Ratios (Summary)

Target Corp., profitability ratios

 
Feb 1, 2014 Feb 2, 2013 Jan 28, 2012 Jan 29, 2011 Jan 30, 2010 Jan 31, 2009
Return on Sales
Gross profit margin 29.53% 29.73% 30.10% 30.49% 30.54% 29.78%
Operating profit margin 5.83% 7.46% 7.77% 7.98% 7.37% 7.00%
Net profit margin 2.72% 4.17% 4.28% 4.44% 3.92% 3.52%
Return on Investment
Return on equity (ROE) 12.14% 18.11% 18.51% 18.85% 16.21% 16.15%
Return on assets (ROA) 4.42% 6.23% 6.28% 6.68% 5.59% 5.02%

Source: Based on data from Target Corp. Annual Reports

Ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Target Corp.'s gross profit margin deteriorated from 2012 to 2013 and from 2013 to 2014.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Target Corp.'s operating profit margin deteriorated from 2012 to 2013 and from 2013 to 2014.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Target Corp.'s net profit margin deteriorated from 2012 to 2013 and from 2013 to 2014.
ROE A profitability ratio calculated as net income divided by shareholders' equity. Target Corp.'s ROE deteriorated from 2012 to 2013 and from 2013 to 2014.
ROA A profitability ratio calculated as net income divided by total assets. Target Corp.'s ROA deteriorated from 2012 to 2013 and from 2013 to 2014.

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Gross Profit Margin

 
Feb 1, 2014 Feb 2, 2013 Jan 28, 2012 Jan 29, 2011 Jan 30, 2010 Jan 31, 2009
Selected Financial Data (USD $ in millions)
Gross margin 21,436  21,392  20,606  20,061  19,373  18,727 
Sales 72,596  71,960  68,466  65,786  63,435  62,884 
Gross profit margin1 29.53% 29.73% 30.10% 30.49% 30.54% 29.78%

Source: Based on data from Target Corp. Annual Reports

2014 Calculations

1 Gross profit margin = 100 × Gross margin ÷ Sales
= 100 × 21,436 ÷ 72,596 = 29.53%

Ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Target Corp.'s gross profit margin deteriorated from 2012 to 2013 and from 2013 to 2014.

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Operating Profit Margin

 
Feb 1, 2014 Feb 2, 2013 Jan 28, 2012 Jan 29, 2011 Jan 30, 2010 Jan 31, 2009
Selected Financial Data (USD $ in millions)
Earnings before interest expense and income taxes 4,229  5,371  5,322  5,252  4,673  4,402 
Sales 72,596  71,960  68,466  65,786  63,435  62,884 
Operating Profit Margin, Comparison to Industry
Target Corp.1 5.83% 7.46% 7.77% 7.98% 7.37% 7.00%
Industry, Consumer Services –% 9.13% 8.85% 9.13% 8.69% 7.18%

Source: Based on data from Target Corp. Annual Reports

2014 Calculations

1 Operating profit margin = 100 × Earnings before interest expense and income taxes ÷ Sales
= 100 × 4,229 ÷ 72,596 = 5.83%

Ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Target Corp.'s operating profit margin deteriorated from 2012 to 2013 and from 2013 to 2014.

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Net Profit Margin

 
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 
Sales 72,596  71,960  68,466  65,786  63,435  62,884 
Net Profit Margin, Comparison to Industry
Target Corp.1 2.72% 4.17% 4.28% 4.44% 3.92% 3.52%
Industry, Consumer Services –% 5.83% 5.21% 5.53% 5.14% 4.37%

Source: Based on data from Target Corp. Annual Reports

2014 Calculations

1 Net profit margin = 100 × Net earnings ÷ Sales
= 100 × 1,971 ÷ 72,596 = 2.72%

Ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Target Corp.'s net profit margin deteriorated from 2012 to 2013 and from 2013 to 2014.

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Return on Equity (ROE)

 
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 
Shareholders' investment 16,231  16,558  15,821  15,487  15,347  13,712 
ROE, Comparison to Industry
Target Corp.1 12.14% 18.11% 18.51% 18.85% 16.21% 16.15%
Industry, Consumer Services –% 17.78% 15.63% 15.92% 13.88% 12.36%

Source: Based on data from Target Corp. Annual Reports

2014 Calculations

1 ROE = 100 × Net earnings ÷ Shareholders' investment
= 100 × 1,971 ÷ 16,231 = 12.14%

Ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders' equity. Target Corp.'s ROE deteriorated from 2012 to 2013 and from 2013 to 2014.

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Return on Assets (ROA)

 
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 
Total assets 44,553  48,163  46,630  43,705  44,533  44,106 
ROA, Comparison to Industry
Target Corp.1 4.42% 6.23% 6.28% 6.68% 5.59% 5.02%
Industry, Consumer Services –% 7.34% 6.49% 6.83% 6.44% 5.62%

Source: Based on data from Target Corp. Annual Reports

2014 Calculations

1 ROA = 100 × Net earnings ÷ Total assets
= 100 × 1,971 ÷ 44,553 = 4.42%

Ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Target Corp.'s ROA deteriorated from 2012 to 2013 and from 2013 to 2014.

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