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: 2026-08-01), 10-Q (reporting date: 2026-05-02), 10-K (reporting date: 2026-01-31), 10-Q (reporting date: 2025-11-01), 10-Q (reporting date: 2025-08-02), 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).
Liquidity trends indicate a period of significant contraction followed by a gradual stabilization and recovery. The company experienced a notable decline in its ability to cover short-term obligations throughout 2021 and 2022, with a subsequent trend toward stabilization and modest improvement in the latter half of the observation period.
- Current Ratio
- The current ratio began at 1.07 in May 2021, signaling a sufficient ability to cover current liabilities. A downward trend followed, reaching a low of 0.82 by July 2022. From late 2022 through 2023, the ratio fluctuated between 0.83 and 0.92. A recovery phase is evident from February 2024 onward, with the ratio stabilizing in the 0.93 to 0.99 range, nearly returning to its initial levels by August 2026.
- Quick and Cash Ratios
- The quick and cash ratios exhibit identical values throughout the period, indicating that quick assets consist exclusively of cash and cash equivalents, with negligible accounts receivable. Both ratios experienced a sharp decline from 0.42 in May 2021 to a critical low of 0.04 in October 2022. A gradual recovery began in 2023, with values rising to a range between 0.15 and 0.26 from 2024 through 2026.
- Liquidity Composition and Asset Reliance
- A significant gap persists between the current ratio and the quick ratio across all periods. This divergence suggests a heavy reliance on inventory to maintain current liquidity. While the overall liquidity position improved toward the end of the series, the low quick and cash ratios indicate that a substantial portion of current assets remains illiquid in the short term.
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Current Ratio
Target Corp., current ratio calculation (quarterly data)
| Aug 1, 2026 | May 2, 2026 | Jan 31, 2026 | Nov 1, 2025 | Aug 2, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current assets | 20,928) | 18,065) | 20,005) | 20,702) | 19,034) | 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) | |||||||
| Current liabilities | 21,180) | 19,384) | 21,230) | 21,242) | 19,223) | 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) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Current ratio1 | 0.99 | 0.93 | 0.94 | 0.97 | 0.99 | 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 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||||||||
| Costco Wholesale Corp. | — | — | — | 1.07 | 1.06 | 1.04 | 1.03 | 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 | |||||||
| Walmart Inc. | 0.77 | 0.77 | 0.79 | 0.80 | 0.79 | 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 | |||||||
Based on: 10-Q (reporting date: 2026-08-01), 10-Q (reporting date: 2026-05-02), 10-K (reporting date: 2026-01-31), 10-Q (reporting date: 2025-11-01), 10-Q (reporting date: 2025-08-02), 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).
1 Q2 2027 Calculation
Current ratio = Current assets ÷ Current liabilities
= 20,928 ÷ 21,180 = 0.99
2 Click competitor name to see calculations.
The liquidity position over the analyzed period demonstrates a cycle of initial stability, a period of contraction, and a subsequent recovery toward baseline levels.
- Current Asset Trends
- Current assets exhibited significant volatility, peaking at 22,576 million US$ in October 2021 before experiencing a downward trajectory that reached a minimum of 15,773 million US$ in April 2023. Following this low point, a consistent upward trend is observed, with assets returning to 20,928 million US$ by August 2026.
- Current Liability Trends
- Current liabilities showed a general increase from 18,598 million US$ in May 2021 to a peak of 23,783 million US$ in October 2022. A sharp reduction occurred in early 2023, coinciding with the low point of current assets, before liabilities stabilized and eventually climbed to 21,180 million US$ by the end of the period.
- Current Ratio Analysis
- The current ratio began at 1.07, indicating that short-term assets exceeded short-term obligations. A notable decline occurred between April 2022 and July 2023, with the ratio reaching a minimum of 0.82 in July 2022. This phase indicates a period of tightened liquidity where current liabilities outweighed current assets. From January 2023 onward, a gradual recovery is observed, with the ratio stabilizing between 0.90 and 0.99 from February 2024 through August 2026, effectively returning to a near-neutral liquidity position of 0.99.
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Quick Ratio
Target Corp., quick ratio calculation (quarterly data)
| Aug 1, 2026 | May 2, 2026 | Jan 31, 2026 | Nov 1, 2025 | Aug 2, 2025 | 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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Cash and cash equivalents | 5,411) | 3,534) | 5,488) | 3,822) | 4,341) | 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) | |||||||
| Total quick assets | 5,411) | 3,534) | 5,488) | 3,822) | 4,341) | 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) | |||||||
| Current liabilities | 21,180) | 19,384) | 21,230) | 21,242) | 19,223) | 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) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Quick ratio1 | 0.26 | 0.18 | 0.26 | 0.18 | 0.23 | 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 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||||||||
| Costco Wholesale Corp. | — | — | — | 0.56 | 0.54 | 0.49 | 0.50 | 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 | |||||||
| Walmart Inc. | 0.20 | 0.19 | 0.20 | 0.20 | 0.19 | 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 | |||||||
Based on: 10-Q (reporting date: 2026-08-01), 10-Q (reporting date: 2026-05-02), 10-K (reporting date: 2026-01-31), 10-Q (reporting date: 2025-11-01), 10-Q (reporting date: 2025-08-02), 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).
