Target Corp. (NYSE:TGT)

Debt to Equity

The debt to equity ratio fluctuated over the periods, starting at 1.12 in May 2019, declining to a low of 0.85 by May 2021, and subsequently rising to a peak of 1.49 in October 2022. Afterward, it showed a gradual downward trend, stabilizing around 1.04 to 1.07 by August 2025. This pattern indicates alternating periods of increased leverage followed by deleveraging.

Debt to Equity (Including Operating Lease Liability)

Including operating lease liabilities, the debt to equity ratio demonstrated a similar but higher range, starting at 1.3 in May 2019, peaking at 1.73 in October 2022, and then declining to approximately 1.27-1.3 in mid-2025. This suggests that operating leases present a non-negligible impact on total leverage, with a consistent premium over the standard debt to equity measure.

Debt to Capital

The debt to capital ratio maintained a relatively narrower band, beginning at 0.53 in early 2019, dipping to a minimum around 0.46 in mid-2021, then gradually increasing to a high near 0.60 by October 2022, before settling near 0.51-0.52 through 2025. This reflects moderate variations in the proportion of debt financing relative to total capital.

Debt to Capital (Including Operating Lease Liability)

When incorporating operating lease liabilities, this ratio similarly ranged higher, starting at 0.57, rising to a maximum of roughly 0.63 in late 2022, and then declining to about 0.56 by mid-2025. The incremental effect of lease liabilities thus follows a close parallel trajectory to debt to capital without them.

Debt to Assets

The debt to assets ratio demonstrated relative stability, initially about 0.31, decreasing to near 0.25 by late 2020 and early 2021, then increasing slightly to 0.30 by early 2023, before stabilizing in the 0.27-0.29 range through mid-2025. This stability suggests consistent utilization of debt relative to asset base with moderate variation over time.

Debt to Assets (Including Operating Lease Liability)

This ratio was higher, commencing at 0.36, declining to 0.29 in early 2021, then increasing to roughly 0.34-0.35 by early 2023, and thereafter steadying near 0.33-0.35 through 2025. The impact of operating leases is evident, adding a stable margin over the basic debt to assets ratio.

Financial Leverage

Financial leverage peaked at 5.05 in October 2022, starting from 3.65 in May 2019. It varied within a moderate range, showing increases toward late 2021 and 2022, followed by a steady descent to about 3.75 by mid-2025. This indicates changing reliance on debt relative to equity, with a notable peak followed by reduced leverage levels.

Interest Coverage

Interest coverage ratios are missing in the earliest periods but show values starting with 9.78 in November 2019 and wide fluctuations thereafter. The ratio reaches a significant peak at 22.16 in January 2022, then gradually declines but remains comfortably above 7.5 up to August 2025. This trend signifies strong but variable capability to cover interest expenses, with a peak period corresponding with reduced debt levels, and moderate coverage in more recent quarters.

The financial data reveals several notable trends in the company’s capital structure over the analyzed period.

Total Debt

Total debt exhibited fluctuations with an overall increasing tendency. Starting at approximately $12.4 billion, the debt level rose sharply during the early months of 2020, peaking near $16.4 billion by late 2022. Subsequently, debt stabilized around $16 billion, with minor variations observed through mid-2025.

Shareholders’ Investment

Shareholders’ investment demonstrated a generally upward trajectory. Initial values near $11.1 billion increased steadily, with notable growth from 2020 onwards, reaching approximately $15.4 billion by mid-2025. A temporary dip occurred around late 2021 to early 2022, but investment levels recovered and continued to rise thereafter.

Debt to Equity Ratio

The debt to equity ratio reflected changing leverage dynamics. It started slightly above 1.1 in mid-2019, decreased below 1 for much of the 2019–early 2021 period, suggesting reduced leverage, before climbing significantly in 2021 to peak near 1.5. From that peak, the ratio gradually declined, stabilizing just above 1 through mid-2025. This pattern indicates periods of both deleveraging and increased leverage, with recent years showing moderate leverage relative to shareholders’ equity.

In summary, the company’s capital structure has undergone phases of rising debt and equity, with a peak leverage period around 2021–2022 followed by stabilization and moderate deleveraging. The balance between debt and equity appears to be managed actively, reflecting strategic financing decisions responsive to market and operational conditions.

