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: 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), 10-K (reporting date: 2019-02-02).
| 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 2022 to 2023 and from 2023 to 2024. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Target Corp. receivables turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Target Corp. payables turnover ratio increased from 2022 to 2023 and from 2023 to 2024. |
| 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 2022 to 2023 and from 2023 to 2024. |
| 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. | Target Corp. operating cycle improved from 2022 to 2023 and from 2023 to 2024. |
| 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 2022 to 2023 and from 2023 to 2024. |
| 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. | Target Corp. cash conversion cycle deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
Inventory Turnover
Target Corp., inventory turnover calculation, comparison to benchmarks
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cost of sales | 77,736) | 82,229) | 74,963) | 66,177) | 54,864) | 53,299) | |
| Inventory | 11,886) | 13,499) | 13,902) | 10,653) | 8,992) | 9,497) | |
| Short-term Activity Ratio | |||||||
| Inventory turnover1 | 6.54 | 6.09 | 5.39 | 6.21 | 6.10 | 5.61 | |
| Benchmarks | |||||||
| Inventory Turnover, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 12.77 | 11.13 | 12.01 | 11.84 | 11.66 | |
| Walmart Inc. | 8.93 | 8.20 | 7.59 | 9.35 | 8.88 | 8.70 | |
| Inventory Turnover, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 8.75 | 7.96 | 9.41 | 9.05 | 8.77 | |
| Inventory Turnover, Industry | |||||||
| Consumer Staples | — | 8.21 | 7.60 | 8.82 | 8.40 | 8.24 | |
Based on: 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), 10-K (reporting date: 2019-02-02).
1 2024 Calculation
Inventory turnover = Cost of sales ÷ Inventory
= 77,736 ÷ 11,886 = 6.54
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 2022 to 2023 and from 2023 to 2024. |
Receivables Turnover
Target Corp., receivables turnover calculation, comparison to benchmarks
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Sales | 105,803) | 107,588) | 104,611) | 92,400) | 77,130) | 74,433) | |
| Accounts and other receivables | 891) | 1,169) | 835) | 631) | 498) | 632) | |
| Short-term Activity Ratio | |||||||
| Receivables turnover1 | 118.75 | 92.03 | 125.28 | 146.43 | 154.88 | 117.77 | |
| Benchmarks | |||||||
| Receivables Turnover, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 104.03 | 99.39 | 106.52 | 105.30 | 97.30 | |
| Walmart Inc. | 73.06 | 76.37 | 68.57 | 85.21 | 82.74 | 81.22 | |
| Receivables Turnover, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 83.53 | 78.82 | 93.82 | 91.25 | 86.88 | |
| Receivables Turnover, Industry | |||||||
| Consumer Staples | — | 35.38 | 34.89 | 38.54 | 37.27 | 34.73 | |
Based on: 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), 10-K (reporting date: 2019-02-02).
1 2024 Calculation
Receivables turnover = Sales ÷ Accounts and other receivables
= 105,803 ÷ 891 = 118.75
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 deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level. |
Payables Turnover
Target Corp., payables turnover calculation, comparison to benchmarks
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cost of sales | 77,736) | 82,229) | 74,963) | 66,177) | 54,864) | 53,299) | |
| Accounts payable | 12,098) | 13,487) | 15,478) | 12,859) | 9,920) | 9,761) | |
| Short-term Activity Ratio | |||||||
| Payables turnover1 | 6.43 | 6.10 | 4.84 | 5.15 | 5.53 | 5.46 | |
| Benchmarks | |||||||
| Payables Turnover, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 12.16 | 11.17 | 10.49 | 10.23 | 11.38 | |
| Walmart Inc. | 8.63 | 8.63 | 7.76 | 8.55 | 8.40 | 8.19 | |
| Payables Turnover, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 8.95 | 7.94 | 8.40 | 8.36 | 8.34 | |
| Payables Turnover, Industry | |||||||
| Consumer Staples | — | 7.10 | 6.51 | 6.79 | 6.85 | 6.89 | |
Based on: 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), 10-K (reporting date: 2019-02-02).
1 2024 Calculation
Payables turnover = Cost of sales ÷ Accounts payable
= 77,736 ÷ 12,098 = 6.43
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 2022 to 2023 and from 2023 to 2024. |
Working Capital Turnover
Target Corp., working capital turnover calculation, comparison to benchmarks
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 17,498) | 17,846) | 21,573) | 20,756) | 12,902) | 12,519) | |
| Less: Current liabilities | 19,304) | 19,500) | 21,747) | 20,125) | 14,487) | 15,014) | |
| Working capital | (1,806) | (1,654) | (174) | 631) | (1,585) | (2,495) | |
| Sales | 105,803) | 107,588) | 104,611) | 92,400) | 77,130) | 74,433) | |
| Short-term Activity Ratio | |||||||
| Working capital turnover1 | — | — | — | 146.43 | — | — | |
| Benchmarks | |||||||
| Working Capital Turnover, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 103.53 | 319.10 | 3,000.81 | 49.82 | 602.22 | |
| Walmart Inc. | — | — | — | — | — | — | |
| Working Capital Turnover, Sector | |||||||
| Consumer Staples Distribution & Retail | — | — | — | — | — | — | |
| Working Capital Turnover, Industry | |||||||
| Consumer Staples | — | — | — | — | — | — | |
Based on: 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), 10-K (reporting date: 2019-02-02).
