Target Corp. (NYSE:TGT)

Debt to Equity

Over the observed period, the debt to equity ratio initially decreased from 1.28 to a low of 0.85, indicating a reduction in leverage relative to equity. Subsequently, the ratio increased again, peaking at 1.49, before gradually declining to approximately 1.06 by the end of the timeline. This pattern suggests an initial deleveraging followed by increased borrowing, then a moderate reduction in debt relative to equity.

Debt to Equity (Including Operating Lease Liability)

This adjusted ratio follows a similar trend to the standard debt to equity ratio but at consistently higher levels due to the inclusion of operating lease liabilities. It declines from 1.48 to about 1.00 before rising to a peak of 1.73 and finally decreasing steadily to around 1.29, reflecting changes in both financial borrowing and lease obligations.

Debt to Capital

The debt to capital ratio shows a downward trend in early periods from 0.56 to 0.46, indicating decreasing reliance on debt in the capital structure. It then rose to a higher level near 0.60 before gradually declining again to around 0.52, suggesting some fluctuation but a moderate overall level of debt in capital throughout the period.

Debt to Capital (Including Operating Lease Liability)

This metric mirrors the pattern seen in the standard debt to capital ratio, but it remains higher throughout due to lease liabilities. It ranged from 0.60 down to 0.50, back up to 0.63, and then declined gently, ending near 0.56, indicating operational leases notably contribute to total debt.

Debt to Assets

The debt to assets ratio decreased notably in the early periods from 0.32 to about 0.23, implying reduced debt burden relative to total assets. It subsequently fluctuated between 0.25 and 0.31 with some increase mid-period and finally stabilized around 0.28, showing moderate changes in the firm's leverage when considering total assets.

Debt to Assets (Including Operating Lease Liability)

This ratio, incorporating operating lease liabilities, consistently remains higher than the basic metric, moving from 0.37 down to 0.28, then up to a peak near 0.36 before settling around 0.33. This reiterates the significance of leasing obligations on overall asset financing.

Financial Leverage

The financial leverage ratio begins at a high level of 4.01, decreases to a low near 3.37, and then increases, reaching a peak of 5.05 before falling steadily toward approximately 3.87. This trend reflects fluctuations in the company's use of debt relative to equity and the asset base, with notable increases mid-period followed by moderate deleveraging.

Interest Coverage

Interest coverage showed considerable volatility. It increased from 8.47 to a peak of 22.16, highlighting periods of strong ability to service interest expenses. Afterward, it declined to a lower level of 7.58 at a midpoint, then steadily improved, ending near 12.13. This indicates variable but generally strong earnings relative to interest obligations over time with some mid-period strain.

Total Debt

The total debt remained relatively stable in the initial periods from May 2020 to July 2021, fluctuating modestly around the 12,600 to 12,800 million range. Starting from January 2022, a noticeable upward trend is observed with total debt increasing significantly to a peak of approximately 16,444 million by October 2022. After this peak, total debt experienced minor fluctuations but remained elevated within the 15,900 to 16,500 million range through November 2025. This indicates a general increase in leverage over time, with some stabilization at higher debt levels in the later periods.

Shareholders’ Investment

Shareholders’ investment showed an overall upward trend throughout the entire period. Beginning at 11,169 million in May 2020, it increased steadily to a peak of 14,959 million by May 2021. This growth was followed by a decline to around 10,592 million by July 2022, indicating some volatility or potential impairments during this mid-period. From that point onward, shareholders’ investment resumed growth, rising consistently to reach approximately 15,501 million by November 2025. The steady increase post-mid-2022 reflects strengthened equity positions and potentially improved profitability or retained earnings accumulation.

Debt to Equity Ratio

The debt to equity ratio declined from 1.28 in May 2020 to a low of 0.85 in May 2021, indicating a reduction in leverage relative to shareholders’ equity during this period. However, starting in mid-2021, the ratio increased sharply, peaking at 1.49 by October 2022. The increase corresponds closely to the rise in total debt and the concurrent dip in equity. After the peak, the ratio decreased steadily, reaching 1.06 by November 2025, suggesting an improvement in the balance between debt and equity, driven by a combination of controlled debt levels and strengthening equity base.

