Target Corp. (NYSE:TGT)

Debt to Equity Ratio

The debt to equity ratio demonstrated a declining trend from May 2020 (1.28) through January 2021 (0.88), indicating a reduction in reliance on debt relative to equity. Following this period, it increased steadily to a peak at October 2022 (1.49), suggesting a phase of increased leverage. Afterward, the ratio declined again, reaching lower values around February 2025 (1.04), with a slight uptick observed thereafter.

Debt to Equity Ratio Including Operating Lease Liability

This ratio follows a similar pattern to the debt to equity ratio but consistently remains higher due to the inclusion of operating lease liabilities. It declined from 1.48 in May 2020 to near 1.00 by May 2021, then rose steadily to a peak of 1.73 in October 2022. From there, it decreased gradually to about 1.27 by August 2025, indicating a reduction in total leverage when leases are included.

Debt to Capital Ratio

The debt to capital ratio showed a gradual decline from 0.56 in May 2020 to 0.46 by May 2021, reflecting deleveraging. This was followed by a rise peaking near 0.60 in October 2022 before declining again to approximately 0.51 by August 2025, indicating fluctuations in the overall capital structure with periods of increased borrowing offset by subsequent reductions.

Debt to Capital Ratio Including Operating Lease Liability

The trend mirrors that of the debt to capital ratio but at consistently higher levels, starting at 0.60 in May 2020, dipping to 0.50 in May 2021, rising to 0.63 by October 2022, and then falling to around 0.56 by August 2025. This pattern highlights the impact of lease liabilities on the company’s capital structure.

Debt to Assets Ratio

This ratio decreased from 0.32 in May 2020 to stable low levels around 0.25 between late 2020 and mid-2021, suggesting an improved asset coverage relative to debt. It rose moderately to around 0.31 by April 2023, then declined again to about 0.28 by August 2025, indicating a generally stable yet slightly fluctuating proportion of debt relative to total assets.

Debt to Assets Ratio Including Operating Lease Liability

The included lease liabilities cause this ratio to be higher, starting at 0.37 in May 2020 and following a similar decline and rise pattern through the periods, peaking at approximately 0.36 in April 2023 and settling near 0.35 by August 2025. This suggests that lease obligations contribute materially to the asset leverage profile.

Financial Leverage Ratio

The financial leverage ratio decreased from 4.01 in May 2020 to 3.37 by May 2021, indicating reduced total leverage. It increased thereafter, reaching a high of 5.05 in October 2022, reflecting higher use of debt or other liabilities relative to equity capital. After this peak, the ratio steadily decreased to near 3.75 by August 2025, denoting a trend towards lower leverage levels in recent quarters.

Interest Coverage Ratio

The interest coverage ratio exhibited significant volatility, starting at 8.47 in May 2020, rising sharply to a peak of 22.16 in January 2022, indicative of strong earnings relative to interest expense during that period. Subsequently, it declined to 7.58 by April 2023, then gradually improved to around 13.88 by August 2025. This fluctuation suggests varying ability to cover interest payments, with notable improvement in recent periods after a mid-term dip.

Total debt

The total debt levels initially show a downward trend from May 2020 through October 2020, decreasing from approximately 14,241 million to 12,621 million. Subsequently, there is a general increasing trend in total debt, peaking at 16,444 million in October 2022. After this peak, total debt stabilizes with slight fluctuations, remaining in the range of 15,940 to 16,456 million through to August 2025.

Shareholders’ investment

Shareholders’ investment demonstrates a consistently increasing trend from May 2020 to August 2025. Starting at 11,169 million in May 2020, it rises steadily with minor fluctuations, reaching 15,420 million by August 2025. Notable periods of faster growth appear between January 2024 and May 2025, suggesting strengthening equity capital during this time.

Debt to equity ratio

The debt to equity ratio exhibits a decreasing trend from 1.28 in May 2020 to a low of 0.85 in May 2021, indicating a reduction in financial leverage. Following this period, the ratio rises again, peaking at 1.49 in October 2022, signaling increased reliance on debt relative to equity. Afterward, the ratio declines steadily, reaching a range near 1.04 to 1.07 by mid-2025, demonstrating a move towards a more balanced capital structure with a lower leverage level compared to the peak observed in late 2022.

