Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Target Corp., liquidity ratios
Based on: 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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Target Corp. current ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Target Corp. quick ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Target Corp. cash ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Current Ratio
Target Corp., current ratio calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 21,573 | 20,756 | 12,902 | 12,519 | 12,564 | 11,990 | |
| Current liabilities | 21,747 | 20,125 | 14,487 | 15,014 | 13,201 | 12,708 | |
| Liquidity Ratio | |||||||
| Current ratio1 | 0.99 | 1.03 | 0.89 | 0.83 | 0.95 | 0.94 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Amazon.com Inc. | — | 1.14 | 1.05 | 1.10 | 1.10 | 1.04 | |
| Booking Holdings Inc. | — | 2.10 | 3.56 | 1.83 | 2.36 | 2.58 | |
| GameStop Corp. | 1.92 | 1.16 | 1.32 | 1.43 | 1.33 | 1.22 | |
| Home Depot Inc. | 1.01 | 1.23 | 1.08 | 1.11 | 1.17 | 1.25 | |
| Lowe’s Cos. Inc. | 1.02 | 1.19 | 1.01 | 0.98 | 1.06 | 1.00 | |
| Current Ratio, Sector | |||||||
| Retailing | — | 1.17 | 1.09 | 1.09 | 1.13 | 1.11 | |
| Current Ratio, Industry | |||||||
| Consumer Discretionary | — | 1.21 | 1.16 | 1.06 | 1.11 | 1.10 | |
Based on: 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).
1 2022 Calculation
Current ratio = Current assets ÷ Current liabilities
= 21,573 ÷ 21,747 = 0.99
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. current ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Quick Ratio
Target Corp., quick ratio calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 5,911 | 8,511 | 2,577 | 1,556 | 2,643 | 2,512 | |
| Accounts and other receivables | 835 | 631 | 498 | 632 | 513 | 364 | |
| Vendor income receivable | 518 | 504 | 464 | 468 | 416 | 385 | |
| Total quick assets | 7,264 | 9,646 | 3,539 | 2,656 | 3,572 | 3,261 | |
| Current liabilities | 21,747 | 20,125 | 14,487 | 15,014 | 13,201 | 12,708 | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 0.33 | 0.48 | 0.24 | 0.18 | 0.27 | 0.26 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Amazon.com Inc. | — | 0.86 | 0.83 | 0.83 | 0.80 | 0.70 | |
| Booking Holdings Inc. | — | 2.00 | 3.38 | 1.68 | 2.20 | 2.46 | |
| GameStop Corp. | 1.07 | 0.54 | 0.52 | 0.81 | 0.55 | 0.51 | |
| Home Depot Inc. | 0.20 | 0.47 | 0.23 | 0.22 | 0.34 | 0.32 | |
| Lowe’s Cos. Inc. | 0.07 | 0.28 | 0.06 | 0.05 | 0.06 | 0.05 | |
| Quick Ratio, Sector | |||||||
| Retailing | — | 0.76 | 0.70 | 0.64 | 0.63 | 0.58 | |
| Quick Ratio, Industry | |||||||
| Consumer Discretionary | — | 0.88 | 0.86 | 0.74 | 0.80 | 0.78 | |
Based on: 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).
1 2022 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 7,264 ÷ 21,747 = 0.33
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. quick ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Cash Ratio
Target Corp., cash ratio calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 5,911 | 8,511 | 2,577 | 1,556 | 2,643 | 2,512 | |
| Total cash assets | 5,911 | 8,511 | 2,577 | 1,556 | 2,643 | 2,512 | |
| Current liabilities | 21,747 | 20,125 | 14,487 | 15,014 | 13,201 | 12,708 | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 0.27 | 0.42 | 0.18 | 0.10 | 0.20 | 0.20 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Amazon.com Inc. | — | 0.68 | 0.67 | 0.63 | 0.60 | 0.54 | |
| Booking Holdings Inc. | — | 1.79 | 3.23 | 1.36 | 1.77 | 2.12 | |
| GameStop Corp. | 0.96 | 0.46 | 0.40 | 0.74 | 0.45 | 0.38 | |
| Home Depot Inc. | 0.08 | 0.34 | 0.12 | 0.11 | 0.22 | 0.18 | |
| Lowe’s Cos. Inc. | 0.07 | 0.28 | 0.06 | 0.05 | 0.06 | 0.05 | |
| Cash Ratio, Sector | |||||||
| Retailing | — | 0.61 | 0.57 | 0.48 | 0.48 | 0.44 | |
| Cash Ratio, Industry | |||||||
| Consumer Discretionary | — | 0.68 | 0.67 | 0.54 | 0.58 | 0.58 | |
Based on: 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).
1 2022 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 5,911 ÷ 21,747 = 0.27
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. cash ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |