Target Corp. (NYSE:TGT)

Asset Turnover

The reported and adjusted total asset turnover ratios demonstrate an overall increasing trend from 1.83 in early 2020 to a peak of approximately 2.05 in early 2023. This indicates improved efficiency in generating sales from assets during this period. However, following this peak, both metrics show a decline to around 1.84-1.85 by early 2025, suggesting a slight reduction in asset utilization efficiency in the most recent years.

Debt to Equity

Reported debt to equity fluctuates, decreasing from 0.97 in 2020 to 0.88 in 2021, then rising sharply to 1.44 in 2023 before gradually decreasing to 1.09 by 2025. The adjusted ratio follows a similar pattern but with slightly higher absolute values. This volatility indicates varying leverage strategies, with a substantial increase in reliance on debt relative to equity around 2022-2023, followed by a moderated approach thereafter.

Debt to Capital

Both reported and adjusted debt to capital ratios show an overall increase from approximately 0.49-0.52 in 2020 to about 0.59 in 2023, followed by marginal decreases to around 0.52-0.54 by 2025. This suggests a temporary elevation in the proportion of debt financing within the capital structure, aligning with the debt to equity observations.

Financial Leverage

The reported financial leverage ratio rises from 3.62 in 2020 to a peak of 4.75 in 2023, then declines to 3.94 by 2025. The adjusted leverage follows a similar pattern but with lower figures. This indicates increased use of debt and other liabilities relative to equity until 2023, then a partial reduction in leverage.

Net Profit Margin

Both reported and adjusted net profit margins generally rise from 4.2%-4.33% in 2020 to their highest points in 2022 at 6.55%-7.24%. A sharp decline is noted in 2023, falling to below 3.5%, followed by a recovery to around 3.67%-4.09% in 2024-2025. This pattern reflects profitability challenges in 2023, possibly from increased costs or market conditions, with partial recovery afterwards.

Return on Equity (ROE)

ROE exhibits a dramatic increase, particularly in 2022 where it surpasses 50% both reported and adjusted, indicating strong profitability relative to equity in that year. However, post-2022, the ROE contracts to about 24.75%-26.05% in 2023 and stabilizes near 23%-30% in subsequent years. The spike may correlate with changes in leverage or profit margin during 2022, followed by normalization.

Return on Assets (ROA)

ROA trends upward strongly through 2022, peaking at 14.26% adjusted, suggesting enhanced efficiency in asset utilization for generating net profit. This figure declines sharply to lower single digits in 2023 and stabilizes near 6.7%-7.9% in 2024-2025, consistent with the pattern seen in net profit margin and asset turnover.

The data reveals notable trends in sales, asset levels, and asset utilization over the examined years.

Net Sales

Net sales exhibited a strong upward trajectory from 2020 to 2023, increasing from 78,112 million US dollars in 2020 to a peak of 109,120 million in 2023. However, following this peak, net sales showed a slight decline in the subsequent years, registering 107,412 million in 2024 and further dipping slightly to 106,566 million in 2025. This pattern indicates robust growth for several years followed by a mild deceleration or stabilization in recent periods.

Total Assets and Adjusted Total Assets

Total assets grew steadily throughout the entire period, rising from 42,779 million US dollars in 2020 to 57,769 million in 2025. The adjusted total assets mirrored this trend precisely, suggesting consistency between reported and adjusted figures. This steady asset growth suggests ongoing investment and expansion of the asset base across the years.

Reported and Adjusted Total Asset Turnover

The reported total asset turnover ratio remained stable at 1.83 in both 2020 and 2021, then increased notably to 1.97 in 2022 and further to 2.05 in 2023. This trend indicates improved efficiency in utilizing assets to generate sales during this period. However, following the peak in 2023, the turnover ratio declined to 1.94 in 2024 and decreased again to near the initial levels at 1.84 in 2025. The adjusted total asset turnover ratio followed an almost identical pattern, reinforcing the reliability of this finding.

Overall Insights

The period from 2020 through 2023 was characterized by strong growth in net sales, steady asset accumulation, and enhanced asset utilization efficiency. In the two years following 2023, despite continued asset growth, both net sales and asset turnover ratios experienced mild declines. This suggests that although the asset base continued to expand, the company's efficiency in generating sales per unit of asset diminished somewhat, potentially signaling changes in market conditions, operational dynamics, or asset deployment strategy.

The financial data reveals several key trends regarding the company's leverage and equity position over the periods analyzed.