Summary

Overall, the financial data reveals a period of volatility marked by an initial phase of debt reduction and equity growth, followed by increased borrowing and a dip in equity around late 2021 to 2022. Subsequently, the company appears to have undertaken efforts to stabilize and improve its capital structure, as evidenced by a gradual normalization of the debt to equity ratio. The trends suggest strategic adjustments in financing and capital management, with a likely focus on balancing leverage while rebuilding shareholders’ equity in the later periods.

Total Debt (including operating lease liability)

The total debt demonstrated a relatively stable level with modest fluctuations during the initial periods, ranging roughly between US$14.8 billion and US$16.2 billion from mid-2020 through early 2022. A clear upward trend is evident starting from April 2022, with debt increasing to a peak exceeding US$20 billion in late 2025. Some volatility is present towards the end, but the overall tendency is an increase in total debt over the observed timeline.

Shareholders’ Investment

Shareholders’ investment showed consistent growth in the early periods, rising steadily from approximately US$11.2 billion in mid-2020 to around US$14.9 billion by the start of 2021. After peaking in early 2021, the investment declined notably until around mid-2022, reaching just above US$10.5 billion. Following this trough, a recovery and upward progression resumed, with investment levels climbing steadily to about US$15.5 billion by late 2025, surpassing the earlier highs.

Debt to Equity Ratio (including operating lease liability)

The debt to equity ratio decreased from 1.48 in mid-2020 to a low near 1.00 by May 2021, indicating an improving balance between debt and shareholders’ equity. However, starting mid-2021, the ratio increased once more and peaked at approximately 1.73 in late 2022. Subsequently, there was a decline and stabilization with minor fluctuations, ultimately settling near 1.29 towards the end of the period in late 2025. This pattern suggests an initial strengthening of equity relative to debt, followed by increasing leverage, and a final phase of moderate stabilization.

Overall Financial Position

Throughout the analyzed periods, the company’s leverage experienced meaningful changes. Initial efforts appear to have focused on strengthening equity and reducing relative debt levels. However, from 2021 onwards, both total debt and the debt to equity ratio trended upwards, signaling increased leverage. This could reflect strategic financing decisions, growth investments, or changing market conditions. Concurrently, shareholders’ investment rebounded after a decline, indicating restored confidence or capital injections. The interplay of these trends suggests a dynamic financial strategy balancing increased indebtedness with gradual equity enhancement.

The financial data reveals notable patterns in the debt management and capital structure over the observed periods. The total debt fluctuated with an initial decline from May 2020 to October 2020, dropping from approximately $14.2 billion to $12.6 billion. Subsequently, total debt generally increased, peaking around the end of 2022 at about $16.4 billion, before showing moderate fluctuations and a slight downward trend in 2024 and 2025, holding around $16 billion by the end of the observed timeline.

Total capital exhibited a different trend, starting near $25.4 billion in May 2020 and showing a general uptrend with some fluctuations through the period. The capital base had a slight dip around late 2021 to early 2022 but rebounded steadily afterward, reaching approximately $32 billion by late 2025. This growth reflects an expansion or strengthening in the company’s capital structure over time.

The debt to capital ratio provides insight into the company’s leverage. Initially, the ratio decreased from 0.56 in early 2020 to a low of 0.46 mid-2021, indicating a reduction in relative debt levels compared to total capital. From mid-2021 onwards, the ratio rose again, peaking around 0.60 at the end of 2022, signaling increased leverage during this interval. Following this peak, the ratio declined moderately to stabilize near 0.52 in the most recent periods, suggesting the company has maintained a moderate level of leverage as it balances debt and capital resources.

Total Debt

Initial decline through 2020, followed by a general increase until late 2022, and then moderate fluctuations with a slight downward trend in 2024-2025.

Total Capital

Gradual overall increase across the entire period, overcoming minor dips, reaching a peak towards the end of the timeline, indicative of growth in the capital base.

Debt to Capital Ratio

Decreased from 0.56 to 0.46 by mid-2021, indicating deleveraging, then rose to about 0.60 by the end of 2022, followed by stabilization around 0.52, reflecting moderate leverage management.

Total Debt (including operating lease liability)

The total debt shows a fluctuating pattern over the reported periods. Initially, the debt remained relatively stable around $16.5 billion until early 2021, before increasing steadily to reach a peak of approximately $19 billion by late 2022. Subsequently, the debt level slightly declined before rising again, approaching $20 billion by late 2025. Overall, there is a clear upward trend in total debt over the longer term, indicating an increasing reliance on leverage or financing obligations.