The financial data reveals notable fluctuations over the examined periods across key metrics such as total debt including operating lease liability, shareholders’ investment, and the debt to equity ratio.

Total Debt (Including Operating Lease Liability)

The total debt shows a generally increasing trend with some periods of decline. Initially, the debt decreased from 14,477 million USD in May 2019 to around 13,629 million USD in August 2019. After a brief rise and fall through early 2020, there was a significant jump to 16,490 million USD in May 2020, likely indicating increased leverage during that period. Following this peak, the debt oscillated between approximately 14,800 million USD and 19,970 million USD, eventually reaching nearly 20,000 million USD by August 2025. This suggests an overall upward movement in leverage, with intermittent periods of reduction.

Shareholders’ Investment

Shareholders’ investment experienced moderate volatility. The value increased from 11,117 million USD in May 2019 to a peak of 14,959 million USD in May 2021, indicating growing equity during this span. However, this was followed by a decline to 10,592 million USD by July 2022, likely reflecting equity withdrawals, losses, or other reductions. After this trough, shareholders’ investment recovered steadily to reach 15,420 million USD by August 2025, demonstrating renewed growth in equity capital in the latter terms of the dataset.

Debt to Equity Ratio

The debt to equity ratio exhibits periods of both increase and reduction, closely aligned with the dynamics of debt and equity changes. Starting at 1.3 in May 2019, the ratio decreased to around 1.0 in mid-2021, evidencing improved equity relative to debt during that interval. This improvement reversed sharply, with the ratio climbing to a peak of 1.73 in October 2022, indicating heightened leverage and a relatively lower equity base. Subsequently, the ratio trended downward again, reaching around 1.3 by August 2025, which points to a balanced leverage position closer to the initial levels.

In summary, the data portrays a cycle of leverage increase and retrenchment over the examined timeframe. The debt levels increased overall but with intermittent reductions, while shareholders’ investment showed a swing from growth to decline and back to growth. Correspondingly, the debt to equity ratio varied, peaking during periods of higher debt and lower equity, and declining when equity strengthened relative to debt. These patterns imply responsive adjustments in capital structure possibly driven by external economic conditions or internal strategic financing decisions.

Total Debt

The total debt exhibits moderate fluctuations over the observed period. Initially, total debt decreased slightly from $12,413 million in May 2019 to $11,518 million in August 2019, then remained relatively steady around $11,672 to $11,499 million through early 2020. A significant increase is noted starting May 2020 at $14,241 million, continuing a general upward trend peaking at $16,444 million in late 2022. Subsequently, debt levels fluctuate moderately between $15,473 million and $16,456 million through mid-2025.

Total Capital

Total capital maintains a generally increasing trajectory throughout the period. From approximately $23,530 million in May 2019, it experiences steady growth, reaching $27,815 million by mid-2023. After dynamic quarterly variations, the capital peaks at $31,876 million by August 2025. Despite some minor declines and plateaus during the timeline, the overall trend suggests steady capital base expansion.

Debt to Capital Ratio

The debt to capital ratio reveals a cyclical but broadly stable pattern, ranging from 0.46 to 0.60. Initially, the ratio declined from 0.53 in May 2019 to a low of 0.46 in early 2021, indicating a relative decrease in debt burden compared to capital. However, the ratio increased from 0.52 in early 2022 to a peak of 0.60 in late 2022, reflecting rising leverage. In the subsequent periods, the ratio trends downward slightly, stabilizing around 0.51 to 0.54 through mid-2025, suggesting moderate leverage levels relative to total capital.

The analysis of the debt and capital structure over the observed periods reveals several notable patterns and trends. Total debt, inclusive of operating lease liabilities, shows some fluctuations with an overall upward trajectory. Beginning at approximately $14,477 million in early May 2019, total debt decreased slightly in the months following but then increased significantly around May 2020. Subsequently, total debt stabilized with mild oscillations, reaching a peak close to $19,970 million by August 2025, indicating a gradual increase in the company's leverage over time.

Total capital, which encompasses operating lease liabilities, experienced a generally positive trend throughout the periods. Starting at around $25,594 million in May 2019, the total capital demonstrated some variability but trended upward overall, culminating in approximately $35,390 million in August 2025. This reflects ongoing growth in the company's capital base alongside rising debt levels, suggesting an expanding financial position.