Total Debt

Total debt exhibits a clear upward trend from 11,499 million US dollars in February 2020 to a peak of 16,139 million US dollars by January 2023, followed by a slight decrease to 15,940 million US dollars by February 2025. This indicates generally increasing borrowing with a recent modest reduction.

Shareholders’ Investment

Shareholders’ investment showed initial growth from 11,833 million US dollars in February 2020 to 14,440 million in January 2021. This was followed by a decline reaching a low of 11,232 million by January 2023 before increasing again to 14,666 million by February 2025. The pattern suggests fluctuations in equity contributions or retained earnings over the timeframe.

Reported Debt to Equity Ratio

The reported debt to equity ratio decreases from 0.97 in February 2020 to 0.88 by January 2021, indicating improved equity relative to debt. However, the ratio rises substantially thereafter, peaking at 1.44 in January 2023, reflecting increased leverage. A subsequent reduction to 1.09 by February 2025 signifies some deleveraging or improved equity position in the most recent periods.

Adjusted Total Debt

The adjusted total debt figures reaffirm the increasing debt trend, rising steadily from 13,974 million in February 2020 to 19,875 million in February 2025. The continuous upward trajectory is somewhat more pronounced than the reported debt, suggesting adjustments include additional liabilities or obligations.

Adjusted Shareholders’ Investment

Adjusted shareholders’ investment shows a rise from 12,947 million in February 2020 to 15,410 million by January 2021, then a decline through to January 2023 at 13,422 million, and a subsequent increase to 16,959 million by February 2025. These changes parallel the reported equity but show a generally higher investment base after adjustments.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio mirrors the reported ratio trend, initially declining from 1.08 in February 2020 to 0.98 in January 2021, increasing sharply to 1.42 in January 2023, and then decreasing again to 1.17 by February 2025. This pattern highlights periods of rising leverage followed by partial improvements as the company manages its capital structure.

Overall, the data indicates that the company experienced an increasing reliance on debt financing accompanied by fluctuating equity levels throughout the periods. The leverage ratios peaked around early 2023, implying heightened financial risk at that time, but showed some improvement thereafter. The adjustments to debt and equity suggest consideration of additional financial obligations impacting the true leverage position.

Total Debt

The total debt shows a consistent increase from 11,499 million US dollars in early 2020 to a peak of 16,139 million US dollars in early 2023, followed by a slight decline to 15,940 million US dollars by early 2025. This indicates a general upward borrowing trend over the years with a stabilization or slight reduction in the most recent period.

Total Capital

Total capital also exhibits growth, rising from 23,332 million US dollars in 2020 to 30,606 million US dollars in 2025. There is a noticeable dip between 2021 and 2022 but afterward a recovery and steady growth trend, pointing toward expanding overall capital resources.

Reported Debt to Capital Ratio

The reported debt to capital ratio fluctuates between 0.47 and 0.59 over the period. Initially, the ratio decreased from 0.49 in 2020 to 0.47 in 2021, followed by an increase to 0.59 in 2023. From 2023 onward, the ratio decreases gradually to 0.52 by 2025, suggesting some volatility in capital structure with periods of increased leverage followed by deleveraging.

Adjusted Total Debt

Adjusted total debt follows a similar trajectory as total debt but at higher absolute values, increasing steadily from 13,974 million US dollars in 2020 to 19,875 million US dollars in 2025. This consistent rise reflects the incorporation of additional debt components or refinements in debt measurement.

Adjusted Total Capital

Adjusted total capital grows steadily from 26,921 million US dollars in 2020 to 36,834 million US dollars in 2025. The growth is smoother compared to nominal totals, indicating possible adjustments that provide a more comprehensive view of capital resources without the mid-term dip seen in reported total capital.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio moves from 0.52 in 2020, dips slightly in 2021 to 0.50, and then rises again to peak at 0.59 in 2023. Afterward, it decreases modestly to 0.54 in 2025. This trend suggests a moderate increase in leverage until 2023, followed by gradual deleveraging, mirroring the pattern seen in reported ratios but at a slightly higher leverage level.

Total Assets

Total assets exhibited a consistent upward trend from 42,779 million US dollars in early 2020 to 57,769 million US dollars projected for early 2025. The growth was steady, with a notable increase between 2020 and 2021 and continued incremental rises in subsequent years, reflecting an expansion in the asset base over the five-year period.

