Stock Analysis on Net
Stock Analysis on Net

Target Corp. (NYSE:TGT)

Analysis of Property, Plant and Equipment

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Property, Plant and Equipment Disclosure

Target Corp., balance sheet: property, plant and equipment

US$ in millions

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Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Jan 30, 2016
Land 6,141  6,036  6,064  6,095  6,106  6,125 
Buildings and improvements 31,557  30,603  29,240  28,396  27,611  27,059 
Fixtures and equipment 5,914  6,083  5,912  5,623  5,503  5,347 
Computer hardware and software 2,765  2,692  2,544  2,645  2,651  2,617 
Construction-in-progress 780  533  460  440  200  315 
Property and equipment, gross 47,157  45,947  44,220  43,199  42,071  41,463 
Accumulated depreciation (20,278) (19,664) (18,687) (18,181) (17,413) (16,246)
Property and equipment, net 26,879  26,283  25,533  25,018  24,658  25,217 

Based on: 10-K (filing date: 2021-03-10), 10-K (filing date: 2020-03-11), 10-K (filing date: 2019-03-13), 10-K (filing date: 2018-03-14), 10-K (filing date: 2017-03-08), 10-K (filing date: 2016-03-11).

Item Description The company
Property and equipment, gross Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Target Corp.’s property and equipment, gross increased from 2019 to 2020 and from 2020 to 2021.
Property and equipment, net Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures. Target Corp.’s property and equipment, net increased from 2019 to 2020 and from 2020 to 2021.

Asset Age Ratios (Summary)

Target Corp., asset age ratios

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Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Jan 30, 2016
Average age ratio 49.44% 49.27% 48.98% 49.00% 48.42% 45.97%
Estimated total useful life (years) 16 15 16 15 16 16
Estimated age, time elapsed since purchase (years) 8 8 8 7 8 7
Estimated remaining life (years) 8 8 8 8 8 9

Based on: 10-K (filing date: 2021-03-10), 10-K (filing date: 2020-03-11), 10-K (filing date: 2019-03-13), 10-K (filing date: 2018-03-14), 10-K (filing date: 2017-03-08), 10-K (filing date: 2016-03-11).

Asset age ratio Description The company
Average age ratio As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company’s fixed asset base is old or new. Newer assets are likely to be more efficient. Target Corp.’s average age ratio of depreciable property, plant and equipment deteriorated from 2019 to 2020 and from 2020 to 2021.
Estimated total useful life Over longer time periods, this ratio is a useful measure of company’s depreciation policy and can be used for comparisons with competitors. Target Corp.’s estimated total useful life of depreciable property, plant and equipment decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
Estimated time elapsed since purchase The approximate age in years of a company’s fixed assets. Useful for comparison purposes. Target Corp.’s estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.
Estimated remaining life Target Corp.’s estimated remaining life of depreciable property, plant and equipment decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Average Age

Microsoft Excel LibreOffice Calc
Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Jan 30, 2016
Selected Financial Data (US$ in millions)
Accumulated depreciation 20,278  19,664  18,687  18,181  17,413  16,246 
Property and equipment, gross 47,157  45,947  44,220  43,199  42,071  41,463 
Land 6,141  6,036  6,064  6,095  6,106  6,125 
Asset Age Ratio
Average age1 49.44% 49.27% 48.98% 49.00% 48.42% 45.97%

Based on: 10-K (filing date: 2021-03-10), 10-K (filing date: 2020-03-11), 10-K (filing date: 2019-03-13), 10-K (filing date: 2018-03-14), 10-K (filing date: 2017-03-08), 10-K (filing date: 2016-03-11).

2021 Calculations

1 Average age = 100 × Accumulated depreciation ÷ (Property and equipment, gross – Land)
= 100 × 20,278 ÷ (47,1576,141) = 49.44%

Asset age ratio Description The company
Average age As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company’s fixed asset base is old or new. Newer assets are likely to be more efficient. Target Corp.’s average age ratio of depreciable property, plant and equipment deteriorated from 2019 to 2020 and from 2020 to 2021.

Estimated Total Useful Life

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Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Jan 30, 2016
Selected Financial Data (US$ in millions)
Property and equipment, gross 47,157  45,947  44,220  43,199  42,071  41,463 
Land 6,141  6,036  6,064  6,095  6,106  6,125 
Depreciation expense 2,500  2,591  2,460  2,429  2,280  2,191 
Asset Age Ratio (Years)
Estimated total useful life1 16 15 16 15 16 16

Based on: 10-K (filing date: 2021-03-10), 10-K (filing date: 2020-03-11), 10-K (filing date: 2019-03-13), 10-K (filing date: 2018-03-14), 10-K (filing date: 2017-03-08), 10-K (filing date: 2016-03-11).

2021 Calculations

1 Estimated total useful life = (Property and equipment, gross – Land) ÷ Depreciation expense
= (47,1576,141) ÷ 2,500 = 16

Asset age ratio Description The company
Estimated total useful life Over longer time periods, this ratio is a useful measure of company’s depreciation policy and can be used for comparisons with competitors. Target Corp.’s estimated total useful life of depreciable property, plant and equipment decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Estimated Age, Time Elapsed since Purchase

Microsoft Excel LibreOffice Calc
Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Jan 30, 2016
Selected Financial Data (US$ in millions)
Accumulated depreciation 20,278  19,664  18,687  18,181  17,413  16,246 
Depreciation expense 2,500  2,591  2,460  2,429  2,280  2,191 
Asset Age Ratio (Years)
Time elapsed since purchase1 8 8 8 7 8 7

Based on: 10-K (filing date: 2021-03-10), 10-K (filing date: 2020-03-11), 10-K (filing date: 2019-03-13), 10-K (filing date: 2018-03-14), 10-K (filing date: 2017-03-08), 10-K (filing date: 2016-03-11).

2021 Calculations

1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= 20,278 ÷ 2,500 = 8

Asset age ratio Description The company
Estimated time elapsed since purchase The approximate age in years of a company’s fixed assets. Useful for comparison purposes. Target Corp.’s estimated time elapsed since purchase of depreciable property, plant and equipment improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021.

Estimated Remaining Life

Microsoft Excel LibreOffice Calc
Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Jan 30, 2016
Selected Financial Data (US$ in millions)
Property and equipment, net 26,879  26,283  25,533  25,018  24,658  25,217 
Land 6,141  6,036  6,064  6,095  6,106  6,125 
Depreciation expense 2,500  2,591  2,460  2,429  2,280  2,191 
Asset Age Ratio (Years)
Estimated remaining life1 8 8 8 8 8 9

Based on: 10-K (filing date: 2021-03-10), 10-K (filing date: 2020-03-11), 10-K (filing date: 2019-03-13), 10-K (filing date: 2018-03-14), 10-K (filing date: 2017-03-08), 10-K (filing date: 2016-03-11).

2021 Calculations

1 Estimated remaining life = (Property and equipment, net – Land) ÷ Depreciation expense
= (26,8796,141) ÷ 2,500 = 8

Asset age ratio Description The company
Estimated remaining life Target Corp.’s estimated remaining life of depreciable property, plant and equipment decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.