Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Target Corp., solvency 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).
Analysis of solvency ratios reveals a cyclical trend characterized by an increase in leverage peaking in late 2022, followed by a sustained period of deleveraging and balance sheet normalization through mid-2026.
- Debt-to-Equity and Financial Leverage
- A significant upward trend in leverage is observed from May 2021 through October 2022. The debt-to-equity ratio rose from 0.85 to a peak of 1.49, while financial leverage increased from 3.37 to 5.05 during the same period. Following the October 2022 peak, a consistent downward trajectory is evident, with the debt-to-equity ratio returning to 0.86 and financial leverage receding to 3.43 by August 2026, indicating a strategic reduction in reliance on debt financing relative to equity.
- Capital and Asset Structure
- Debt-to-capital and debt-to-assets ratios exhibit similar patterns of expansion and contraction. Debt to capital peaked at 0.60 in October 2022 before declining to 0.46 by August 2026. Debt to assets remained relatively stable compared to equity ratios, peaking at 0.31 in April 2023 and ending the period at 0.25. The consistent gap between standard debt ratios and those including operating lease liabilities suggests a substantial and persistent level of lease-based obligations, which peaked in tandem with traditional debt in late 2022.
- Interest Coverage and Debt Servicing
- Interest coverage exhibited high volatility, with an initial spike peaking at 22.16 in January 2022. This was followed by a marked decline to a trough of 7.58 in April 2023, coinciding with the peak of the debt-to-equity and debt-to-assets ratios. A subsequent recovery trend is observed, with the ratio climbing back to 14.22 by August 2026, suggesting an improved capacity to service interest obligations as the overall debt load was reduced.
Overall, the solvency profile indicates a period of increased financial risk between early 2022 and early 2023, which was effectively mitigated through a multi-year deleveraging process, ultimately restoring the solvency metrics to levels nearly identical to those recorded at the start of the observed period.
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Debt Ratios
Coverage Ratios
Debt to Equity
Target Corp., debt to equity 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 portion of long-term debt and other borrowings | 1,136) | 1,133) | 2,130) | 1,133) | 1,136) | 1,139) | 1,636) | 1,635) | 1,640) | 2,614) | 1,116) | 1,112) | 1,106) | 200) | 130) | 2,207) | 1,649) | 1,089) | 171) | 1,176) | 1,190) | 1,173) | |||||||
| Long-term debt and other borrowings, excluding current portion | 14,221) | 14,282) | 14,326) | 15,366) | 15,320) | 14,334) | 14,304) | 14,346) | 13,654) | 13,487) | 14,922) | 14,883) | 14,926) | 16,010) | 16,009) | 14,237) | 13,453) | 13,379) | 13,549) | 11,586) | 11,589) | 11,509) | |||||||
| Total debt | 15,357) | 15,415) | 16,456) | 16,499) | 16,456) | 15,473) | 15,940) | 15,981) | 15,294) | 16,101) | 16,038) | 15,995) | 16,032) | 16,210) | 16,139) | 16,444) | 15,102) | 14,468) | 13,720) | 12,762) | 12,779) | 12,682) | |||||||
| Shareholders’ investment | 17,843) | 16,395) | 16,165) | 15,501) | 15,420) | 14,947) | 14,666) | 14,489) | 14,429) | 13,840) | 13,432) | 12,514) | 11,990) | 11,605) | 11,232) | 11,019) | 10,592) | 10,774) | 12,827) | 13,803) | 14,860) | 14,959) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to equity1 | 0.86 | 0.94 | 1.02 | 1.06 | 1.07 | 1.04 | 1.09 | 1.10 | 1.06 | 1.16 | 1.19 | 1.28 | 1.34 | 1.40 | 1.44 | 1.49 | 1.43 | 1.34 | 1.07 | 0.92 | 0.86 | 0.85 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||||||
| Costco Wholesale Corp. | — | — | — | 0.17 | 0.18 | 0.19 | 0.20 | 0.21 | 0.23 | 0.23 | 0.25 | 0.27 | 0.28 | 0.22 | 0.21 | 0.28 | 0.29 | 0.30 | 0.31 | 0.33 | 0.34 | 0.36 | |||||||
| Walmart Inc. | 0.58 | 0.62 | 0.52 | 0.55 | 0.56 | 0.63 | 0.50 | 0.54 | 0.56 | 0.62 | 0.56 | 0.70 | 0.63 | 0.68 | 0.58 | 0.71 | 0.65 | 0.68 | 0.51 | 0.52 | 0.58 | 0.62 | |||||||
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
Debt to equity = Total debt ÷ Shareholders’ investment
= 15,357 ÷ 17,843 = 0.86
2 Click competitor name to see calculations.
The analysis of solvency indicators reveals a cyclical trend in the Debt to Equity ratio, characterized by a period of significant leverage expansion followed by a gradual deleveraging process. The ratio increased from 0.85 in May 2021 to a peak of 1.49 in October 2022, before trending downward to 0.86 by August 2026.