1 2024 Calculation
Working capital turnover = Sales ÷ Working capital
= 105,803 ÷ -1,806 = —
2 Click competitor name to see calculations.
Average Inventory Processing Period
Target Corp., average inventory processing period calculation, comparison to benchmarks
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Inventory turnover | 6.54 | 6.09 | 5.39 | 6.21 | 6.10 | 5.61 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average inventory processing period1 | 56 | 60 | 68 | 59 | 60 | 65 | |
| Benchmarks (no. days) | |||||||
| Average Inventory Processing Period, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 29 | 33 | 30 | 31 | 31 | |
| Walmart Inc. | 41 | 45 | 48 | 39 | 41 | 42 | |
| Average Inventory Processing Period, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 42 | 46 | 39 | 40 | 42 | |
| Average Inventory Processing Period, Industry | |||||||
| Consumer Staples | — | 44 | 48 | 41 | 43 | 44 | |
Based on: 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), 10-K (reporting date: 2019-02-02).
1 2024 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 6.54 = 56
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 2022 to 2023 and from 2023 to 2024. |
Average Receivable Collection Period
Target Corp., average receivable collection period calculation, comparison to benchmarks
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Receivables turnover | 118.75 | 92.03 | 125.28 | 146.43 | 154.88 | 117.77 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average receivable collection period1 | 3 | 4 | 3 | 2 | 2 | 3 | |
| Benchmarks (no. days) | |||||||
| Average Receivable Collection Period, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 4 | 4 | 3 | 3 | 4 | |
| Walmart Inc. | 5 | 5 | 5 | 4 | 4 | 4 | |
| Average Receivable Collection Period, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 4 | 5 | 4 | 4 | 4 | |
| Average Receivable Collection Period, Industry | |||||||
| Consumer Staples | — | 10 | 10 | 9 | 10 | 11 | |
Based on: 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), 10-K (reporting date: 2019-02-02).
1 2024 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 118.75 = 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 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 56 | 60 | 68 | 59 | 60 | 65 | |
| Average receivable collection period | 3 | 4 | 3 | 2 | 2 | 3 | |
| Short-term Activity Ratio | |||||||
| Operating cycle1 | 59 | 64 | 71 | 61 | 62 | 68 | |
| Benchmarks | |||||||
| Operating Cycle, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 33 | 37 | 33 | 34 | 35 | |
| Walmart Inc. | 46 | 50 | 53 | 43 | 45 | 46 | |
| Operating Cycle, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 46 | 51 | 43 | 44 | 46 | |
| Operating Cycle, Industry | |||||||
| Consumer Staples | — | 54 | 58 | 50 | 53 | 55 | |
Based on: 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), 10-K (reporting date: 2019-02-02).
1 2024 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 56 + 3 = 59
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. | Target Corp. operating cycle improved from 2022 to 2023 and from 2023 to 2024. |
Average Payables Payment Period
Target Corp., average payables payment period calculation, comparison to benchmarks
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Payables turnover | 6.43 | 6.10 | 4.84 | 5.15 | 5.53 | 5.46 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average payables payment period1 | 57 | 60 | 75 | 71 | 66 | 67 | |
| Benchmarks (no. days) | |||||||
| Average Payables Payment Period, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 30 | 33 | 35 | 36 | 32 | |
| Walmart Inc. | 42 | 42 | 47 | 43 | 43 | 45 | |
| Average Payables Payment Period, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 41 | 46 | 43 | 44 | 44 | |
| Average Payables Payment Period, Industry | |||||||
| Consumer Staples | — | 51 | 56 | 54 | 53 | 53 | |
Based on: 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), 10-K (reporting date: 2019-02-02).
1 2024 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 6.43 = 57
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 2022 to 2023 and from 2023 to 2024. |
Cash Conversion Cycle
Target Corp., cash conversion cycle calculation, comparison to benchmarks
No. days
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 56 | 60 | 68 | 59 | 60 | 65 | |
| Average receivable collection period | 3 | 4 | 3 | 2 | 2 | 3 | |
| Average payables payment period | 57 | 60 | 75 | 71 | 66 | 67 | |
| Short-term Activity Ratio | |||||||
| Cash conversion cycle1 | 2 | 4 | -4 | -10 | -4 | 1 | |
| Benchmarks | |||||||
| Cash Conversion Cycle, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 3 | 4 | -2 | -2 | 3 | |
| Walmart Inc. | 4 | 8 | 6 | 0 | 2 | 1 | |
| Cash Conversion Cycle, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 5 | 5 | 0 | 0 | 2 | |
| Cash Conversion Cycle, Industry | |||||||
| Consumer Staples | — | 3 | 2 | -4 | 0 | 2 | |
Based on: 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), 10-K (reporting date: 2019-02-02).
1 2024 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 56 + 3 – 57 = 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. | Target Corp. cash conversion cycle deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |