Target Corp. (NYSE:TGT)

Current Ratio Trends

The current ratio initially shows a fluctuating pattern around values below 1.0, indicating that the company's short-term liquidity was less than ideal during the early periods. Starting from May 2019, it ranges from 0.83 to 0.89 through early 2020. A notable improvement occurs in May and August 2020, peaking above 1.1, which suggests enhanced ability to cover current liabilities. After this peak, the ratio moderately declines and stabilizes mostly in the range of 0.82 to 0.99 throughout the subsequent years until mid-2023. Toward the later periods, from late 2023 to mid-2025, a slight upward trend is observed, with values moving closer to 0.9 to just below 1.0, indicating marginal improvement in liquidity.

Quick Ratio Trends

The quick ratio shows more volatility with generally low values, reflecting lower availability of highly liquid assets relative to current liabilities. Early 2019 values are very low, fluctuating between 0.06 and 0.18, indicating limited immediate liquidity. There is a marked improvement around mid to late 2020, where it increases to as high as 0.46. This suggests a temporary strengthening in liquid resources excluding inventories. However, this improvement is not sustained; the ratio declines significantly starting in early 2021, dropping back down to roughly 0.04 to 0.05 for a period, which signals weaker liquidity in quick assets. Subsequently, from 2022 onwards, the quick ratio gradually trends upward again, reaching values of around 0.2 during 2024, before minor fluctuations occur toward mid-2025. This cyclical pattern points to intermittent adjustments in liquidity management or shifts in asset composition.

Cash Ratio Trends

The cash ratio closely mirrors the quick ratio throughout all observed periods, implying that cash and cash equivalents constitute a significant part of the quick assets. The pattern of change is nearly identical, with low starting values and a peak in mid-2020, followed by a decline through early 2022, and a gradual recovery approaching 0.2 by mid-2024. This consistency suggests cash management is closely aligned with the broader liquid asset management, and the observed fluctuations reflect changes in immediate cash availability.

Overall Liquidity Analysis

The liquidity indicators reveal a period of constrained short-term liquidity in early years, particularly pronounced by current ratios below 1 and very low quick and cash ratios. Mid-2020 represents an inflection point with a noticeable improvement, possibly due to strategic responses to external conditions. However, the enhanced liquidity levels were temporary, with subsequent declines evidencing variability in asset liquidity and possible increased liabilities. Recent years demonstrate a slow but steady recovery in quick and cash ratios, while the current ratio shows modest fluctuations close to but below 1. This pattern suggests cautious or improving liquidity management but also indicates the company operates with relatively tight short-term liquidity, possibly relying on asset turnover or other liquidity sources.

Current Assets

The current assets exhibited a generally upward trend from May 2019 through late 2021, rising from approximately 11.6 billion USD to a peak of over 22.5 billion USD. This growth phase was characterized by steady increases each quarter. However, from early 2022 onwards, a decline is observed, with fluctuations but an overall downward trajectory, reducing current assets to around 17.7 billion USD by mid-2025. This pattern suggests a period of asset accumulation followed by a contraction or normalization phase.

Current Liabilities

Current liabilities followed a somewhat parallel but more volatile trajectory compared to current assets. Starting at about 13.2 billion USD in mid-2019, they climbed steadily to a high near 23.3 billion USD by late 2021. Post-2021, liabilities remained elevated but demonstrated fluctuations, with periods of decrease and increase, settling near 19.2 billion USD by mid-2025. The generally higher level of liabilities relative to assets throughout the period indicates persistent short-term obligations that often exceeded current assets.

Current Ratio

The current ratio started below 1.0, reflecting a liquidity position where current liabilities exceeded current assets. This ratio improved gradually to exceed parity around mid-2020, peaking at approximately 1.11, indicative of enhanced short-term liquidity. Afterward, the ratio declined to below 1.0 by early 2022 and remained mostly under or slightly below 1.0 for the subsequent quarters. In the most recent periods up to mid-2025, a subtle recovery is observed with the current ratio approaching 0.99. The data implies fluctuating liquidity conditions with intermittent periods of stronger and weaker short-term financial health.

Overall Insights

Across the analyzed timeframe, the company showed an initial accumulation of current assets outpacing liabilities, reflected in an improved current ratio and liquidity position. The peak in assets and liabilities around late 2021 indicates a period of significant working capital volume. The subsequent downward adjustment in current assets paired with sustained high current liabilities resulted in a weaker current ratio for an extended duration, suggesting tighter liquidity management or increased short-term obligations. The recent trend toward a modest increase in the current ratio hints at a potential stabilization or improvement in liquidity status.