- Total Debt Trajectory
- Total debt exhibited a general upward trend during the first half of the observed period, rising from 12,682 million US$ in May 2021 to 16,444 million US$ by October 2022. While debt levels remained relatively stable between 15,294 million US$ and 16,499 million US$ from May 2024 through November 2025, a reduction occurred toward the end of the period, closing at 15,357 million US$ in August 2026.
- Shareholders' Investment Trends
- A notable contraction in shareholders' investment occurred between May 2021 and July 2022, where the value dropped from 14,959 million US$ to a low of 10,592 million US$. Following this trough, a consistent and sustained recovery was observed, with equity growing steadily to reach 17,843 million US$ by August 2026, representing the highest equity level in the analyzed timeframe.
- Debt to Equity Ratio Dynamics
- The escalation of the Debt to Equity ratio to 1.49 in October 2022 was the result of a dual impact: increasing total debt coinciding with a sharp decline in equity. The subsequent decline in the ratio was primarily driven by the robust recovery of shareholders' investment, which outpaced the fluctuations in total debt. This trend culminated in a return to a solvency position of 0.86 by August 2026, effectively neutralizing the leverage peak seen in 2022.
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Debt to Equity (including Operating Lease Liability)
Target Corp., debt to equity (including operating lease liability) 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 portion of long-term debt and other borrowings | 1,136) | 1,133) | 2,130) | 1,133) | 1,136) | 1,139) | 1,636) | 1,635) | 1,640) | 2,614) | 1,116) | 1,112) | 1,106) | 200) | 130) | 2,207) | 1,649) | 1,089) | 171) | 1,176) | 1,190) | 1,173) | |||||||
| Long-term debt and other borrowings, excluding current portion | 14,221) | 14,282) | 14,326) | 15,366) | 15,320) | 14,334) | 14,304) | 14,346) | 13,654) | 13,487) | 14,922) | 14,883) | 14,926) | 16,010) | 16,009) | 14,237) | 13,453) | 13,379) | 13,549) | 11,586) | 11,589) | 11,509) | |||||||
| Total debt | 15,357) | 15,415) | 16,456) | 16,499) | 16,456) | 15,473) | 15,940) | 15,981) | 15,294) | 16,101) | 16,038) | 15,995) | 16,032) | 16,210) | 16,139) | 16,444) | 15,102) | 14,468) | 13,720) | 12,762) | 12,779) | 12,682) | |||||||
| Noncurrent operating lease liabilities | 3,332) | 3,416) | 3,462) | 3,542) | 3,514) | 3,564) | 3,582) | 3,418) | 3,444) | 3,392) | 3,279) | 3,031) | 2,798) | 2,621) | 2,638) | 2,590) | 2,543) | 2,581) | 2,493) | 2,494) | 2,462) | 2,337) | |||||||
| Total debt (including operating lease liability) | 18,689) | 18,831) | 19,918) | 20,041) | 19,970) | 19,037) | 19,522) | 19,399) | 18,738) | 19,493) | 19,317) | 19,026) | 18,830) | 18,831) | 18,777) | 19,034) | 17,645) | 17,049) | 16,213) | 15,256) | 15,241) | 15,019) | |||||||
| Shareholders’ investment | 17,843) | 16,395) | 16,165) | 15,501) | 15,420) | 14,947) | 14,666) | 14,489) | 14,429) | 13,840) | 13,432) | 12,514) | 11,990) | 11,605) | 11,232) | 11,019) | 10,592) | 10,774) | 12,827) | 13,803) | 14,860) | 14,959) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to equity (including operating lease liability)1 | 1.05 | 1.15 | 1.23 | 1.29 | 1.30 | 1.27 | 1.33 | 1.34 | 1.30 | 1.41 | 1.44 | 1.52 | 1.57 | 1.62 | 1.67 | 1.73 | 1.67 | 1.58 | 1.26 | 1.11 | 1.03 | 1.00 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||||||
| Costco Wholesale Corp. | — | — | — | 0.24 | 0.25 | 0.27 | 0.28 | 0.30 | 0.31 | 0.33 | 0.35 | 0.38 | 0.40 | 0.32 | 0.31 | 0.38 | 0.40 | 0.42 | 0.43 | 0.45 | 0.48 | 0.50 | |||||||
| Walmart Inc. | 0.75 | 0.79 | 0.67 | 0.71 | 0.72 | 0.80 | 0.66 | 0.70 | 0.73 | 0.79 | 0.73 | 0.88 | 0.81 | 0.88 | 0.77 | 0.90 | 0.84 | 0.87 | 0.69 | 0.70 | 0.76 | 0.80 | |||||||
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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ investment
= 18,689 ÷ 17,843 = 1.05
2 Click competitor name to see calculations.
The solvency profile exhibits a distinct cyclical pattern characterized by a period of increasing leverage followed by a sustained recovery and strengthening of the balance sheet. The overall trend indicates a return to a capital structure similar to that observed at the beginning of the analyzed period.
