Analysis of Liquidity Ratios
Beginner level
Liquidity ratios measure the company’s ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Target Corp., liquidity ratios
Based on: 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), 10-K (filing date: 2015-03-13).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Target Corp.’s current ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Target Corp.’s quick ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Target Corp.’s cash ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level. |
Current Ratio
Target Corp., current ratio calculation, comparison to benchmarks
| Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | Jan 30, 2016 | Jan 31, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 12,902 | 12,519 | 12,564 | 11,990 | 14,130 | 14,087 | |
| Current liabilities | 14,487 | 15,014 | 13,201 | 12,708 | 12,622 | 11,736 | |
| Liquidity Ratio | |||||||
| Current ratio1 | 0.89 | 0.83 | 0.95 | 0.94 | 1.12 | 1.20 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Amazon.com Inc. | — | 1.10 | 1.10 | 1.04 | 1.04 | 1.08 | |
| Costco Wholesale Corp. | — | 1.01 | 1.02 | 0.99 | 0.98 | 1.05 | |
| Dollar General Corp. | 1.14 | 1.55 | 1.43 | 1.40 | 1.72 | 1.78 | |
| Home Depot Inc. | 1.08 | 1.11 | 1.17 | 1.25 | 1.36 | 1.36 | |
| Lowe’s Cos. Inc. | 1.01 | 0.98 | 1.06 | 1.00 | 1.01 | 1.08 | |
| TJX Cos. Inc. | 1.24 | 1.53 | 1.66 | 1.63 | 1.54 | 1.71 | |
| Walmart Inc. | 0.79 | 0.80 | 0.76 | 0.86 | 0.93 | 0.97 | |
| Current Ratio, Sector | |||||||
| General Retailers | — | 0.99 | 0.98 | 1.00 | 1.04 | 1.08 | |
| Current Ratio, Industry | |||||||
| Consumer Services | — | 0.96 | 0.99 | 0.98 | 1.02 | 1.11 | |
Based on: 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), 10-K (filing date: 2015-03-13).
1 2020 Calculation
Current ratio = Current assets ÷ Current liabilities
= 12,902 ÷ 14,487 = 0.89
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Target Corp.’s current ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020. |
Quick Ratio
Target Corp., quick ratio calculation, comparison to benchmarks
| Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | Jan 30, 2016 | Jan 31, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 2,577 | 1,556 | 2,643 | 2,512 | 4,046 | 2,210 | |
| Vendor income receivable | 464 | 468 | 416 | 385 | 384 | 493 | |
| Total quick assets | 3,041 | 2,024 | 3,059 | 2,897 | 4,430 | 2,703 | |
| Current liabilities | 14,487 | 15,014 | 13,201 | 12,708 | 12,622 | 11,736 | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 0.21 | 0.13 | 0.23 | 0.23 | 0.35 | 0.23 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Amazon.com Inc. | — | 0.83 | 0.80 | 0.70 | 0.74 | 0.71 | |
| Costco Wholesale Corp. | — | 0.47 | 0.45 | 0.41 | 0.38 | 0.46 | |
| Dollar General Corp. | 0.05 | 0.08 | 0.09 | 0.07 | 0.08 | 0.29 | |
| Home Depot Inc. | 0.23 | 0.22 | 0.34 | 0.32 | 0.33 | 0.28 | |
| Lowe’s Cos. Inc. | 0.06 | 0.05 | 0.06 | 0.05 | 0.07 | 0.06 | |
| TJX Cos. Inc. | 0.50 | 0.61 | 0.70 | 0.78 | 0.61 | 0.76 | |
| Walmart Inc. | 0.20 | 0.18 | 0.16 | 0.19 | 0.22 | 0.24 | |
| Quick Ratio, Sector | |||||||
| General Retailers | — | 0.44 | 0.41 | 0.39 | 0.39 | 0.38 | |
| Quick Ratio, Industry | |||||||
| Consumer Services | — | 0.51 | 0.50 | 0.47 | 0.47 | 0.49 | |
Based on: 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), 10-K (filing date: 2015-03-13).
1 2020 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 3,041 ÷ 14,487 = 0.21
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Target Corp.’s quick ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level. |
Cash Ratio
Target Corp., cash ratio calculation, comparison to benchmarks
| Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | Jan 30, 2016 | Jan 31, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 2,577 | 1,556 | 2,643 | 2,512 | 4,046 | 2,210 | |
| Total cash assets | 2,577 | 1,556 | 2,643 | 2,512 | 4,046 | 2,210 | |
| Current liabilities | 14,487 | 15,014 | 13,201 | 12,708 | 12,622 | 11,736 | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 0.18 | 0.10 | 0.20 | 0.20 | 0.32 | 0.19 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Amazon.com Inc. | — | 0.63 | 0.60 | 0.54 | 0.59 | 0.58 | |
| Costco Wholesale Corp. | — | 0.41 | 0.36 | 0.33 | 0.30 | 0.39 | |
| Dollar General Corp. | 0.05 | 0.08 | 0.09 | 0.07 | 0.08 | 0.29 | |
| Home Depot Inc. | 0.12 | 0.11 | 0.22 | 0.18 | 0.18 | 0.15 | |
| Lowe’s Cos. Inc. | 0.06 | 0.05 | 0.06 | 0.05 | 0.07 | 0.06 | |
| TJX Cos. Inc. | 0.45 | 0.55 | 0.64 | 0.73 | 0.56 | 0.71 | |
| Walmart Inc. | 0.12 | 0.10 | 0.09 | 0.10 | 0.13 | 0.14 | |
| Cash Ratio, Sector | |||||||
| General Retailers | — | 0.33 | 0.30 | 0.28 | 0.30 | 0.28 | |
| Cash Ratio, Industry | |||||||
| Consumer Services | — | 0.30 | 0.30 | 0.27 | 0.28 | 0.30 | |
Based on: 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), 10-K (filing date: 2015-03-13).
1 2020 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 2,577 ÷ 14,487 = 0.18
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Target Corp.’s cash ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level. |