Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Target Corp., balance sheet: goodwill and intangible assets

US$ in millions

	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019
Goodwill	631)	631)	631)	631)	633)	633)
Intangible assets, net of accumulated amortization	8)	14)	25)	37)	53)	66)
Goodwill and intangible assets	639)	645)	656)	668)	686)	699)

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).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.
Intangible assets, net of accumulated amortization	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Target Corp. intangible assets, net of accumulated amortization decreased from 2022 to 2023 and from 2023 to 2024.
Goodwill and intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Target Corp. goodwill and intangible assets decreased from 2022 to 2023 and from 2023 to 2024.

Target Corp., adjustments to financial statements

US$ in millions

	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019
Adjustment to Total Assets
Total assets (as reported)	55,356)	53,335)	53,811)	51,248)	42,779)	41,290)
Less: Goodwill	631)	631)	631)	631)	633)	633)
Total assets (adjusted)	54,725)	52,704)	53,180)	50,617)	42,146)	40,657)
Adjustment to Shareholders’ Investment
Shareholders’ investment (as reported)	13,432)	11,232)	12,827)	14,440)	11,833)	11,297)
Less: Goodwill	631)	631)	631)	631)	633)	633)
Shareholders’ investment (adjusted)	12,801)	10,601)	12,196)	13,809)	11,200)	10,664)

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).

Target Corp., Financial Data: Reported vs. Adjusted

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Target Corp., adjusted financial ratios

	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019
Total Asset Turnover
Reported total asset turnover	1.91	2.02	1.94	1.80	1.80	1.80
Adjusted total asset turnover	1.93	2.04	1.97	1.83	1.83	1.83
Financial Leverage
Reported financial leverage	4.12	4.75	4.20	3.55	3.62	3.65
Adjusted financial leverage	4.28	4.97	4.36	3.67	3.76	3.81
Return on Equity (ROE)
Reported ROE	30.81%	24.75%	54.15%	30.25%	27.73%	26.00%
Adjusted ROE	32.33%	26.22%	56.95%	31.63%	29.29%	27.54%
Return on Assets (ROA)
Reported ROA	7.48%	5.21%	12.91%	8.52%	7.67%	7.11%
Adjusted ROA	7.56%	5.27%	13.06%	8.63%	7.78%	7.22%

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).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Target Corp. adjusted total asset turnover ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Target Corp. adjusted financial leverage ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Target Corp. adjusted ROE deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Target Corp. adjusted ROA deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Target Corp., Financial Ratios: Reported vs. Adjusted

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	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019
As Reported
Selected Financial Data (US$ in millions)
Sales	105,803)	107,588)	104,611)	92,400)	77,130)	74,433)
Total assets	55,356)	53,335)	53,811)	51,248)	42,779)	41,290)
Activity Ratio
Total asset turnover¹	1.91	2.02	1.94	1.80	1.80	1.80
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Sales	105,803)	107,588)	104,611)	92,400)	77,130)	74,433)
Adjusted total assets	54,725)	52,704)	53,180)	50,617)	42,146)	40,657)
Activity Ratio
Adjusted total asset turnover²	1.93	2.04	1.97	1.83	1.83	1.83

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).

2024 Calculations

¹ Total asset turnover = Sales ÷ Total assets
= 105,803 ÷ 55,356 = 1.91

² Adjusted total asset turnover = Sales ÷ Adjusted total assets
= 105,803 ÷ 54,725 = 1.93

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Target Corp. adjusted total asset turnover ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	55,356)	53,335)	53,811)	51,248)	42,779)	41,290)
Shareholders’ investment	13,432)	11,232)	12,827)	14,440)	11,833)	11,297)
Solvency Ratio
Financial leverage¹	4.12	4.75	4.20	3.55	3.62	3.65
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	54,725)	52,704)	53,180)	50,617)	42,146)	40,657)
Adjusted shareholders’ investment	12,801)	10,601)	12,196)	13,809)	11,200)	10,664)
Solvency Ratio
Adjusted financial leverage²	4.28	4.97	4.36	3.67	3.76	3.81

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).

2024 Calculations

¹ Financial leverage = Total assets ÷ Shareholders’ investment
= 55,356 ÷ 13,432 = 4.12

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ investment
= 54,725 ÷ 12,801 = 4.28

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Target Corp. adjusted financial leverage ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings	4,138)	2,780)	6,946)	4,368)	3,281)	2,937)
Shareholders’ investment	13,432)	11,232)	12,827)	14,440)	11,833)	11,297)
Profitability Ratio
ROE¹	30.81%	24.75%	54.15%	30.25%	27.73%	26.00%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net earnings	4,138)	2,780)	6,946)	4,368)	3,281)	2,937)
Adjusted shareholders’ investment	12,801)	10,601)	12,196)	13,809)	11,200)	10,664)
Profitability Ratio
Adjusted ROE²	32.33%	26.22%	56.95%	31.63%	29.29%	27.54%

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).

2024 Calculations

¹ ROE = 100 × Net earnings ÷ Shareholders’ investment
= 100 × 4,138 ÷ 13,432 = 30.81%

² Adjusted ROE = 100 × Net earnings ÷ Adjusted shareholders’ investment
= 100 × 4,138 ÷ 12,801 = 32.33%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Target Corp. adjusted ROE deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

	Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019
As Reported
Selected Financial Data (US$ in millions)
Net earnings	4,138)	2,780)	6,946)	4,368)	3,281)	2,937)
Total assets	55,356)	53,335)	53,811)	51,248)	42,779)	41,290)
Profitability Ratio
ROA¹	7.48%	5.21%	12.91%	8.52%	7.67%	7.11%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net earnings	4,138)	2,780)	6,946)	4,368)	3,281)	2,937)
Adjusted total assets	54,725)	52,704)	53,180)	50,617)	42,146)	40,657)
Profitability Ratio
Adjusted ROA²	7.56%	5.27%	13.06%	8.63%	7.78%	7.22%

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).

2024 Calculations

¹ ROA = 100 × Net earnings ÷ Total assets
= 100 × 4,138 ÷ 55,356 = 7.48%

² Adjusted ROA = 100 × Net earnings ÷ Adjusted total assets
= 100 × 4,138 ÷ 54,725 = 7.56%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Target Corp. adjusted ROA deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

Target Corp. (NYSE:TGT)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Target Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Target Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)