- Debt to Equity Ratio Volatility
- A significant expansion in the debt-to-equity ratio is observed from May 2021 to October 2022, where the ratio rose from 1.00 to a peak of 1.73. This escalation indicates a period of increased financial leverage. Following this peak, a consistent downward trend is evident, with the ratio compressing to 1.05 by August 2026, signaling a reduction in solvency risk and a more balanced capital structure.
- Total Debt Trajectory
- Total debt, inclusive of operating lease liabilities, followed a general upward trajectory for the majority of the period. Obligations increased from 15,019 million in May 2021 to a peak of 20,041 million in November 2025. A subsequent reduction is noted in the final quarters, with total debt decreasing to 18,689 million by August 2026.
- Shareholders' Investment Recovery
- Equity levels experienced a sharp contraction during the initial phase, falling from 14,959 million in May 2021 to a low of 10,592 million in July 2022. This decline was the primary driver behind the spike in the debt-to-equity ratio. However, a robust and steady recovery followed, with shareholders' investment growing consistently for several years to reach 17,843 million by August 2026.
- Solvency Correlation
- The analysis reveals that the peak leverage in October 2022 was the result of a simultaneous increase in total debt and a decrease in shareholders' investment. The subsequent improvement in the solvency ratio was driven primarily by the aggressive growth in equity, which outpaced the growth in debt, thereby reducing the overall financial risk profile of the entity.
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Debt to Capital
Target Corp., debt to capital 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 portion of long-term debt and other borrowings | 1,136) | 1,133) | 2,130) | 1,133) | 1,136) | 1,139) | 1,636) | 1,635) | 1,640) | 2,614) | 1,116) | 1,112) | 1,106) | 200) | 130) | 2,207) | 1,649) | 1,089) | 171) | 1,176) | 1,190) | 1,173) | |||||||
| Long-term debt and other borrowings, excluding current portion | 14,221) | 14,282) | 14,326) | 15,366) | 15,320) | 14,334) | 14,304) | 14,346) | 13,654) | 13,487) | 14,922) | 14,883) | 14,926) | 16,010) | 16,009) | 14,237) | 13,453) | 13,379) | 13,549) | 11,586) | 11,589) | 11,509) | |||||||
| Total debt | 15,357) | 15,415) | 16,456) | 16,499) | 16,456) | 15,473) | 15,940) | 15,981) | 15,294) | 16,101) | 16,038) | 15,995) | 16,032) | 16,210) | 16,139) | 16,444) | 15,102) | 14,468) | 13,720) | 12,762) | 12,779) | 12,682) | |||||||
| Shareholders’ investment | 17,843) | 16,395) | 16,165) | 15,501) | 15,420) | 14,947) | 14,666) | 14,489) | 14,429) | 13,840) | 13,432) | 12,514) | 11,990) | 11,605) | 11,232) | 11,019) | 10,592) | 10,774) | 12,827) | 13,803) | 14,860) | 14,959) | |||||||
| Total capital | 33,200) | 31,810) | 32,621) | 32,000) | 31,876) | 30,420) | 30,606) | 30,470) | 29,723) | 29,941) | 29,470) | 28,509) | 28,022) | 27,815) | 27,371) | 27,463) | 25,694) | 25,242) | 26,547) | 26,565) | 27,639) | 27,641) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to capital1 | 0.46 | 0.48 | 0.50 | 0.52 | 0.52 | 0.51 | 0.52 | 0.52 | 0.51 | 0.54 | 0.54 | 0.56 | 0.57 | 0.58 | 0.59 | 0.60 | 0.59 | 0.57 | 0.52 | 0.48 | 0.46 | 0.46 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||||||
| Costco Wholesale Corp. | — | — | — | 0.14 | 0.15 | 0.16 | 0.16 | 0.17 | 0.18 | 0.19 | 0.20 | 0.21 | 0.22 | 0.18 | 0.18 | 0.22 | 0.22 | 0.23 | 0.24 | 0.25 | 0.26 | 0.27 | |||||||
| Walmart Inc. | 0.37 | 0.38 | 0.34 | 0.36 | 0.36 | 0.39 | 0.33 | 0.35 | 0.36 | 0.38 | 0.36 | 0.41 | 0.39 | 0.41 | 0.37 | 0.42 | 0.40 | 0.40 | 0.34 | 0.34 | 0.37 | 0.38 | |||||||
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
Debt to capital = Total debt ÷ Total capital
= 15,357 ÷ 33,200 = 0.46
2 Click competitor name to see calculations.
An analysis of the solvency metrics from May 2021 through August 2026 reveals a cyclical pattern in the company's leverage, characterized by a period of significant increase followed by a gradual return to baseline levels.