Shareholders’ Investment

Reported shareholders’ investment showed fluctuations during the period. It increased from 11,833 million US dollars in 2020 to a peak of 14,440 million US dollars in 2021, followed by a downward movement to 11,232 million US dollars by 2023. Thereafter, it recovered, reaching 14,666 million US dollars projected for 2025. This pattern suggests variability in equity financing or retained earnings over time.

Reported Financial Leverage

The reported financial leverage ratio generally increased from 3.62 in 2020 to a peak of 4.75 in 2023, indicating heightened use of debt relative to equity. However, it declined thereafter to 3.94 in 2025, suggesting a reduction in financial risk or rebalancing between debt and equity financing toward the end of the period.

Adjusted Total Assets

Adjusted total assets closely mirrored the trend of reported total assets, rising from 42,771 million US dollars in 2020 to 57,759 million US dollars in 2025. This consistency supports the validity of the asset base growth highlighted by the reported figures.

Adjusted Shareholders’ Investment

Adjusted shareholders’ investment was consistently higher than the reported figure throughout the period, starting at 12,947 million US dollars in 2020 and reaching 16,959 million US dollars projected for 2025. Although it followed a similar fluctuation pattern to the reported investment, the adjusted figures suggest a stronger equity position after certain modifications or reclassifications.

Adjusted Financial Leverage

The adjusted financial leverage ratio displayed a rising trend from 3.30 in 2020 to 3.97 in 2023, followed by a decrease to 3.41 in 2025, paralleling the pattern observed in the reported leverage ratio but at generally lower levels. This implies that after adjustments, the company's leverage is somewhat lower, indicating a more conservative capital structure than suggested by the reported leverage.

Net Earnings

Net earnings exhibited a fluctuating trend over the examined period. Starting at 3,281 million US dollars in early 2020, the figure increased significantly to 6,946 million by early 2022. However, this was followed by a sharp decline to 2,780 million in early 2023. Subsequently, net earnings recovered to over 4,000 million in the last two years, reaching 4,138 million in early 2024 and slightly decreasing to 4,091 million in early 2025.

Net Sales

Net sales showed a general upward trend between 2020 and 2023, increasing from 78,112 million US dollars in 2020 to a peak of 109,120 million in 2023. After this peak, there was a slight decline in the following periods, with sales decreasing to 107,412 million in 2024 and further to 106,566 million in 2025.

Reported Net Profit Margin

The reported net profit margin increased from 4.2% in 2020 to a high of 6.55% in 2022, indicating improved profitability relative to sales during that period. However, this margin then decreased sharply to 2.55% in 2023, followed by a modest recovery to approximately 3.85% in the subsequent years, but remaining below earlier highs.

Adjusted Net Earnings

Adjusted net earnings mirrored the general pattern observed in net earnings, with an increase from 3,384 million in 2020 to a peak of 7,671 million in 2022. This was followed by a decline in 2023 to 3,496 million. Adjusted earnings recovered to 4,395 million in 2024 but slightly decreased again to 3,913 million in 2025.

Adjusted Net Profit Margin

The adjusted net profit margin rose from 4.33% in 2020 to its highest point of 7.24% in 2022. After this peak, a decline is observed, dropping to 3.2% in 2023. Margins improved somewhat in the next two years but remained below the earlier peak, registering at 4.09% in 2024 and declining slightly to 3.67% in 2025.

Overall Insights

Over the period analyzed, both net earnings and sales showed growth until early 2022, followed by a notable reduction in earnings and profit margins in 2023. While sales decreased slightly after 2023, profits and profit margins declined more significantly, indicating potential pressures on profitability despite sustained sales levels. The adjusted figures show a similar pattern, suggesting that the fluctuations are not solely attributable to one-time items. The recovery in earnings and margins after 2023 remains partial, with recent values still below the 2022 peaks.

Net Earnings

Net earnings exhibited an overall increasing trend from 2020 through 2022, reaching a peak of 6,946 million US dollars in January 2022. After this peak, net earnings declined sharply in 2023 to 2,780 million before partially recovering in 2024 and 2025 with values of 4,138 million and 4,091 million respectively. This indicates significant volatility in profitability during the period examined.

Shareholders’ Investment

Shareholders’ investment followed a fluctuating pattern, beginning at 11,833 million US dollars in 2020, rising to a high of 14,440 million in 2021, then decreasing over the next two years to 11,232 million in 2023. Subsequently, the investment increased again to 13,432 million in 2024 and further to 14,666 million in 2025. This suggests periods of capital withdrawal or depreciation followed by renewed investment or capital appreciation.

