Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Target Corp., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-05-03), 10-K (reporting date: 2025-02-01), 10-Q (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 10-K (reporting date: 2024-02-03), 10-Q (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04).
The financial ratios analyzed indicate fluctuations in the liquidity position over the examined periods. The current ratio exhibited a general pattern of stability with minor oscillations around the 0.8 to 1.1 range. Specifically, there was a noticeable increase in the ratio between May 2020 and August 2020, reaching above 1.1, suggesting improved short-term liquidity during that time. However, the ratio tends to hover close to or just below 1.0 in subsequent periods, indicating that current liabilities are nearly matched by current assets but without a significant margin.
The quick ratio and cash ratio show identical values throughout the periods, indicating consistent reporting or a close alignment in the components that define these ratios. Both ratios started at very low levels around 0.06 to 0.09, signifying limited liquid assets relative to current liabilities. The ratios improved significantly in mid-2020, peaking at approximately 0.46 in August 2020, which implies a better capacity to cover short-term liabilities with liquid assets during that time frame.
Post-peak, both quick and cash ratios declined steadily, falling back to very low levels around 0.04 to 0.05 in mid to late 2022, reflecting a reduced immediate liquidity position. From early 2023 onward, these ratios show some recovery but remain below 0.25, indicating that liquid assets continue to represent a small fraction of current liabilities. The general trend for these more stringent liquidity measures suggests periods of tightening liquidity with brief improvements, but overall a constrained ability to quickly meet obligations without relying on inventory sales.
Overall, the data reflect a current ratio near or slightly below 1, with quick and cash ratios significantly lower and more volatile. This pattern suggests that while current assets generally cover current liabilities, a substantial portion of these assets may not be readily convertible to cash. The fluctuation in these ratios over time highlights potential liquidity risk that may require monitoring or management to ensure ongoing operational stability.
Current Ratio
Target Corp., current ratio calculation (quarterly data)
| May 3, 2025 | Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||||||
| Current assets | 17,759) | 19,454) | 20,554) | 17,918) | 17,078) | 17,498) | 18,599) | 16,098) | 15,773) | 17,846) | 20,393) | 18,453) | 17,953) | 21,573) | 22,576) | 20,231) | 19,931) | 20,756) | 20,309) | 17,623) | 14,615) | 12,902) | 13,805) | 12,119) | 11,607) | ||||||||
| Current liabilities | 18,991) | 20,799) | 21,792) | 19,984) | 19,859) | 19,304) | 21,502) | 19,332) | 17,867) | 19,500) | 23,783) | 22,445) | 20,724) | 21,747) | 23,351) | 19,422) | 18,598) | 20,125) | 19,357) | 15,892) | 14,412) | 14,487) | 16,608) | 14,364) | 13,239) | ||||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||||||
| Current ratio1 | 0.94 | 0.94 | 0.94 | 0.90 | 0.86 | 0.91 | 0.86 | 0.83 | 0.88 | 0.92 | 0.86 | 0.82 | 0.87 | 0.99 | 0.97 | 1.04 | 1.07 | 1.03 | 1.05 | 1.11 | 1.01 | 0.89 | 0.83 | 0.84 | 0.88 | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||||||||||||
| Costco Wholesale Corp. | — | — | 1.02 | 1.00 | 0.98 | 0.97 | 0.94 | 0.93 | 1.09 | 1.07 | 1.08 | 1.06 | 1.03 | 1.02 | 1.04 | 1.03 | 1.02 | 1.00 | 1.00 | 0.99 | 0.98 | 1.13 | 1.11 | 1.04 | 1.01 | ||||||||
| Walmart Inc. | 0.78 | 0.82 | 0.85 | 0.80 | 0.80 | 0.83 | 0.85 | 0.83 | 0.82 | 0.82 | 0.86 | 0.84 | 0.86 | 0.93 | 0.95 | 0.96 | 0.95 | 0.97 | 0.84 | 0.79 | 0.77 | 0.79 | 0.81 | 0.76 | 0.77 | ||||||||
Based on: 10-Q (reporting date: 2025-05-03), 10-K (reporting date: 2025-02-01), 10-Q (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 10-K (reporting date: 2024-02-03), 10-Q (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04).