- Debt to Capital Ratio Trends
- The ratio exhibited three distinct phases. An initial stable period occurred between May 2021 and October 2021, with the ratio hovering between 0.46 and 0.48. This was followed by a period of rapid escalation starting in January 2022, where the ratio climbed from 0.52 to a peak of 0.60 by October 2022. From January 2023 onward, a consistent downward trend is observed, with the ratio returning to 0.46 by August 2026.
- Total Debt Dynamics
- Total debt increased from 12,682 million USD in May 2021 to a peak of 16,444 million USD in October 2022. Following this peak, debt levels remained relatively volatile but plateaued, generally fluctuating between 15,294 million USD and 16,499 million USD. The final recorded value of 15,357 million USD represents a modest decrease from the 2022 peak, but remains higher than the 2021 starting point.
- Total Capital Expansion
- Total capital experienced a temporary decline in early 2022, reaching a low of 25,242 million USD in April 2022. However, a sustained growth trajectory began in January 2023, moving from 27,371 million USD to a period high of 33,200 million USD by August 2026. This expansion in the capital base served as the primary driver for the reduction in the debt to capital ratio during the latter half of the analyzed period.
- Solvency Conclusion
- The convergence of stabilized debt levels and an expanding capital base indicates an improvement in the company's solvency position relative to its 2022 peak. By August 2026, the leverage profile had effectively reverted to the levels seen in May 2021, despite the absolute amount of debt remaining higher, suggesting that capital growth has outpaced debt accumulation.
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Debt to Capital (including Operating Lease Liability)
Target Corp., debt to capital (including operating lease liability) 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 portion of long-term debt and other borrowings | 1,136) | 1,133) | 2,130) | 1,133) | 1,136) | 1,139) | 1,636) | 1,635) | 1,640) | 2,614) | 1,116) | 1,112) | 1,106) | 200) | 130) | 2,207) | 1,649) | 1,089) | 171) | 1,176) | 1,190) | 1,173) | |||||||
| Long-term debt and other borrowings, excluding current portion | 14,221) | 14,282) | 14,326) | 15,366) | 15,320) | 14,334) | 14,304) | 14,346) | 13,654) | 13,487) | 14,922) | 14,883) | 14,926) | 16,010) | 16,009) | 14,237) | 13,453) | 13,379) | 13,549) | 11,586) | 11,589) | 11,509) | |||||||
| Total debt | 15,357) | 15,415) | 16,456) | 16,499) | 16,456) | 15,473) | 15,940) | 15,981) | 15,294) | 16,101) | 16,038) | 15,995) | 16,032) | 16,210) | 16,139) | 16,444) | 15,102) | 14,468) | 13,720) | 12,762) | 12,779) | 12,682) | |||||||
| Noncurrent operating lease liabilities | 3,332) | 3,416) | 3,462) | 3,542) | 3,514) | 3,564) | 3,582) | 3,418) | 3,444) | 3,392) | 3,279) | 3,031) | 2,798) | 2,621) | 2,638) | 2,590) | 2,543) | 2,581) | 2,493) | 2,494) | 2,462) | 2,337) | |||||||
| Total debt (including operating lease liability) | 18,689) | 18,831) | 19,918) | 20,041) | 19,970) | 19,037) | 19,522) | 19,399) | 18,738) | 19,493) | 19,317) | 19,026) | 18,830) | 18,831) | 18,777) | 19,034) | 17,645) | 17,049) | 16,213) | 15,256) | 15,241) | 15,019) | |||||||
| Shareholders’ investment | 17,843) | 16,395) | 16,165) | 15,501) | 15,420) | 14,947) | 14,666) | 14,489) | 14,429) | 13,840) | 13,432) | 12,514) | 11,990) | 11,605) | 11,232) | 11,019) | 10,592) | 10,774) | 12,827) | 13,803) | 14,860) | 14,959) | |||||||
| Total capital (including operating lease liability) | 36,532) | 35,226) | 36,083) | 35,542) | 35,390) | 33,984) | 34,188) | 33,888) | 33,167) | 33,333) | 32,749) | 31,540) | 30,820) | 30,436) | 30,009) | 30,053) | 28,237) | 27,823) | 29,040) | 29,059) | 30,101) | 29,978) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to capital (including operating lease liability)1 | 0.51 | 0.53 | 0.55 | 0.56 | 0.56 | 0.56 | 0.57 | 0.57 | 0.56 | 0.58 | 0.59 | 0.60 | 0.61 | 0.62 | 0.63 | 0.63 | 0.62 | 0.61 | 0.56 | 0.53 | 0.51 | 0.50 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||||||
| Costco Wholesale Corp. | — | — | — | 0.20 | 0.20 | 0.21 | 0.22 | 0.23 | 0.24 | 0.25 | 0.26 | 0.27 | 0.29 | 0.24 | 0.24 | 0.28 | 0.28 | 0.29 | 0.30 | 0.31 | 0.32 | 0.34 | |||||||
| Walmart Inc. | 0.43 | 0.44 | 0.40 | 0.42 | 0.42 | 0.45 | 0.40 | 0.41 | 0.42 | 0.44 | 0.42 | 0.47 | 0.45 | 0.47 | 0.43 | 0.48 | 0.46 | 0.46 | 0.41 | 0.41 | 0.43 | 0.45 | |||||||
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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 18,689 ÷ 36,532 = 0.51