Overall analysis

Over the analyzed timeframe, the company reduced its total debt initially but then increased debt significantly until late 2022, followed by stabilization. Concurrently, shareholders’ investment grew consistently, providing a strengthening equity base. The debt to equity ratio reflects these changes with an initial decrease, an increase to a peak in late 2022 corresponding to rising total debt, and a subsequent decrease indicating deleveraging steps or growth in equity outpacing debt expansion. These patterns suggest a dynamic capital management strategy, balancing debt financing with equity growth, particularly after 2022 when efforts to reduce leverage became evident.

The financial data reveals notable trends in the company's debt levels, shareholders' investment, and their relative proportions over the observed periods.

Total Debt (including operating lease liability)

Total debt exhibited fluctuations throughout the periods. It initially decreased from approximately $16.5 billion to around $14.8 billion between early 2020 and late 2020. This was followed by a general upward trend, reaching a peak near $19 billion in late 2022. Subsequently, the debt levels showed some volatility but remained close to that high mark, ending just under $20 billion by mid-2025. This pattern suggests an overall gradual increase in leverage after an initial reduction phase.

Shareholders’ Investment

Shareholders' investment grew steadily from about $11.2 billion in early 2020 to approximately $15.4 billion by mid-2025. Despite some minor fluctuations, the general trend indicates consistent growth in equity capital. Notably, there was a decline around late 2021 to mid-2022, but the recovery was relatively swift and sustained afterward.

Debt to Equity Ratio (including operating lease liability)

The debt to equity ratio demonstrates significant variation aligned with the movements in debt and equity levels. Initially, the ratio decreased from about 1.48 to near 1 by mid-2021, reflecting a reduction in leverage. However, from mid-2021 onwards, the ratio increased again, peaking at approximately 1.73 in late 2022. Following this peak, the ratio gradually declined, stabilizing around 1.3 by mid-2025. This trend suggests that while debt increased at times outpacing equity, overall leverage was managed and moderated in the later periods.

In summary, the company demonstrated an initial deleveraging phase in 2020, followed by increased borrowing that outpaced equity growth during 2021 and 2022, leading to higher leverage. Nonetheless, from late 2022 onward, the company appears to have focused on balancing its capital structure, reducing relative debt levels compared to equity, and maintaining a more stable debt to equity ratio around 1.3, indicating improved financial stability.

The financial data reveals several notable trends concerning the company's debt management and capital structure over the observed periods.

Total Debt

Total debt began at approximately $14.2 billion and experienced a general decline into late 2020, reaching around $12.6 billion. Subsequently, the debt level increased steadily, peaking at about $16.4 billion in late 2022. Following this peak, total debt displayed a moderate fluctuation but remained in a range between roughly $15.4 billion and $16.5 billion through mid-2024. This pattern indicates a shift from debt reduction in 2020 toward increased leverage, followed by a stabilization phase in recent quarters.

Total Capital

Total capital showed an upward trajectory overall. Starting near $25.4 billion, capital increased with some volatility, reaching nearly $27.6 billion by mid-2021. It then dipped slightly but rebounded to new highs, culminating around $31.9 billion by mid-2025. This suggests consistent growth in the company’s capital base, supporting expansion or reinforcing financial structure despite fluctuations in debt.

Debt to Capital Ratio

The debt to capital ratio started at 0.56 and declined steadily to 0.46 by mid-2021, reflecting improved capital structure or deleveraging efforts. However, after mid-2021, the ratio reversed direction, climbing back to about 0.60 by late 2022, indicating increased reliance on debt relative to total capital. From that point onward, the ratio slightly decreased again and fluctuated around the 0.51–0.54 range into mid-2025, signaling a balancing approach between debt and equity financing.

Overall, the data demonstrates an initial period of debt reduction and capital strengthening, followed by a phase where debt rose again alongside growth in total capital. The company appears to have managed its leverage ratio within a moderate band in recent years, maintaining a consistent ratio slightly above 0.5, which may reflect strategic debt utilization to fund operations or investments while keeping a balanced capital structure.

Over the analyzed quarterly periods, the company’s total debt, including operating lease liabilities, exhibited a generally upward trend with intermittent fluctuations. Starting from approximately $16.5 billion, the debt level decreased moderately to just below $15 billion by the end of 2020. From early 2021 onward, total debt showed a steady rise, reaching nearly $20 billion in the most recent quarter. This increase indicates a gradual accumulation of debt over the observed timeframe.

