Stock Analysis on Net

Target Corp. (NYSE:TGT)

$24.99

Return on Assets (ROA)
since 2005

Microsoft Excel

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Calculation

Target Corp., ROA, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2026-01-31), 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), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02), 10-K (reporting date: 2012-01-28), 10-K (reporting date: 2011-01-29), 10-K (reporting date: 2010-01-30), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-02-02), 10-K (reporting date: 2007-02-03), 10-K (reporting date: 2006-01-28), 10-K (reporting date: 2005-01-29).

1 US$ in millions


The Return on Assets (ROA) for the period examined demonstrates considerable fluctuation, though generally remains positive. Initial values indicate a strong performance, followed by periods of decline and subsequent recovery. A detailed examination reveals distinct phases in the company’s profitability relative to its asset base.

Initial Period (2005-2009)
From 2005 to 2009, ROA experienced a decline from 9.90% to 5.02%. While starting at a high point, the metric decreased steadily, suggesting a weakening in the efficiency of asset utilization or a reduction in net earnings. The year 2008 showed a slight improvement, but the downward trend resumed in 2009.
Recovery and Stability (2010-2013)
The period between 2010 and 2013 witnessed a recovery in ROA, increasing from 5.59% to 6.23%. This suggests improved profitability or more efficient asset management. The values remained relatively stable within this range, indicating a period of consistent, moderate performance.
Significant Volatility (2014-2016)
A period of significant volatility followed, with ROA plummeting to -3.95% in 2015 before rebounding sharply to 8.35% in 2016. The negative value in 2015 is attributable to a net loss, significantly impacting the ratio. The substantial recovery in 2016 indicates a return to profitability and improved asset utilization.
Recent Performance (2017-2025)
From 2017 through 2025, ROA generally trended upwards, with fluctuations. The metric ranged from 7.08% to a peak of 12.91% in 2020. This period demonstrates a generally improving ability to generate earnings from its asset base. The most recent values (2023-2025) show a slight decrease from the 2020 peak, but remain at a healthy level, hovering around 6-8%.

Overall, the ROA demonstrates a cyclical pattern. While the company experienced periods of lower profitability, it consistently recovered and, in recent years, achieved strong returns on its assets. The substantial increase in ROA in 2020 is a notable outlier, and further investigation into the factors driving this performance would be warranted. The recent slight decline from the 2020 peak does not necessarily indicate a negative trend, but warrants continued monitoring.


Comparison to Competitors


Comparison to Sector (Consumer Staples Distribution & Retail)


Comparison to Industry (Consumer Staples)