2 Click competitor name to see calculations.
The analysis of solvency metrics reveals a cyclical trend in the debt-to-capital ratio over the period from May 2021 to August 2026. An initial phase of increasing leverage was followed by a sustained period of relative deleveraging as total capital grew faster than total debt.
- Debt to Capital Ratio Trend
- The debt-to-capital ratio experienced a consistent increase from 0.50 in May 2021, reaching a peak of 0.63 in October 2022. Following this peak, a gradual and steady decline was observed, with the ratio returning to 0.51 by August 2026. This movement suggests a strategic shift or a natural correction in the capital structure toward a more conservative leverage position after late 2022.
- Total Debt Trajectory
- Total debt, including operating lease liabilities, followed a general upward path for the majority of the period. Starting at 15,019 million US dollars in May 2021, liabilities increased to a peak of 20,041 million US dollars in November 2025. While a slight reduction occurred in the final quarters, ending at 18,689 million US dollars in August 2026, the absolute debt level remained substantially higher than the initial 2021 figures.
- Total Capital Growth
- Total capital demonstrated overall growth, rising from 29,978 million US dollars in May 2021 to 36,532 million US dollars by August 2026. Although there were periods of volatility in 2022, the subsequent expansion of the capital base outweighed the increase in total debt from October 2022 onward. This expansion in total capital is the primary driver behind the observed reduction in the debt-to-capital ratio during the latter half of the analyzed period.
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Debt to Assets
Target Corp., debt to assets 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 portion of long-term debt and other borrowings | 1,136) | 1,133) | 2,130) | 1,133) | 1,136) | 1,139) | 1,636) | 1,635) | 1,640) | 2,614) | 1,116) | 1,112) | 1,106) | 200) | 130) | 2,207) | 1,649) | 1,089) | 171) | 1,176) | 1,190) | 1,173) | |||||||
| Long-term debt and other borrowings, excluding current portion | 14,221) | 14,282) | 14,326) | 15,366) | 15,320) | 14,334) | 14,304) | 14,346) | 13,654) | 13,487) | 14,922) | 14,883) | 14,926) | 16,010) | 16,009) | 14,237) | 13,453) | 13,379) | 13,549) | 11,586) | 11,589) | 11,509) | |||||||
| Total debt | 15,357) | 15,415) | 16,456) | 16,499) | 16,456) | 15,473) | 15,940) | 15,981) | 15,294) | 16,101) | 16,038) | 15,995) | 16,032) | 16,210) | 16,139) | 16,444) | 15,102) | 14,468) | 13,720) | 12,762) | 12,779) | 12,682) | |||||||
| Total assets | 61,235) | 58,010) | 59,490) | 59,991) | 57,851) | 56,185) | 57,769) | 58,531) | 55,995) | 55,117) | 55,356) | 56,229) | 53,206) | 52,150) | 53,335) | 55,615) | 52,470) | 50,842) | 53,811) | 54,411) | 51,385) | 50,471) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to assets1 | 0.25 | 0.27 | 0.28 | 0.28 | 0.28 | 0.28 | 0.28 | 0.27 | 0.27 | 0.29 | 0.29 | 0.28 | 0.30 | 0.31 | 0.30 | 0.30 | 0.29 | 0.28 | 0.25 | 0.23 | 0.25 | 0.25 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||||||
| Costco Wholesale Corp. | — | — | — | 0.07 | 0.07 | 0.07 | 0.07 | 0.08 | 0.08 | 0.08 | 0.08 | 0.09 | 0.09 | 0.08 | 0.08 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | 0.11 | 0.10 | |||||||
| Walmart Inc. | 0.19 | 0.20 | 0.18 | 0.18 | 0.19 | 0.20 | 0.18 | 0.18 | 0.18 | 0.20 | 0.19 | 0.21 | 0.20 | 0.20 | 0.18 | 0.21 | 0.21 | 0.21 | 0.17 | 0.18 | 0.19 | 0.20 | |||||||
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
Debt to assets = Total debt ÷ Total assets
= 15,357 ÷ 61,235 = 0.25
2 Click competitor name to see calculations.
The solvency profile exhibits a cyclical trend over the analyzed period. The debt-to-assets ratio remained stable in the early stages, underwent a period of escalation, and subsequently returned to its initial levels by the end of the timeframe.
