Target Corp. (NYSE:TGT)

Current Ratio Trend

The current ratio displays slight fluctuations over the analyzed periods, generally hovering around the 1.0 mark. Initial values start slightly above 1.0, fluctuating before experiencing a modest decline beginning in early 2022, reaching near 0.82. Subsequently, there is a gradual recovery with the ratio approaching 0.99 toward the end of the analyzed timeline. These movements suggest variations in short-term liquidity but maintaining a level near 1, indicating the firm’s ability to cover its current liabilities with current assets remained relatively stable, albeit with some pressure in certain quarters.

Quick Ratio Trend

The quick ratio exhibits notable volatility and an overall downward trend during the initial period through early 2022. Starting from 0.32, there is an increase to approximately 0.46, followed by a decline to a low of about 0.04–0.05 around early to mid-2022. After this trough, the ratio demonstrates gradual improvement, reaching values in the range of 0.18 to 0.23 by the most recent periods. This pattern implies that the firm's liquid assets excluding inventories varied considerably, with a period of constrained liquidity in more liquid forms, before improving modestly over time.

Cash Ratio Trend

As the cash ratio values mirror those of the quick ratio completely, the same assessments apply. The cash ratio reflects a similar trajectory involving initial moderate values, a pronounced drop in early 2022, and recovery in subsequent quarters. This movement highlights changes in the company’s most liquid assets, namely cash and cash equivalents, with a period of relatively low cash reserves impacting liquidity measures, followed by incremental replenishment.

Overall Liquidity Analysis

The combined liquidity ratios indicate that short-term financial resilience experienced some stress particularly around early 2022, characterized by declines in immediate liquidity indicators. Despite this, the gradual rebound observed in recent quarters suggests that corrective measures or operational improvements were effective in restoring better liquidity positions. The maintenance of a current ratio close to unity throughout implies that current obligations continued to be manageable relative to current assets, with the quick and cash ratios highlighting fluctuations in more liquid reserves.

The financial data over the analyzed quarters reveals several notable trends in terms of the liquidity position of the company as reflected in current assets, current liabilities, and the resulting current ratio.

Current Assets

Current assets exhibit variability over the periods with an initial upward trend, increasing from approximately $14.6 billion to a peak above $22.5 billion around late 2021. Following this peak, there is a general decline observed with some fluctuations, reaching values near $15.8 billion to $18.6 billion in early to mid-2023. The latter periods from early 2024 to late 2025 show a recovery trend, as current assets rise progressively again, achieving approximately $20.7 billion by the last recorded period.

Current Liabilities

Current liabilities generally follow a similar pattern to current assets but tend to increase at a slightly faster pace in certain periods. They rise from about $14.4 billion to a high near $23.4 billion in late 2021. Afterward, liabilities remain relatively elevated with minor decreases and fluctuations between late 2021 and mid-2023. Subsequently, a moderate downward correction is observed, before liabilities again rise steadily towards the later periods, finishing near $21.2 billion by late 2025.

Current Ratio

The current ratio starts close to parity at 1.01, showing a modest increase to a maximum of around 1.11 in the middle of 2020. Following this, the ratio fluctuates, generally trending downward below 1.0 from late 2021 through much of 2023. The lowest values occur in mid to late 2022, with ratios falling to approximately 0.82. This indicates a period when current liabilities exceeded current assets, potentially signaling tighter liquidity conditions. In the most recent quarters, the current ratio shows gradual improvement, moving closer to 1.0 but remaining slightly below unity, suggesting an improving but still cautious liquidity position.

Overall, the data indicates a liquidity profile characterized by initial asset growth matched with rising liabilities, leading to tighter short-term liquidity from 2021 to 2023. Recent trends suggest a strengthening of current assets relative to liabilities, which could reflect improved operational cash flows, asset management, or a strategic emphasis on liquidity enhancement. The current ratio's position generally below 1 in the latest periods, however, suggests continued attention is warranted to short-term liquidity management.