1 Q2 2027 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 5,411 ÷ 21,180 = 0.26
2 Click competitor name to see calculations.
The analysis of liquidity reveals a period of significant contraction followed by a volatile but gradual recovery. Throughout the entire observed period, the quick ratio consistently remained below 1.0, indicating that quick assets were insufficient to cover current liabilities without the liquidation of inventory.
- Liquidity Deterioration (May 2021 – October 2022)
- A sharp downward trend is observed in the quick ratio, which declined from 0.42 to a period low of 0.04. This contraction was primarily driven by a substantial reduction in total quick assets, which fell from $7,816 million to $954 million. During this same timeframe, current liabilities increased, peaking at $23,783 million in October 2022, further compressing the liquidity margin.
- Stabilization and Initial Recovery (January 2023 – November 2024)
- A modest recovery phase is evident as the quick ratio began to climb, fluctuating between 0.07 and 0.20. This period was characterized by a rebuilding of quick assets, which rose from $2,229 million in January 2023 to $3,433 million by November 2024. Current liabilities showed relative stability, generally ranging between $17,867 million and $21,792 million.
- Recent Volatility and Current Positioning (February 2025 – August 2026)
- The most recent period is marked by higher volatility in quick asset levels, with values swinging between a low of $2,887 million and a high of $5,488 million. This resulted in a quick ratio that fluctuated between 0.15 and 0.26. While the ratio reached a recent peak of 0.26 in August 2026, the liquidity position remains significantly lower than the levels observed at the start of the analysis period.
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Cash Ratio
Target Corp., cash ratio calculation (quarterly data)
| Aug 1, 2026 | May 2, 2026 | Jan 31, 2026 | Nov 1, 2025 | Aug 2, 2025 | May 3, 2025 | Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Cash and cash equivalents | 5,411) | 3,534) | 5,488) | 3,822) | 4,341) | 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) | |||||||
| Total cash assets | 5,411) | 3,534) | 5,488) | 3,822) | 4,341) | 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) | |||||||
| Current liabilities | 21,180) | 19,384) | 21,230) | 21,242) | 19,223) | 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) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Cash ratio1 | 0.26 | 0.18 | 0.26 | 0.18 | 0.23 | 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 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||||||||
| Costco Wholesale Corp. | — | — | — | 0.47 | 0.45 | 0.41 | 0.41 | 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 | |||||||
| Walmart Inc. | 0.10 | 0.09 | 0.10 | 0.09 | 0.09 | 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 | |||||||
Based on: 10-Q (reporting date: 2026-08-01), 10-Q (reporting date: 2026-05-02), 10-K (reporting date: 2026-01-31), 10-Q (reporting date: 2025-11-01), 10-Q (reporting date: 2025-08-02), 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).
1 Q2 2027 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 5,411 ÷ 21,180 = 0.26
2 Click competitor name to see calculations.
The analysis of the cash ratio reveals three distinct phases: a period of significant contraction, a stabilization phase, and a subsequent period of moderate volatility with an upward bias.
- Initial Liquidity Contraction (May 2021 – October 2022)
- A sharp downward trend is observed in the cash ratio, which declined from 0.42 to a minimum of 0.04. This deterioration was primarily driven by a substantial reduction in total cash assets, which fell from 7,816 million US$ to 954 million US$. During this same interval, current liabilities generally increased, peaking at 23,783 million US$ in October 2022, which compounded the pressure on immediate liquidity.
- Recovery and Stabilization (January 2023 – October 2023)
- The cash ratio experienced a gradual recovery, fluctuating between 0.07 and 0.11. This period was characterized by the rebuilding of total cash assets, which rose from 1,321 million US$ in April 2023 to 1,910 million US$ by October 2023. Current liabilities remained relatively stable, allowing the increase in cash reserves to incrementally improve the ratio.
- Long-term Volatility and Improved Liquidity (February 2024 – August 2026)
- The later period is marked by increased liquidity levels compared to the 2022 trough, with the cash ratio oscillating between 0.15 and 0.26. Total cash assets exhibit significant volatility, reaching a peak of 5,488 million US$ in January 2026. While current liabilities continue to fluctuate between approximately 18,991 million US$ and 21,792 million US$, the overall cash ratio maintains a higher baseline than in the preceding years, suggesting a more robust capacity to cover short-term obligations with cash on hand.
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