- Total Debt Evolution
- Total debt increased from 12,682 million US dollars in May 2021 to a peak of 16,499 million US dollars in November 2025. A period of relative stability was observed between January 2023 and May 2024, where debt levels fluctuated near the 16,000 million US dollar mark before trending downward to 15,357 million US dollars by August 2026.
- Total Asset Growth
- Assets demonstrated a general upward trajectory, rising from 50,471 million US dollars in May 2021 to 61,235 million US dollars by August 2026. Although a temporary contraction occurred in April 2022, the consistent growth in the asset base served to mitigate the impact of increased borrowing on the overall solvency ratio.
- Debt to Assets Ratio Dynamics
- The ratio fluctuated within a range of 0.23 to 0.31. An upward trend is observed from January 2022 through April 2023, culminating in a peak of 0.31. This peak was followed by a gradual decline and a period of stabilization around 0.28 between August 2024 and January 2026. By August 2026, the ratio decreased to 0.25, aligning with the levels seen at the start of the period.
The overall analysis indicates that while the company increased its absolute debt levels over the long term, the simultaneous growth in total assets prevented a significant deterioration of the solvency position. The return to a 0.25 ratio suggests a strategic rebalancing of the capital structure or a successful deleveraging phase toward the end of the observed period.
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Debt to Assets (including Operating Lease Liability)
Target Corp., debt to assets (including operating lease liability) 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 portion of long-term debt and other borrowings | 1,136) | 1,133) | 2,130) | 1,133) | 1,136) | 1,139) | 1,636) | 1,635) | 1,640) | 2,614) | 1,116) | 1,112) | 1,106) | 200) | 130) | 2,207) | 1,649) | 1,089) | 171) | 1,176) | 1,190) | 1,173) | |||||||
| Long-term debt and other borrowings, excluding current portion | 14,221) | 14,282) | 14,326) | 15,366) | 15,320) | 14,334) | 14,304) | 14,346) | 13,654) | 13,487) | 14,922) | 14,883) | 14,926) | 16,010) | 16,009) | 14,237) | 13,453) | 13,379) | 13,549) | 11,586) | 11,589) | 11,509) | |||||||
| Total debt | 15,357) | 15,415) | 16,456) | 16,499) | 16,456) | 15,473) | 15,940) | 15,981) | 15,294) | 16,101) | 16,038) | 15,995) | 16,032) | 16,210) | 16,139) | 16,444) | 15,102) | 14,468) | 13,720) | 12,762) | 12,779) | 12,682) | |||||||
| Noncurrent operating lease liabilities | 3,332) | 3,416) | 3,462) | 3,542) | 3,514) | 3,564) | 3,582) | 3,418) | 3,444) | 3,392) | 3,279) | 3,031) | 2,798) | 2,621) | 2,638) | 2,590) | 2,543) | 2,581) | 2,493) | 2,494) | 2,462) | 2,337) | |||||||
| Total debt (including operating lease liability) | 18,689) | 18,831) | 19,918) | 20,041) | 19,970) | 19,037) | 19,522) | 19,399) | 18,738) | 19,493) | 19,317) | 19,026) | 18,830) | 18,831) | 18,777) | 19,034) | 17,645) | 17,049) | 16,213) | 15,256) | 15,241) | 15,019) | |||||||
| Total assets | 61,235) | 58,010) | 59,490) | 59,991) | 57,851) | 56,185) | 57,769) | 58,531) | 55,995) | 55,117) | 55,356) | 56,229) | 53,206) | 52,150) | 53,335) | 55,615) | 52,470) | 50,842) | 53,811) | 54,411) | 51,385) | 50,471) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to assets (including operating lease liability)1 | 0.31 | 0.32 | 0.33 | 0.33 | 0.35 | 0.34 | 0.34 | 0.33 | 0.33 | 0.35 | 0.35 | 0.34 | 0.35 | 0.36 | 0.35 | 0.34 | 0.34 | 0.34 | 0.30 | 0.28 | 0.30 | 0.30 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||||||
| Costco Wholesale Corp. | — | — | — | 0.09 | 0.10 | 0.10 | 0.11 | 0.11 | 0.11 | 0.11 | 0.12 | 0.12 | 0.13 | 0.11 | 0.11 | 0.13 | 0.14 | 0.14 | 0.14 | 0.14 | 0.15 | 0.15 | |||||||
| Walmart Inc. | 0.25 | 0.26 | 0.24 | 0.24 | 0.24 | 0.26 | 0.23 | 0.23 | 0.24 | 0.25 | 0.24 | 0.27 | 0.25 | 0.26 | 0.24 | 0.26 | 0.26 | 0.27 | 0.23 | 0.24 | 0.26 | 0.27 | |||||||
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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 18,689 ÷ 61,235 = 0.31
2 Click competitor name to see calculations.
The solvency profile exhibits a period of increasing leverage followed by a steady trend toward deleveraging relative to the total asset base. The debt-to-assets ratio, which includes operating lease liabilities, remained relatively stable around 0.30 in mid-2021 before experiencing a gradual climb that peaked in early 2023. Since that peak, a consistent downward trajectory has been observed, concluding the analyzed period at a level indicative of improved solvency.