Reported Return on Equity (ROE)

The reported ROE showed a generally strong performance with notable variation. Starting at 27.73% in 2020, it increased to 30.25% in 2021 and surged markedly to 54.15% in 2022. The ROE then decreased to 24.75% in 2023, before rising slightly to 30.81% in 2024 and settling around 27.89% in 2025. The sharp peak in 2022 aligns with the net earnings peak, indicating particularly efficient use of equity that year despite subsequent normalization.

Adjusted Net Earnings

Adjusted net earnings followed a similar trajectory to net earnings but with a higher magnitude at the peak. The adjusted figures rose from 3,384 million in 2020 to a peak of 7,671 million in 2022. Like net earnings, a pronounced decline occurred in 2023 to 3,496 million, followed by a recovery to 4,395 million in 2024 before a slight decrease to 3,913 million in 2025. The adjustments likely reflect non-recurring items influencing the reported earnings.

Adjusted Shareholders’ Investment

Adjusted shareholders’ investment maintained a consistent pattern of higher values compared to reported shareholders’ investment. The amount increased from 12,947 million in 2020 to 15,410 million in 2021, before decreasing to 13,422 million in 2023. From 2023, there was an upward trend to 15,904 million in 2024 and 16,959 million in 2025, suggesting persistent underlying capital strength when adjustments are taken into account.

Adjusted Return on Equity (ROE)

Adjusted ROE rose from 26.14% in 2020 to 27.88% in 2021, peaked at 53.32% in 2022, then declined to 26.05% in 2023. It showed a moderate decrease thereafter, standing at 27.63% in 2024 and 23.07% in 2025. The peak and trend closely mirror those of the reported ROE, confirming the influence of one-time adjustments on profitability ratios but also underscoring strong return performance in 2022 followed by a more subdued return phase.

Net Earnings

Net earnings experienced notable fluctuations over the observed periods. An initial increase was seen from 3,281 million US dollars in early 2020 to 6,946 million in early 2022, representing significant growth. This was followed by a sharp decline to 2,780 million in early 2023, then a recovery to approximately 4,100 million in the subsequent two years. Overall, the earnings showed cyclical volatility with a peak in 2022 and partial recovery thereafter.

Total Assets

Total assets showed a steady upward trend across all periods, increasing from about 42,779 million US dollars in 2020 to 57,769 million in 2025. Growth was consistent but moderate, indicating progressive asset accumulation and possibly expansion or reinvestment strategies.

Reported Return on Assets (ROA)

The reported ROA followed a pattern similar to net earnings but with less pronounced volatility. It increased from 7.67% in 2020 to a peak of 12.91% in 2022, indicating improved profitability relative to asset base during that time. This was followed by a decline to 5.21% in 2023 and partial recovery in the following years, stabilizing around 7%. The pattern suggests fluctuating efficiency in generating returns from assets over the span.

Adjusted Net Earnings

Adjusted net earnings generally mirrored the trend of reported net earnings but with some differences in magnitude. Adjusted earnings rose steadily from 3,384 million in 2020 to a peak of 7,671 million in 2022, surpassing reported figures at that point. A decline occurred in 2023 to 3,496 million, then a slight increase to 4,395 million in 2024 followed by a small dip to 3,913 million in 2025. The adjusted figures suggest some non-recurring or exceptional items impacted net earnings, with adjustments providing higher peak valuations of profitability.

Adjusted Total Assets

Adjusted total assets closely tracked the reported total assets, increasing steadily from 42,771 million in 2020 to 57,759 million in 2025. The similarity indicates limited adjustments in asset valuation, reinforcing the reliability of reported asset trends.

Adjusted Return on Assets (ROA)

Adjusted ROA demonstrated a more pronounced peak in 2022 at 14.26%, higher than reported ROA, reflecting improved profitability excluding certain adjustments. It then fell to 6.56% in 2023 with a partial rebound to 7.94% in 2024, and a slight decline to 6.77% in 2025. This pattern underscores variability in operational performance when adjustment factors are considered.

Summary of Insights

The data reveals a cycle of growth and contraction around 2022, with peak earnings and return metrics, followed by a considerable reduction in profitability in 2023 and modest improvement afterward. Total assets steadily increased, indicating ongoing investments or growth in asset base. The adjusted metrics highlight that exceptional or non-recurring items had a material impact on the reported earnings and returns. Overall, despite fluctuations in profitability, asset growth was consistent, suggesting a strategic focus on asset expansion amidst variable earnings performance.