1 Q1 2026 Calculation
Current ratio = Current assets ÷ Current liabilities
= 17,759 ÷ 18,991 = 0.94
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable fluctuations in both current assets and current liabilities over the observed periods. Current assets exhibit an overall upward trend from May 2019 through the end of 2020, reaching a peak around October 2020 at approximately $20.3 billion. However, from early 2021 onwards, current assets demonstrate increased volatility with several decreases, particularly marked declines in early 2023, and again towards mid-2025, suggesting possible asset management challenges or changes in working capital strategy.
Current liabilities follow a somewhat similar pattern, initially increasing from May 2019 to October 2021, when they peaked near $23.3 billion. From late 2021 onwards, current liabilities display periodic fluctuations with peaks and troughs but generally remain at high levels compared to earlier years. Notably, there is a decline starting early 2023 continuing towards mid-2025, indicating a possible effort to reduce short-term obligations.
The current ratio, which measures the ability to meet short-term obligations, varies between 0.82 and 1.11 throughout the period. Early data from 2019 show a ratio below 1, indicating liabilities exceed assets during these quarters. The ratio improves in 2020, exceeding 1.0 in several quarters, which suggests improved liquidity. However, from 2021 onward, the current ratio consistently remains slightly below or near 1, reflecting tight liquidity conditions. The ratio maintains relative stability from late 2023 through mid-2025, holding close to 0.9 to 0.94, which may indicate persistent constraint in short-term financial flexibility but no acute liquidity risk.
- Current Assets
- Show an increasing trend during 2019 to 2020, peaking near $20 billion, followed by fluctuating declines through 2023 to 2025.
- Current Liabilities
- Increase steadily until late 2021, peaking above $23 billion, then exhibit a downward movement with fluctuations through 2025.
- Current Ratio
- Ranges mostly below 1.0 early in the period, improves above 1.0 during 2020, then stabilizes just below 1.0 in subsequent years, indicating continued liquidity pressures but avoidance of severe short-term solvency concerns.
In summary, the company shows signs of managing current liabilities prudently, particularly the reduction after 2021, but the sustained current ratio below 1.0 suggests emphasis on strict working capital management. The decline and variability in current assets after 2020 may warrant further investigation into inventory levels, receivables management, or other components influencing liquidity. Overall, the data reflects a firm navigating through periods of tightening short-term financial conditions while maintaining a balanced but cautious liquidity position.
Quick Ratio
Target Corp., quick ratio calculation (quarterly data)
| May 3, 2025 | Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||||||
| Cash and cash equivalents | 2,887) | 4,762) | 3,433) | 3,497) | 3,604) | 3,805) | 1,910) | 1,617) | 1,321) | 2,229) | 954) | 1,117) | 1,112) | 5,911) | 5,753) | 7,368) | 7,816) | 8,511) | 5,996) | 7,284) | 4,566) | 2,577) | 969) | 1,656) | 1,173) | ||||||||
| Total quick assets | 2,887) | 4,762) | 3,433) | 3,497) | 3,604) | 3,805) | 1,910) | 1,617) | 1,321) | 2,229) | 954) | 1,117) | 1,112) | 5,911) | 5,753) | 7,368) | 7,816) | 8,511) | 5,996) | 7,284) | 4,566) | 2,577) | 969) | 1,656) | 1,173) | ||||||||
| Current liabilities | 18,991) | 20,799) | 21,792) | 19,984) | 19,859) | 19,304) | 21,502) | 19,332) | 17,867) | 19,500) | 23,783) | 22,445) | 20,724) | 21,747) | 23,351) | 19,422) | 18,598) | 20,125) | 19,357) | 15,892) | 14,412) | 14,487) | 16,608) | 14,364) | 13,239) | ||||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||||||
| Quick ratio1 | 0.15 | 0.23 | 0.16 | 0.17 | 0.18 | 0.20 | 0.09 | 0.08 | 0.07 | 0.11 | 0.04 | 0.05 | 0.05 | 0.27 | 0.25 | 0.38 | 0.42 | 0.42 | 0.31 | 0.46 | 0.32 | 0.18 | 0.06 | 0.12 | 0.09 | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||||||||||||
| Costco Wholesale Corp. | — | — | 0.47 | 0.44 | 0.39 | 0.39 | 0.40 | 0.38 | 0.55 | 0.52 | 0.51 | 0.50 | 0.42 | 0.42 | 0.43 | 0.46 | 0.46 | 0.47 | 0.45 | 0.42 | 0.49 | 0.60 | 0.58 | 0.47 | 0.45 | ||||||||
| Walmart Inc. | 0.18 | 0.20 | 0.20 | 0.18 | 0.19 | 0.20 | 0.20 | 0.22 | 0.19 | 0.18 | 0.20 | 0.21 | 0.20 | 0.26 | 0.27 | 0.36 | 0.35 | 0.26 | 0.23 | 0.27 | 0.24 | 0.20 | 0.17 | 0.18 | 0.18 | ||||||||
Based on: 10-Q (reporting date: 2025-05-03), 10-K (reporting date: 2025-02-01), 10-Q (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 10-K (reporting date: 2024-02-03), 10-Q (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04).