- Total Debt Accumulation and Contraction
- Total debt, incorporating operating lease liabilities, demonstrated a persistent upward trend from May 2021, rising from 15,019 million to a peak of 20,041 million in November 2025. This growth suggests a period of increased borrowing or lease obligations. However, a reversal occurred in the final quarters, with total debt contracting to 18,689 million by August 2026.
- Asset Base Expansion
- The asset base grew from 50,471 million in May 2021 to 61,235 million by August 2026. While assets fluctuated between 2021 and 2023, a more sustained expansion was observed from late 2023 onward. This growth in total assets provided a broader capital base, effectively mitigating the impact of the increased debt levels observed in previous years.
- Debt-to-Assets Ratio Analysis
- The solvency ratio fluctuated between a minimum of 0.28 in October 2021 and a maximum of 0.36 in April 2023. The increase during the first half of the period was driven by debt growing at a faster rate than assets. Conversely, from May 2023 through August 2026, the ratio steadily declined from 0.35 to 0.31, signaling an improvement in the long-term financial position as asset growth outpaced debt accumulation.
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Financial Leverage
Target Corp., financial leverage 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) | |||||||||||||||||||||||||||||
| Total assets | 61,235) | 58,010) | 59,490) | 59,991) | 57,851) | 56,185) | 57,769) | 58,531) | 55,995) | 55,117) | 55,356) | 56,229) | 53,206) | 52,150) | 53,335) | 55,615) | 52,470) | 50,842) | 53,811) | 54,411) | 51,385) | 50,471) | |||||||
| Shareholders’ investment | 17,843) | 16,395) | 16,165) | 15,501) | 15,420) | 14,947) | 14,666) | 14,489) | 14,429) | 13,840) | 13,432) | 12,514) | 11,990) | 11,605) | 11,232) | 11,019) | 10,592) | 10,774) | 12,827) | 13,803) | 14,860) | 14,959) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Financial leverage1 | 3.43 | 3.54 | 3.68 | 3.87 | 3.75 | 3.76 | 3.94 | 4.04 | 3.88 | 3.98 | 4.12 | 4.49 | 4.44 | 4.49 | 4.75 | 5.05 | 4.95 | 4.72 | 4.20 | 3.94 | 3.46 | 3.37 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||||||
| Costco Wholesale Corp. | — | — | — | 2.58 | 2.61 | 2.73 | 2.64 | 2.78 | 2.86 | 3.00 | 2.96 | 3.12 | 3.19 | 2.82 | 2.75 | 2.83 | 2.93 | 3.08 | 3.11 | 3.20 | 3.25 | 3.47 | |||||||
| Walmart Inc. | 2.99 | 3.07 | 2.86 | 3.00 | 3.01 | 3.13 | 2.87 | 2.99 | 3.01 | 3.13 | 3.01 | 3.26 | 3.21 | 3.38 | 3.17 | 3.43 | 3.19 | 3.20 | 2.94 | 2.98 | 2.96 | 3.02 | |||||||
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
Financial leverage = Total assets ÷ Shareholders’ investment
= 61,235 ÷ 17,843 = 3.43
2 Click competitor name to see calculations.
The financial leverage of the entity exhibits a distinct cyclical pattern over the analyzed period, characterized by a period of significant leverage expansion followed by a sustained and systematic deleveraging phase.
- Total Asset Trajectory
- Total assets demonstrate a general upward trend, growing from 50,471 million USD in May 2021 to 61,235 million USD by August 2026. Although growth fluctuated between 2022 and 2023, the long-term trajectory indicates a steady expansion of the overall asset base.
- Shareholders' Investment Dynamics
- Equity experienced a notable contraction in the initial phase of the period, declining from 14,959 million USD in May 2021 to a trough of 10,592 million USD in July 2022. Following this low point, a consistent recovery trend is observed, with shareholders' investment increasing steadily to reach a peak of 17,843 million USD by August 2026.
- Financial Leverage Analysis
- The financial leverage ratio rose sharply from 3.37 in May 2021, peaking at 5.05 in October 2022. This peak represents the point of maximum financial risk relative to equity. From January 2023 onward, the ratio entered a consistent decline, falling to 3.43 by August 2026. This reversal indicates a strategic shift toward reducing reliance on debt or increasing equity capitalization.