The analysis of the quarterly financial data reveals distinct patterns in the company’s liquidity position over the reported periods. The focus is on total quick assets, current liabilities, and the quick ratio, which collectively provide insight into the short-term financial health and ability to meet immediate obligations.

Total Quick Assets

Total quick assets exhibit significant fluctuations across the quarters, beginning at a relatively low level in early 2019, followed by a sharp increase around mid-2020, reaching a peak of 7,284 million US dollars in August 2020. After this peak, the figure generally trends downward with intermittent rebounds, notably around early 2021 and early 2024, but the overall variability suggests unsettled or changing liquidity conditions.

Current Liabilities

Current liabilities steadily increase from May 2019 onwards, climbing from approximately 13,239 million US dollars to levels exceeding 23,000 million by late 2021. Following this peak, current liabilities decrease slightly and fluctuate around the 19,000 to 21,000 million range until mid-2025. The rising trend through most of the period reflects growing short-term obligations, which may exert pressure on liquidity.

Quick Ratio

The quick ratio, a key indicator of immediate liquidity, remains persistently low throughout the entire timeline, typically below 0.5 and oscillating primarily between 0.04 and 0.46. The ratio peaks around mid-2020 concurrent with the surge in quick assets but declines sharply thereafter. From mid-2021 to early 2023, it falls to very low levels (approximately 0.04 to 0.07), indicating a diminished capacity to cover current liabilities with quick assets. The ratio modestly recovers post-2023, rising to peaks around 0.23, yet still well below a ratio of 1, which would denote adequate liquidity.

Overall Liquidity Insights

The financial data suggests a constrained liquidity position over the examined quarters. While total quick assets experience temporary increases, they are insufficiently consistent to keep pace with rising current liabilities. This imbalance results in persistently low quick ratios, raising concerns about the company's ability to promptly meet short-term financial obligations. The gradual decline and volatility in quick assets alongside elevated current liabilities highlight potential liquidity management challenges. Periodic improvements in the quick ratio indicate intermittent strengthening of liquidity, but these do not constitute a sustained recovery over the long term.

Total Cash Assets

The total cash assets demonstrate significant fluctuations over the observed quarters. Initially, there is a notable increase from 1,173 million USD in May 2019 to a peak of 7,284 million USD in August 2020. Following this peak, cash assets decline sharply to levels around 1,100 million USD by April through October 2022. A moderate recovery occurs after this period, with cash rising again to approximately 3,800 million USD by February 2024. The patterns indicate a cyclical nature with periods of accumulation followed by sharp drawdowns, suggesting possible timing of liquidity management or operational cash flow variability.

Current Liabilities

Current liabilities exhibit a generally upward trajectory from May 2019 through October 2021, rising from 13,239 million USD to an apex near 23,351 million USD. This is followed by a decline beginning in early 2022, tapering to just below 19,000 million USD by May 2025. The increase in liabilities through 2021 could reflect expanded short-term obligations or increased operational commitments, while the subsequent decrease may signal efforts toward liability reduction or improved working capital management.

Cash Ratio

The cash ratio, which measures the ability to cover current liabilities with cash assets, closely mirrors the volatility observed in cash assets. The ratio starts at 0.09 in May 2019, climbs to a high of 0.46 in August 2020 coinciding with peak cash levels, then falls precipitously to a low near 0.04 by October 2022. Afterward, it oscillates upward again, reaching around 0.23 by August 2025. The low cash ratio periods suggest diminished immediate liquidity coverage, while higher ratios indicate stronger short-term liquidity positions. The overall trend showcases liquidity challenges and recovery phases over the timeline analyzed.

Summary Insights

The data reveal a pronounced volatility in liquidity levels across multiple quarters. The substantial rise and fall of total cash assets suggest that cash reserves are actively managed or influenced by operational cycles. The increase and later decrease in current liabilities imply changing short-term financial obligations, potentially connected to business expansion and subsequent consolidation phases. The cash ratio changes confirm fluctuations in liquidity strength, with certain periods indicating constrained immediate coverage of liabilities by cash. These patterns emphasize the importance of close liquidity monitoring and possibly highlight seasonal or strategic factors impacting cash management and liability structuring.