The financial data reviewed display fluctuations in the liquidity position and current liabilities over the examined periods. A comprehensive analysis reveals several patterns and points of interest regarding the company's short-term financial stability.

Total Quick Assets

Total quick assets exhibit considerable variability across the quarters, with values ranging from a high point of 8,511 million US dollars in January 2021 down to lows near or below 1,000 million US dollars in multiple quarters of 2022. Initial periods (2020 to early 2021) show relatively higher quick assets, followed by a marked decline starting in April 2022, where values drop substantially. Some partial recoveries occur sporadically, particularly noticeable in early 2024 and mid to late 2025, but the general trend over the long term suggests a weakening in readily available liquid assets.

Current Liabilities

Current liabilities trend upward during the early periods, rising from 14,412 million US dollars in May 2020 to peaks exceeding 23,351 million US dollars in late 2021. Subsequently, liabilities demonstrate some downward adjustments but remain elevated between approximately 18,867 million and 21,792 million US dollars through 2023 to 2025. This suggests a consistently high level of short-term obligations without a significant reduction, indicating ongoing financial commitments that necessitate adequate liquidity management.

Quick Ratio

The quick ratio, a key measure of short-term liquidity, reflects the relationship between quick assets and current liabilities. Initially, this ratio fluctuates between roughly 0.25 and 0.46 from 2020 into early 2021, indicating modest liquidity levels. However, from 2022 onwards, the quick ratio declines sharply, reaching critically low values near 0.04 to 0.05 during mid-2022, before slightly improving but remaining below 0.25 throughout the subsequent quarters. This persistent low quick ratio signals potential challenges in meeting short-term liabilities using the most liquid assets, highlighting increased liquidity risk.

Overall, the data reveal a concerning trend of decreasing liquid asset availability relative to current liabilities over the period studied. Despite some intermittent recoveries in quick assets, the company’s quick ratio remains low, implying constrained capacity to address immediate financial obligations without reliance on inventory or other less liquid resources. The steadily high current liabilities further compound this pressure. Continued monitoring and potential strategic measures to bolster quick assets or reduce current liabilities may be necessary to enhance liquidity and reduce solvency risk.

Total cash assets

The total cash assets showed considerable fluctuation over the periods under review. Initially, cash assets increased from 4,566 million USD to a peak of 8,511 million USD by early 2021. This was followed by a gradual decreasing trend, reaching a low point around 954 million USD in late 2022. Subsequently, cash holdings recovered moderately, exhibiting intermittent rises and falls, and eventually rose again to 4,762 million USD in May 2025 before experiencing some volatility toward the end of the timeline.

Current liabilities

Current liabilities generally exhibited an upward trend, starting from 14,412 million USD and peaking at 23,783 million USD around late 2022. After this peak, a downward correction is observed with values decreasing to a range between approximately 18,991 and 21,792 million USD through the latest periods. Overall, current liabilities remained elevated compared to the initial period, indicating sustained obligations at a higher level.

Cash ratio

The cash ratio, which is a measure of liquidity calculated by the proportion of cash assets relative to current liabilities, displayed a clear downward trajectory from 0.32 initially to a trough as low as 0.04 by late 2022. This suggests diminishing liquidity during that phase. From that low point, the ratio experienced a partial recovery, climbing up to a maximum of 0.23 during mid-2025 but remained below the initial levels throughout the timeline. The ratio’s volatility reflects fluctuating liquidity conditions, with periods of constrained cash coverage against short-term liabilities interspersed with mild improvements.

Summary insights

There is a noticeable pattern of increasing current liabilities over time, accompanied by a less consistent cash asset position. Despite some rebound in cash assets after their low in late 2022, the liquidity ratio never fully recovers to early period levels, which may imply heightened financial pressure or a strategic shift in working capital management. The declining cash ratio signals a tighter liquidity environment for the company during several intervals, potentially raising concerns about the adequacy of immediate cash resources to meet short-term obligations.