The correlation between the recovery of shareholders' investment and the decrease in the leverage ratio suggests a strengthening of the solvency position. By the end of the analyzed period, the financial leverage has effectively returned to its 2021 levels, despite the significant increase in total assets.
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Interest Coverage
Target Corp., interest coverage 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) | |||||||||||||||||||||||||||||
| Net earnings | 1,877) | 781) | 1,045) | 689) | 935) | 1,036) | 1,103) | 854) | 1,192) | 942) | 1,382) | 971) | 835) | 950) | 876) | 712) | 183) | 1,009) | 1,544) | 1,488) | 1,817) | 2,097) | |||||||
| Add: Income tax expense | 582) | 252) | 263) | 170) | 283) | 346) | 303) | 237) | 353) | 277) | 404) | 264) | 237) | 254) | 167) | 197) | 34) | 240) | 473) | 423) | 553) | 512) | |||||||
| Add: Net interest expense | 98) | 117) | 98) | 115) | 116) | 116) | 90) | 105) | 110) | 106) | 107) | 107) | 141) | 147) | 129) | 125) | 112) | 112) | 104) | 105) | 104) | 108) | |||||||
| Earnings before interest and tax (EBIT) | 2,557) | 1,150) | 1,406) | 974) | 1,334) | 1,498) | 1,496) | 1,196) | 1,655) | 1,325) | 1,893) | 1,342) | 1,213) | 1,351) | 1,172) | 1,034) | 329) | 1,361) | 2,121) | 2,016) | 2,474) | 2,717) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Interest coverage1 | 14.22 | 10.91 | 11.71 | 12.13 | 12.94 | 13.88 | 13.80 | 14.18 | 14.45 | 12.52 | 11.55 | 9.69 | 8.80 | 7.58 | 8.15 | 10.70 | 13.46 | 18.76 | 22.16 | 21.38 | 9.43 | 9.08 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||||||||
| Costco Wholesale Corp. | — | — | — | 81.49 | 77.47 | 73.99 | 71.25 | 67.38 | 63.12 | 60.17 | 58.63 | 55.49 | 54.08 | 54.80 | 54.04 | 53.89 | 54.62 | 52.73 | 50.62 | 48.01 | 45.54 | 41.68 | |||||||
| Walmart Inc. | 13.45 | 11.70 | 11.53 | 11.85 | 11.35 | 10.53 | 10.64 | 10.93 | 8.83 | 10.58 | 9.14 | 9.94 | 9.35 | 8.19 | 9.00 | 7.63 | 11.00 | 10.43 | 10.38 | 7.37 | 8.59 | 9.31 | |||||||
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
Interest coverage
= (EBITQ2 2027
+ EBITQ1 2027
+ EBITQ4 2026
+ EBITQ3 2026)
÷ (Interest expenseQ2 2027
+ Interest expenseQ1 2027
+ Interest expenseQ4 2026
+ Interest expenseQ3 2026)
= (2,557 + 1,150 + 1,406 + 974)
÷ (98 + 117 + 98 + 115)
= 14.22
2 Click competitor name to see calculations.
The analysis of the interest coverage ratio reveals a period of significant volatility followed by a phase of stabilization. The trajectory of the ratio is primarily driven by substantial fluctuations in Earnings before Interest and Tax (EBIT), while net interest expenses remained relatively contained throughout the observed timeframe.
- Interest Coverage Volatility
- A notable peak in the interest coverage ratio occurred between October 2021 and January 2022, with the ratio reaching a maximum of 22.16. This was followed by a sustained contraction, reaching a minimum of 7.58 in April 2023. This decline indicates a period of compressed operational profitability relative to the cost of debt servicing.
- Earnings Before Interest and Tax (EBIT) Trends
- EBIT experienced a sharp downward trend beginning in late 2021, reaching a low of 329 million in July 2022. This precipitous drop served as the primary catalyst for the weakening of the solvency ratio. A recovery phase emerged in late 2022, with EBIT generally fluctuating between 1,100 million and 1,900 million before reaching a period high of 2,557 million in August 2026.
- Net Interest Expense Behavior
- Net interest expenses exhibited relative stability, fluctuating within a range of 90 million to 147 million. A peak in interest expenses was recorded in April 2023, which coincided with the lowest interest coverage ratio, thereby compounding the pressure on the company's ability to cover interest payments during that quarter.
- Solvency Recovery and Stabilization
- From 2024 through 2026, the interest coverage ratio stabilized between 10.91 and 14.45. The restoration of operational earnings, coupled with the stabilization of interest costs, indicates a strengthened capacity to meet interest obligations compared to the trough observed in early 2023.
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