Total capital, which also includes operating lease liabilities, demonstrated variability but an overall upward trajectory. Beginning at roughly $27.7 billion, total capital initially rose, then experienced some periods of decline and stabilization through 2022. From 2023 forward, total capital consistently increased, culminating in a value above $35 billion in the latest quarter. This upward movement suggests growth in the company’s overall capital base despite some short-term contractions.

The debt-to-capital ratio reflected these underlying changes by initially declining from 0.60 to a low point of 0.50 in mid-2021, indicating reduced leverage relative to capital base expansion. Subsequently, this ratio began to climb, peaking around 0.63 during early to late 2022, which corresponds with the period of increased debt accumulation and fluctuating capital levels. Following this peak, the ratio gradually decreased again, stabilizing around 0.56 in the most recent quarters. This stabilization suggests the company managed to moderate its leverage after a phase of higher indebtedness.

In summary, the company’s financial structure over the period examined shows a trend of increasing total debt alongside growth in total capital, with leverage rising and falling correspondingly. The recent moderation in the debt-to-capital ratio indicates a possible strategic focus on maintaining a balanced capital structure after a phase of elevated debt levels relative to capital.

Total Debt (including operating lease liability)

Started near $16.5 billion, decreased slightly by end of 2020, then steadily increased to nearly $20 billion by the latest quarter.

Total Capital (including operating lease liability)

Generally increased from about $27.7 billion to above $35 billion, with fluctuations notably in 2022 followed by consistent growth afterward.

Debt to Capital Ratio

Decreased from 0.60 to 0.50 by mid-2021, then rose to about 0.63 in 2022, followed by a gradual decline and stabilization around 0.56 recently.

Total Debt

The total debt of the company has exhibited fluctuations over the observed periods. Initially, debt levels were relatively stable around the 12,600 to 12,800 million US dollar level from late 2020 through mid-2021. From early 2022 onward, there was a general upward trend, peaking near 16,400 million US dollars in late 2022. After that, the debt showed minor fluctuations, stabilizing around 15,900 to 16,400 million US dollars through 2024, and then a slight decrease toward mid-2025, ending at approximately 16,456 million US dollars.

Total Assets

Total assets increased steadily from approximately 44,800 million US dollars in early 2020 to a peak exceeding 58,500 million US dollars by late 2024. Although there was some volatility with minor declines noted around mid-2022 and early 2023, the overall pattern reflects asset growth of around 30 percent over the full timeline. This indicates continued investment and asset accumulation despite intermittent short-term variability.

Debt to Assets Ratio

The ratio of total debt to total assets has generally remained within a moderate range, approximately from 0.23 to 0.32 throughout the period. Early in the timeline, the ratio decreased from 0.32 to around 0.23 by late 2021, indicating improved leverage or asset growth outpacing debt increases. Subsequently, the ratio trended slightly upward to about 0.31 in mid-2023, followed by a modest decline and stabilization near 0.28 through to mid-2025. Overall, the leverage position appears managed with some cyclicality but no indication of sharp increases in financial risk.

Summary

The financial data reveals a company maintaining a relatively steady leverage position while growing its asset base significantly over the analyzed periods. Debt levels rose moderately, particularly from 2022 onwards, but total assets expanded at a pace that helped maintain the debt-to-assets ratio within a controlled range. The company’s financial structure suggests prudent management of debt relative to asset growth, despite some short-term fluctuations in both debt levels and assets. No abrupt changes indicating financial distress or aggressive leverage were observed during the timeframe.

Debt Levels

The total debt, inclusive of operating lease liabilities, exhibits a fluctuating but generally upward trend over the analyzed period. Starting at approximately $16.49 billion, debt decreases slightly in the latter half of 2020 to around $14.8 billion but then increases steadily, reaching near $19.97 billion by mid-2025. This indicates an incremental rise in leverage or borrowings, particularly notable from late 2021 onward.

Total Assets

Total assets demonstrate variability throughout the timeline, starting at roughly $44.8 billion and increasing to levels above $57 billion by mid-2025. There is a discernible growth pattern interspersed with some periods of asset decline or stabilization, such as declines observed in early 2022 and parts of 2023. Overall, assets expand by about 29% from the initial to final periods considered.