Total Capital (including operating lease liability)

Total capital exhibits some volatility but generally trends upwards over the observed periods. Starting around $27.7 billion in mid-2020, it experienced fluctuations through 2021 and early 2022, including a temporary dip below $28 billion. From late 2022 onwards, total capital consistently increased, reaching approximately $35.5 billion by late 2025. This rising trend suggests growing capitalization, potentially driven by retained earnings, equity injections, or an accumulation of financed assets.

Debt to Capital Ratio (including operating lease liability)

The debt to capital ratio decreases from 0.6 in mid-2020 to a low near 0.5 by mid-2021, implying a period of reduced leverage relative to the company's capital base. However, from mid-2021 through early 2023, the ratio climbs back up, peaking around 0.63, signifying increased leverage or slower growth in capital compared to debt. Post-early 2023, the ratio gradually declines again, stabilizing around 0.56 toward the end of the forecast. Overall, the ratio indicates periods of both deleveraging and releveraging, but settles on a moderate leverage level by the latest period, reflecting a balanced capital structure.

Summary

The financial trends depict a company with growing debt levels alongside increasing total capital, resulting in a somewhat stable but moderately leveraged capital structure over time. The initial reduction in leverage was reversed temporarily, followed by gradual deleveraging toward the end of the timeline. These movements suggest active management of the balance sheet to optimize financing costs and capital allocation. The rising total capital indicates expansion or reinvestment, while total debt growth points to enhanced borrowing or lease obligations, necessitating ongoing monitoring of debt servicing capacity and capital efficiency.

Total Debt

The total debt levels exhibit a general upward trend from May 2020 to November 2025. Starting at approximately 14.2 billion USD in early 2020, debt fluctuates mildly in the initial periods but escalates gradually, reaching around 16.5 billion USD by the end of the observed timeframe. There are minor decreases and periods of relative stability, for instance between early 2022 and mid-2023, where debt levels oscillate near the 16 billion USD mark before rising again. The increase in total debt suggests a strategy involving increased leverage or financing activity over time.

Total Assets

Total assets consistently increase throughout the period, rising from roughly 44.8 billion USD to nearly 60 billion USD. Noteworthy is the steady growth observed in the first several quarters, with some fluctuations or slight declines around early to mid-2022 and again mid-2024. Despite these minor dips, the overall asset base expansion indicates ongoing investments or asset accumulation, supporting growth or operational scale-up efforts.

Debt to Assets Ratio

The debt to assets ratio shows a declining trend initially, dropping from 0.32 to approximately 0.23 between May 2020 and late 2021, indicating a reduction in leverage relative to asset growth during this period. However, from early 2022 onwards, the ratio begins to increase again, stabilizing between 0.27 and 0.31 towards the latter periods. This suggests a moderate increase in leverage relative to assets, but the ratio remains broadly within a narrow band, indicating controlled leverage without extreme shifts.

Overall Analysis

The financial data reveal a company increasing its asset base while managing a moderate increase in total debt. The initial reduction in the debt-to-asset ratio reflects a phase of asset growth outpacing debt increases. The subsequent ratio stabilization near the 0.28 level implies a balanced approach to leveraging assets and borrowing. This pattern suggests financial strategy focused on sustainable growth through asset accumulation funded partly by increased borrowing but without excessive risk escalation as reflected in the relatively stable leverage ratio.

Total Debt (Including Operating Lease Liability)

The total debt level exhibited a generally upward trend over the periods analyzed. Starting at approximately $16.49 billion, debt slightly increased with some fluctuations, reaching a peak around $19.97 billion by August 2025 and then stabilizing closer to $20.04 billion by November 2025. There were notable increments particularly between early 2022 and late 2022, followed by minor fluctuations in debt levels in subsequent quarters.

Total Assets

Total assets showed a positive growth pattern across the series. Beginning at just over $44.8 billion, assets increased steadily with some variability, peaking at nearly $59.99 billion by November 2025. Asset values exhibited some declines in short intervals, such as in mid-2022 and early 2023, but overall demonstrated sustained expansion, indicative of asset base growth during the timeline.

Debt to Assets Ratio (Including Operating Lease Liability)

The debt to assets ratio started at 0.37 and generally decreased through 2020 to a low near 0.28 in late 2021, reflecting a reduction in leverage relative to asset growth during that time. From early 2022 onwards, the ratio hovered predominantly between 0.33 and 0.36, showing moderate stabilization at a slightly higher leverage level compared to the low point. This suggests a tendency toward maintaining a consistent leverage ratio after an initial improvement phase.