The debt to capital ratio provides further insight into the leverage dynamics. Initially, the ratio stood at 0.57, demonstrating a relatively high reliance on debt financing. This ratio decreased slightly through early 2021, reaching approximately 0.50, indicative of a somewhat deleveraging phase. However, after this period, the ratio increased steadily and peaked around 0.63 by late 2022 and early 2023, corresponding with the rise in total debt and changes in total capital. From that point onward, the ratio gradually declined back to values near 0.56 by mid-2025, signaling a modest reduction in leverage relative to the company’s capital base in the most recent periods.

Overall, the data displays a pattern of moderate debt growth against a backdrop of increasing total capital, with fluctuations in leverage as the company navigated various financing and capital management activities. The oscillations in the debt to capital ratio suggest responsiveness to changing market or operational conditions, with leverage maintained within a moderately stable range over the years.

Total Debt

Exhibited growth from approximately $14.5 billion to nearly $20 billion over six years, with periods of stability and moderate increases aligned with capital expansion.

Total Capital

Increased steadily from about $25.6 billion to $35.4 billion, indicating asset or equity growth alongside rising debt.

Debt to Capital Ratio

Displayed an initial decline from 0.57 to 0.50, followed by a peak near 0.63, and settled around 0.56, reflecting variable leverage management.

Total Debt

The total debt exhibits fluctuations over the observed periods, beginning at $12,413 million in May 2019, followed by a decline to around $11,518 million in August 2019. It then increased sharply to a peak of $16,444 million by October 2022. Subsequently, there is a slight reduction and stabilization in the debt levels, with values oscillating around $16,000 million from early 2023 through mid-2025, ending at $16,456 million in August 2025.

Total Assets

Total assets generally show an upward trend with some volatility. Starting at $40,619 million in May 2019, assets increased consistently to reach a high of $56,615 million by October 2022. After this peak, a slight decline is observed, with values decreasing to approximately $55,117 million in mid-2023, followed by moderate fluctuations ranging between $55,000 million and $58,851 million up to August 2025. Overall, asset levels demonstrate growth over the entire period.

Debt to Assets Ratio

The debt to assets ratio began at 0.31 in May 2019, showing a decreasing trend to reach a low of 0.23 by October 2021. This suggests improvement in leverage or asset expansion relative to debt during that interval. Subsequently, there is a gradual increase, stabilizing around 0.28 to 0.30 from early 2022 through the final period in August 2025. This indicates a relatively stable leverage position in recent years, with the company maintaining a moderate level of indebtedness relative to its total assets.

Overall Insights

The financial data reveals that total debt increased notably during the period from 2019 to late 2022, potentially reflective of increased borrowing or capital expenditures. Meanwhile, total assets grew steadily, contributing to a dynamic but moderate debt-to-assets ratio throughout the timeline. The ratio's decreases and increases correspond with changing debt and asset levels, reflecting the company's management of leverage in the context of asset growth. The relative stabilization of the ratio around 0.28 in recent periods suggests a balanced approach toward debt usage and asset accumulation.

Total Debt (Including Operating Lease Liability)

The total debt shows fluctuation over the observed periods. Starting at 14,477 million USD in May 2019, the debt decreased slightly until November 2019, then showed an increase peaking at 16,538 million USD by August 2020. From that point, the debt level experienced variability with some declines and rises but generally trended upwards, reaching a high of 19,970 million USD in August 2025. The notable increase from early 2024 onward suggests a rising reliance on debt.

Total Assets

Total assets began at 40,619 million USD in May 2019 and generally increased over the period, reaching levels above 55,000 million USD from around mid-2022 to 2025. There were fluctuations within this overall growth, including a peak of 58,531 million USD in November 2024 followed by some downward adjustments. Despite these fluctuations, the upward trajectory indicates asset base expansion, suggesting investment or growth in resource holdings.

Debt to Assets Ratio (Including Operating Lease Liability)

This ratio displays moderate variation around 0.30 to 0.36 during the entire term. Initially, the ratio decreased from 0.36 in May 2019 to a low near 0.28 by late 2021, indicating a period where asset growth outpaced debt accumulation, effectively reducing leverage. However, from 2022 onwards, the ratio climbed again, stabilizing mostly between 0.33 and 0.35. This returning trend reflects a gradual increase in leverage relative to assets, consistent with the increases observed in total debt despite asset growth.

