Ratios (Summary)

Target Corp., debt and solvency ratios

 
Feb 1, 2014 Feb 2, 2013 Jan 28, 2012 Jan 29, 2011 Jan 30, 2010 Jan 31, 2009
Debt to equity 0.85 1.07 1.11 1.02 1.10 1.37
Debt to capital 0.46 0.52 0.52 0.50 0.52 0.58
Interest coverage 3.76 7.05 6.15 6.94 5.83 5.08

Source: Based on data from Target Corp. Annual Reports

Ratio Description The company
Debt-to-equity ratio A solvency ratio calculated as total debt divided by total shareholders' equity. Target Corp.'s debt-to-equity ratio improved from 2012 to 2013 and from 2013 to 2014.
Debt-to-capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders' equity. Target Corp.'s debt-to-capital ratio improved from 2012 to 2013 and from 2013 to 2014.
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Target Corp.'s interest coverage ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.

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Debt to Equity

 
Feb 1, 2014 Feb 2, 2013 Jan 28, 2012 Jan 29, 2011 Jan 30, 2010 Jan 31, 2009
Selected Financial Data (USD $ in millions)
Current portion of long-term debt and other borrowings 1,160  2,994  3,786  119  1,696  1,262 
Long-term debt and other borrowings, excluding current portion 12,622  14,654  13,697  15,607  15,118  17,490 
Total debt 13,782  17,648  17,483  15,726  16,814  18,752 
Shareholders' investment 16,231  16,558  15,821  15,487  15,347  13,712 
Debt to Equity, Comparison to Industry
Target Corp.1 0.85 1.07 1.11 1.02 1.10 1.37
Industry, Consumer Services 0.62 0.59 0.56 0.49 0.53

Source: Based on data from Target Corp. Annual Reports

2014 Calculations

1 Debt to equity = Total debt ÷ Shareholders' investment
= 13,782 ÷ 16,231 = 0.85

Ratio Description The company
Debt-to-equity ratio A solvency ratio calculated as total debt divided by total shareholders' equity. Target Corp.'s debt-to-equity ratio improved from 2012 to 2013 and from 2013 to 2014.

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Debt to Capital

 
Feb 1, 2014 Feb 2, 2013 Jan 28, 2012 Jan 29, 2011 Jan 30, 2010 Jan 31, 2009
Selected Financial Data (USD $ in millions)
Current portion of long-term debt and other borrowings 1,160  2,994  3,786  119  1,696  1,262 
Long-term debt and other borrowings, excluding current portion 12,622  14,654  13,697  15,607  15,118  17,490 
Total debt 13,782  17,648  17,483  15,726  16,814  18,752 
Shareholders' investment 16,231  16,558  15,821  15,487  15,347  13,712 
Total capital 30,013  34,206  33,304  31,213  32,161  32,464 
Debt to Capital, Comparison to Industry
Target Corp.1 0.46 0.52 0.52 0.50 0.52 0.58
Industry, Consumer Services 0.38 0.37 0.36 0.33 0.35

Source: Based on data from Target Corp. Annual Reports

2014 Calculations

1 Debt to capital = Total debt ÷ Total capital
= 13,782 ÷ 30,013 = 0.46

Ratio Description The company
Debt-to-capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders' equity. Target Corp.'s debt-to-capital ratio improved from 2012 to 2013 and from 2013 to 2014.

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Interest Coverage

 
Feb 1, 2014 Feb 2, 2013 Jan 28, 2012 Jan 29, 2011 Jan 30, 2010 Jan 31, 2009
Selected Financial Data (USD $ in millions)
Net earnings 1,971  2,999  2,929  2,920  2,488  2,214 
Add: Net interest expense 1,126  762  866  757  801  866 
Add: Income tax expense (benefit) 1,132  1,610  1,527  1,575  1,384  1,322 
Earnings before interest and tax (EBIT) 4,229  5,371  5,322  5,252  4,673  4,402 
Interest Coverage, Comparison to Industry
Target Corp.1 3.76 7.05 6.15 6.94 5.83 5.08
Industry, Consumer Services 10.23 9.31 9.51 8.53 6.93

Source: Based on data from Target Corp. Annual Reports

2014 Calculations

1 Interest coverage = EBIT ÷ Interest expense
= 4,229 ÷ 1,126 = 3.76

Ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Target Corp.'s interest coverage ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.

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