Summary of Observations

Over the period reviewed, the company demonstrated a steady increase in both debt and asset levels, with assets growing at a somewhat stronger pace. The leverage ratio decreased initially, indicating improved financial structure, before settling into a stable range around the mid-0.30s. The data suggests a balanced approach to financing growth, with debt levels managed to maintain a consistent proportion of total asset base. Short-term fluctuations in debt and assets reflect dynamic financial management but no extreme volatility is evident.

The analysis of the financial data over the observed periods indicates notable trends in key financial metrics, including total assets, shareholders’ investment, and financial leverage.

Total Assets

Total assets generally trended upward from May 2020 through November 2025, increasing from approximately $44.8 billion to nearly $60.0 billion. The progression shows moderate growth with some fluctuations, including a dip around early to mid-2022 and early 2023. After these dips, the asset base recovered and continued to expand toward the end of the period examined.

Shareholders’ Investment

The shareholders’ investment exhibits a consistent upward trend from $11.2 billion in May 2020 to approximately $15.5 billion by November 2025. Despite minor fluctuations, the overall trajectory is positive, indicating an increasing equity base. Notably, slower growth or slight declines appear in some interim quarters, particularly between early 2021 and mid-2022, before gaining momentum again in the last periods given.

Financial Leverage

Financial leverage, calculated as the ratio of total assets to shareholders' investment, shows variability throughout the periods. Initially, this ratio decreased from 4.01 to a low near 3.37 by mid-2021, suggesting a relatively stronger equity position compared to assets. However, the ratio increased again thereafter, peaking above 5.0 during late 2021 and early 2022, implying higher reliance on debt or other liabilities relative to equity at that time. Subsequently, financial leverage decreased steadily, stabilizing around 3.7 to 3.9 in the later periods, which indicates a moderate and potentially more balanced leverage position toward the end of the timeframe.

In summary, the data reflects a steady increase in total asset value and shareholders’ equity over the nearly five-year span, with temporary periods of contraction or slower growth. The financial leverage ratio shows a phase of deleveraging followed by a temporary increase in leverage, before moving back toward a more moderate level. These patterns suggest a dynamic approach to capital structure management, balancing growth and risk exposure over time.

Earnings before interest and tax (EBIT)

The EBIT values show considerable fluctuation over the presented periods. Starting at 446 million USD, EBIT increases sharply to peak at 2,717 million USD by May 1, 2021. Following this peak, there is a downward trend until July 30, 2022, where the lowest point of 329 million USD is recorded. Subsequently, EBIT recovers moderately with some fluctuations, rising to 1,893 million USD by February 3, 2024, before experiencing a gradual decline again, ending at 974 million USD in November 1, 2025. This pattern indicates periods of strong profitability followed by volatility and intermittent recovery phases.

Net interest expense

Net interest expense remains relatively stable throughout the periods, ranging mostly between 90 million USD and 147 million USD. Notably, there is a spike to 632 million USD in October 31, 2020, which stands out as an anomaly compared to other periods. Ignoring this outlier, the interest expense shows mild fluctuations without a clear upward or downward trend, generally hovering around 100 to 130 million USD.

Interest coverage ratio

The interest coverage ratio displays significant variation corresponding with EBIT changes. It ranges from a low of 5.92 in October 31, 2020, to a high of 22.16 in January 29, 2022. Early values indicate relatively moderate coverage, followed by a remarkable increase peaking above 20x coverage, suggesting improved ability to meet interest obligations during this time. After January 2022, the coverage ratio gradually declines but remains above 7.5 times, illustrating sustained albeit reduced capacity to cover interest expenses through operating earnings. The ratio's movements reflect the volatility observed in EBIT, while net interest expense remains steady.

Overall insights

The financial data suggest that fluctuations in operating profitability significantly influence the company's interest coverage while net interest expenses remain mostly constant except for a notable outlier. The ability to service debt through operating income shows resilience despite declines in EBIT, though periods of lower earnings pressure this capability. The variability in EBIT points to operational or market factors affecting profitability, which in turn impacts financial risk assessment via interest coverage movements. Ongoing monitoring of EBIT trends will be critical in evaluating future financial stability.