1 Q1 2026 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 2,887 ÷ 18,991 = 0.15
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals distinct trends in liquidity as measured by total quick assets, current liabilities, and the quick ratio over the observed periods.
- Total Quick Assets
- Total quick assets demonstrate significant volatility across the quarters. Initially, there is a fluctuation between roughly 1,000 million and 2,500 million US dollars, culminating in a peak of approximately 7,284 million US dollars in August 2020. Following this peak, total quick assets decline sharply to values near or below 1,200 million in the time frame spanning April 2022 to October 2022. After this notable dip, total quick assets begin to recover moderately, reaching approximately 4,762 million US dollars in May 2025. This pattern indicates periods of both accumulation and liquidity tightening, with the highest concentration observed in mid-2020 and a significant contraction in 2022 before partial recovery.
- Current Liabilities
- Current liabilities generally exhibit an upward trajectory, increasing from approximately 13,239 million US dollars in May 2019 to a peak above 23,783 million US dollars in October 2022. After this peak, liabilities decline steadily, ending at approximately 18,991 million US dollars by May 2025. This trend suggests increased short-term obligations over time until late 2022, followed by a deliberate reduction or settlement of liabilities in subsequent quarters.
- Quick Ratio
- The quick ratio, reflecting the ability to cover current liabilities with liquid assets, stays consistently below 0.5 throughout the entire period, starting at 0.09 in May 2019. The ratio peaks at 0.46 in August 2020, coincident with the highest quick asset level, then follows a sharp drop to very low values around 0.04-0.05 in mid to late 2022. Thereafter, a gradual improvement occurs, reaching around 0.23 in early 2025, though still indicating a relatively weak liquidity position. The low quick ratio across all periods signals limited immediate liquidity relative to liabilities, with temporary improvement phases but never approaching a level traditionally considered safe (above 1.0).
In summary, the company's liquidity profile as indicated by quick assets and the quick ratio experienced notable fluctuations with a pronounced liquidity strain evident in mid-2022. The persistent rise in current liabilities until late 2022 followed by reduction suggests strategic financial management attempts to rebalance short-term obligations. Despite some recovery efforts, the overall quick ratio remains well below standard thresholds, highlighting ongoing liquidity challenges.