Overall Insights

The data reveals a dynamic financial structure marked by increasing assets accompanied by rising debt levels, resulting in a debt-to-asset ratio that fluctuates but remains within a moderate range. The company has experienced periods of deleveraging followed by phases of increased borrowing. This balanced approach suggests efforts to manage financial risk while supporting growth or operational needs through debt financing. The recent upward trends in both debt and leverage ratios warrant continued monitoring for potential impacts on financial stability and flexibility.

The total assets exhibited an overall upward trend from May 2019 through August 2024, beginning at approximately $40.6 billion and rising to around $57.9 billion. Some fluctuations are observable, with minor decreases occurring periodically, such as between February 2022 and April 2022, and again between May 2023 and August 2023. Despite these short-term declines, the general pattern indicates steady growth in total assets over the analyzed period.

Shareholders’ investment showed a gradual increase across the timeframe but with more variability compared to total assets. Starting at roughly $11.1 billion in May 2019, it reached about $15.4 billion by August 2024. Notable decreases occurred during the middle of the period, particularly from October 2021 to April 2022, where the investment dropped from approximately $13.8 billion to $10.8 billion. Following this dip, there was a consistent recovery and subsequent growth through to the end of the period.

The financial leverage ratio fluctuated within a range, generally between approximately 3.5 and 5.05. Initially, it started at 3.65 in May 2019, experienced some peaks such as in October 2022 at 5.05, and then showed a tendency to decline thereafter, settling around 3.75 by August 2024. This variation suggests changing levels of debt relative to equity, with periods of higher leverage followed by deleveraging phases. The peak leverage ratios correspond to times when shareholders’ investment decreased or was relatively flat despite increases in total assets, implying increased reliance on borrowed funds during those intervals.

Total Assets

Increased steadily from about $40.6 billion to nearly $57.9 billion over five years, with minor short-term fluctuations.

Shareholders' Investment

Moderate overall growth from $11.1 billion to $15.4 billion, with some declines notably in late 2021 to early 2022, followed by recovery.

Financial Leverage

Varied between 3.5 and 5.05, peaking in late 2022, indicating periods of increased borrowing relative to equity before trending downward towards mid-2024.

The analysis of the financial data reveals several notable trends in the earnings before interest and tax (EBIT), net interest expense, and interest coverage of the company over the given periods.

Earnings Before Interest and Tax (EBIT)

EBIT demonstrates considerable fluctuations across the quarters. Initially, it shows moderate values around the 1100–1300 million USD range in 2019, followed by a significant decline around May 2020 reaching as low as 446 million USD. Subsequently, EBIT rebounds sharply to peak at over 2300 million USD in August 2020, indicating a strong recovery. Following this peak, EBIT exhibits variability, with occasional decreases such as the low values around mid-2022 (329 million USD in July 2022), and again mild increases and decreases thereafter. The latest periods show EBIT stabilizing somewhat between approximately 1300 and 1900 million USD, suggesting a return to moderate earnings levels after volatility.

Net Interest Expense

The net interest expense remains relatively stable over the time frame, generally fluctuating within a narrow band between 90 and 130 million USD. An exception occurs in October 2020 where a marked spike to 632 million USD is observed, which appears to be an isolated anomaly. Otherwise, the interest expense maintains consistency, indicating controlled financing costs relative to the company’s borrowing.

Interest Coverage Ratio

The interest coverage ratio, which measures the company's ability to meet interest obligations from EBIT, shows a general presence of healthy coverage levels above 8x for most quarters. Notably, it reaches peaks above 20x in the early 2021 period, corresponding to a period of elevated EBIT and relatively stable interest expenses, signaling strong earnings relative to interest obligations. After these peaks, the ratio adjusts downward but remains stable mostly within the 8x to 15x range, reflecting continued comfortable coverage levels. This indicates the company maintains adequate capacity to cover interest expenses despite earnings volatility.

Overall, the data illustrates a period punctuated by earnings volatility with some sharp downturns and recoveries, while financing costs remained mostly stable except for an isolated spike. The interest coverage ratio consistently reflects the company’s earnings resilience and ability to cover its interest expenses effectively throughout the observed periods.