from 2010 to 2011.

February 7, 2012

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