Cash Ratio
Target Corp., cash ratio calculation (quarterly data)
| May 3, 2025 | Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||||||
| Cash and cash equivalents | 2,887) | 4,762) | 3,433) | 3,497) | 3,604) | 3,805) | 1,910) | 1,617) | 1,321) | 2,229) | 954) | 1,117) | 1,112) | 5,911) | 5,753) | 7,368) | 7,816) | 8,511) | 5,996) | 7,284) | 4,566) | 2,577) | 969) | 1,656) | 1,173) | ||||||||
| Total cash assets | 2,887) | 4,762) | 3,433) | 3,497) | 3,604) | 3,805) | 1,910) | 1,617) | 1,321) | 2,229) | 954) | 1,117) | 1,112) | 5,911) | 5,753) | 7,368) | 7,816) | 8,511) | 5,996) | 7,284) | 4,566) | 2,577) | 969) | 1,656) | 1,173) | ||||||||
| Current liabilities | 18,991) | 20,799) | 21,792) | 19,984) | 19,859) | 19,304) | 21,502) | 19,332) | 17,867) | 19,500) | 23,783) | 22,445) | 20,724) | 21,747) | 23,351) | 19,422) | 18,598) | 20,125) | 19,357) | 15,892) | 14,412) | 14,487) | 16,608) | 14,364) | 13,239) | ||||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||||||
| Cash ratio1 | 0.15 | 0.23 | 0.16 | 0.17 | 0.18 | 0.20 | 0.09 | 0.08 | 0.07 | 0.11 | 0.04 | 0.05 | 0.05 | 0.27 | 0.25 | 0.38 | 0.42 | 0.42 | 0.31 | 0.46 | 0.32 | 0.18 | 0.06 | 0.12 | 0.09 | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||||||||||||
| Costco Wholesale Corp. | — | — | 0.40 | 0.36 | 0.31 | 0.31 | 0.33 | 0.30 | 0.49 | 0.45 | 0.43 | 0.42 | 0.35 | 0.35 | 0.37 | 0.39 | 0.40 | 0.41 | 0.40 | 0.35 | 0.44 | 0.54 | 0.52 | 0.38 | 0.38 | ||||||||
| Walmart Inc. | 0.09 | 0.09 | 0.10 | 0.09 | 0.10 | 0.11 | 0.12 | 0.14 | 0.11 | 0.09 | 0.11 | 0.14 | 0.12 | 0.17 | 0.18 | 0.28 | 0.28 | 0.19 | 0.16 | 0.21 | 0.18 | 0.12 | 0.10 | 0.12 | 0.12 | ||||||||
Based on: 10-Q (reporting date: 2025-05-03), 10-K (reporting date: 2025-02-01), 10-Q (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 10-K (reporting date: 2024-02-03), 10-Q (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04).
1 Q1 2026 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 2,887 ÷ 18,991 = 0.15
2 Click competitor name to see calculations.
- Total cash assets
- The total cash assets exhibit significant fluctuations over the analyzed periods. Initially, a rising trend is visible from May 2019 (1,173 million USD) to August 2020 (7,284 million USD), reflecting substantial growth in liquidity. However, from October 2020 onward, the values demonstrate volatility with repeated declines and partial recoveries. Notably, cash assets notably drop at the beginning of 2022 to around 1,112 million USD and stay relatively low until early 2023. Subsequently, there is a moderate recovery with peaks such as 3,805 million USD in February 2024 before declining again later in 2024 and early 2025.
- Current liabilities
- Current liabilities generally show an upward trend initially, increasing from 13,239 million USD in May 2019 to a peak around the fourth quarter of 2021, reaching approximately 23,351 million USD. Following this peak, current liabilities fluctuate but trend downward overall, declining to approximately 18,991 million USD by May 2025. This pattern indicates a peak in short-term obligations around late 2021, followed by a gradual reduction through 2025.
- Cash ratio
- The cash ratio mirrors the volatility observed in total cash assets. Starting from a low base of 0.09 in May 2019, it increases steadily to reach a high of 0.46 in August 2020. Afterward, the ratio declines sharply, dropping below 0.10 by mid-2022. The cash ratio remains at relatively low levels throughout 2022 and early 2023, demonstrating constrained liquidity in relation to current liabilities. From early 2024 onwards, there is a modest improvement, with the ratio rising to about 0.23 in February 2024 but then decreasing again toward mid-2025. Overall, the liquidity position relative to short-term liabilities remains constrained with periodic improvement phases but no sustained increase.
- Overall observations
- The data signify a period of heightened liquidity and rising short-term liabilities through 2020 and early 2021, suggesting an expansion phase possibly requiring increased working capital. Subsequently, there is a deterioration in liquidity ratios accompanied by declining cash assets and still elevated current liabilities, pointing to tightening liquidity conditions. The fluctuations hint at episodic cash management challenges or strategic adjustments in working capital. The declining trend in current liabilities after 2021 may indicate efforts to reduce short-term obligations, although cash reserves and cash ratio improvements remain limited and inconsistent.