Debt to Asset Ratio

The ratio of total debt to total assets decreases significantly from 0.37 to a low near 0.28 during late 2020 and early 2021, indicating an initial improvement in leverage or asset coverage. However, from mid-2021 onward, this ratio stabilizes in the range of 0.33 to 0.36, suggesting consistent leverage levels relative to assets. This stabilization after the initial dip points to a period of maintained proportional indebtedness despite the growth in absolute debt and assets.

Summary

The financial data reflects a company managing its balance sheet by initially reducing leverage relative to assets, followed by a period of stable but somewhat elevated indebtedness. Asset growth is steady on average, with occasional contractions, while debt levels trend upward over time. The debt to asset ratio's stabilization within a narrow band indicates conscious efforts to balance debt accumulation with asset base expansion. This pattern suggests a strategic approach to financing, maintaining consistent leverage while supporting growth initiatives.

The analysis of the quarterly financial data reveals several notable trends in the company's asset base, shareholders' investment, and financial leverage over the period examined.

Total assets

The total assets demonstrate a general upward trend from May 2020 to August 2024, moving from approximately 44.8 billion USD to a peak around 58.5 billion USD. Despite fluctuations, there is consistent growth with occasional periods of slight decline or stabilization, for example around early 2022 and mid-2023. Towards the end of the period, assets maintain a relatively high level, indicating an overall expansion of the company's asset base.

Shareholders’ investment

Shareholders' investment shows a steady increase over the analyzed timeframe, starting at roughly 11.2 billion USD and rising to approximately 15.4 billion USD by August 2024. Some periods reflect slower growth or moderate declines, notably between mid-2020 to early 2022, where the increase is less pronounced or dips are observed. Nevertheless, the long-term pattern suggests continuous reinvestment or retained earnings bolstering equity levels.

Financial leverage

The financial leverage ratio fluctuates meaningfully during the period. It begins at a relatively high level near 4.0 in early 2020, decreases steadily to around 3.4 by mid-2021, implying a reduction in debt reliance or improved equity financing during that phase. A subsequent increase follows, peaking over 5.0 in late 2022, indicating a significant rise in leverage or debt proportional to equity. After this peak, the ratio declines again to stabilize near 3.7 by mid-2025, suggesting efforts to manage leverage and maintain a balanced capital structure.

Overall, the data depict a company that has expanded its asset base substantially while also increasing shareholders’ investment steadily. The financial leverage ratio reveals strategic shifts in capital management, with periods of both reduced and increased debt levels, reflecting dynamic approaches to financing amid changing economic or business conditions.

The analysis of the financial data over multiple quarters reveals several notable trends and patterns in the company's earnings before interest and tax (EBIT), net interest expense, and interest coverage ratio.

Earnings Before Interest and Tax (EBIT)

The EBIT values demonstrate considerable volatility across the periods analyzed. The initial value starts at 446 million US dollars, followed by a sharp increase to 2,311 million in the next quarter. Subsequently, EBIT fluctuates with a downward trend observed around the middle of the timeline, reaching a low of 329 million before recovering somewhat in the later periods. There is no consistent continuous upward or downward trajectory, indicating variable operating performance or external factors influencing earnings.

Net Interest Expense

Net interest expense remains relatively stable throughout the periods, generally fluctuating in a narrow range between 90 and 147 million US dollars. This suggests a consistent cost structure related to interest-bearing liabilities, with no significant spikes or reductions that could influence financing costs notably.

Interest Coverage Ratio

The interest coverage ratio, which measures the company's ability to meet interest obligations from EBIT, shows significant variation. Initially, the ratio improves sharply from 8.47 to 10.51 and then declines to a low point of 5.92, reflecting a period of relatively weaker earnings in relation to interest expenses. However, from that point onwards, there is a marked improvement, with ratios reaching as high as 22.16 before settling in the range of approximately 8.15 to 14.45 in the later periods. This indicates strengthening profitability relative to interest obligations as time progresses.

Overall, the data suggests that while the company experienced volatility in its core operational earnings, its ability to service interest expenses maintained adequate levels, improving notably after initial fluctuations. The stability in net interest expense combined with fluctuating EBIT underscores the influence of operational factors rather than financing costs on the interest coverage ratio variations.