Analysis of Debt
Total Debt (Carrying Amount)
Target Corp., balance sheet: debt
US$ in millions
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).
The data reveals changes in the company’s debt composition and total debt over a six-year period. There is a clear distinction between the current portion of long-term debt and the non-current portion, each exhibiting different trends.
- Current Portion of Long-Term Debt and Other Borrowings
- This category shows notable volatility across the years. It started at 161 million USD in early 2020, peaked sharply at 1,144 million USD by early 2021, then declined to 171 million USD in early 2022 and remained relatively low at 130 million USD in early 2023. However, it surged again significantly to 1,116 million USD in early 2024, and further increased to 1,636 million USD by early 2025. The pattern indicates episodic increases followed by substantial reductions, suggesting intermittent refinancing or reclassification of debt into current liabilities.
- Long-Term Debt and Other Borrowings, Excluding Current Portion
- The long-term portion excluding the current installment shows a generally increasing trend from 11,338 million USD in early 2020 to a peak of 16,009 million USD in early 2023. However, after this peak, the long-term borrowings declined to 14,922 million USD in early 2024 and further to 14,304 million USD in early 2025. This suggests an accumulation of long-term debt through 2023 followed by gradual repayments or adjustments reducing the long-term liability.
- Total Long-Term Debt and Other Borrowings, Including Current Portion
- The aggregate total debt, combining both current and long-term portions, rises from 11,499 million USD in early 2020 to a high of 16,139 million USD in early 2023. Subsequent years show a slight decline but the total remains considerably elevated relative to the initial year, standing at 15,940 million USD in early 2025. This overall increase reflects a strategic growth in total borrowings, with some post-peak moderation observed in the most recent periods.
In summary, the data depicts a debt structure characterized by fluctuating short-term liabilities on top of a generally increasing long-term debt until early 2023. Following this peak, there is evidence of debt reduction efforts, predominantly in the non-current segment, while current portions exhibit sharp increases potentially linked to upcoming maturities or refinancing activities. The total debt balance remains significantly higher than the starting point across the timeframe analyzed.
Total Debt (Fair Value)
| Feb 1, 2025 | |
|---|---|
| Selected Financial Data (US$ in millions) | |
| Notes and debentures | 12,953) |
| Finance lease liabilities | 2,161) |
| Total long-term debt and other borrowings, including current portion (fair value) | 15,114) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.95 |
Based on: 10-K (reporting date: 2025-02-01).
Weighted-average Interest Rate on Debt
Weighted average interest rate on long-term debt and other borrowings: 3.77%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 2.70% | 4,671) | 126) | |
| 4.10% | 3,965) | 163) | |
| 6.80% | 938) | 64) | |
| 4.00% | 1,089) | 44) | |
| 3.80% | 1,120) | 43) | |
| 3.90% | 2,121) | 83) | |
| 3.88% | 2,161) | 84) | |
| Total | 16,065) | 605) | |
| 3.77% | |||
Based on: 10-K (reporting date: 2025-02-01).
1 US$ in millions
2 Weighted-average interest rate = 100 × 605 ÷ 16,065 = 3.77%