Analysis of Solvency Ratios
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
Based on: 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01).
The financial leverage ratio shows a general upward trend from 3.62 in 2020, peaking at 4.75 in 2023, and then slightly declining to 3.94 in 2025. This indicates an increasing reliance on debt financing relative to equity over the years, with some reduction in leverage towards the end of the period.
The debt to equity ratio also reflects this pattern, with an initial decrease from 0.97 in 2020 to 0.88 in 2021, followed by a rise to 1.44 in 2023, then a decline to 1.09 by 2025. When including operating lease liabilities, this ratio is consistently higher but follows the same trend of growth and slight reduction.
Debt to capital ratios, both excluding and including operating lease liabilities, exhibit a similar pattern with a gradual increase peaking in 2023 (0.59 excluding leases, 0.63 including leases) followed by a moderate decrease through 2025. This suggests a cyclical approach to capital structure management within the timeframe.
Debt to assets ratios remain relatively stable but also rise moderately toward 2023, from 0.27 to 0.3, then decrease slightly to 0.28 by 2025, both excluding and including lease liabilities. The inclusion of lease liabilities yields consistently higher ratios, indicative of substantial obligations under leases.
The interest coverage ratio shows significant volatility with a notable peak at 22.16 in 2022, contrasting with lower values in the surrounding years. After this spike, the ratio decreases in 2023 to 8.15 but gradually improves to 13.8 in 2025, suggesting fluctuating earnings relative to interest expense but overall enhanced ability to meet interest obligations in the later years.
Fixed charge coverage ratios follow a pattern similar to interest coverage but remain lower overall. It peaks at 12.02 in 2022, then declines sharply to 4.62 in 2023, and stabilizes around 6 thereafter. This reflects varying capacity to cover fixed financial obligations that include lease charges or other fixed expenses beyond interest.
Overall, the data indicates increasing financial leverage and indebtedness through the middle of the period, with a peak around 2023, followed by a shift toward reducing leverage and improving coverage ratios by 2025. Fluctuations in coverage ratios suggest variability in earnings performance or changing interest expense dynamics during these years. The inclusion of operating lease liabilities consistently raises leverage metrics, highlighting the importance of lease obligations in the overall financial structure.
- Financial leverage and indebtedness
- Increased through 2023, then moderate reduction by 2025; debt to equity and debt to capital ratios show similar trends.
- Debt to assets
- Relatively stable with modest increase until 2023 followed by slight decline; reflects a consistent proportion of assets financed by debt.
- Interest and fixed charge coverage
- Highly volatile with a peak in 2022; improved ability to cover interest expenses from 2023 onward, fixed charge coverage remains more constrained.
- Impact of operating lease liabilities
- Consistently increase debt-related ratios, emphasizing the significance of lease commitments in financial leverage assessment.
Debt Ratios
Coverage Ratios
Debt to Equity
Target Corp., debt to equity calculation, comparison to benchmarks
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt and other borrowings | 1,636) | 1,116) | 130) | 171) | 1,144) | 161) | |
| Long-term debt and other borrowings, excluding current portion | 14,304) | 14,922) | 16,009) | 13,549) | 11,536) | 11,338) | |
| Total debt | 15,940) | 16,038) | 16,139) | 13,720) | 12,680) | 11,499) | |
| Shareholders’ investment | 14,666) | 13,432) | 11,232) | 12,827) | 14,440) | 11,833) | |
| Solvency Ratio | |||||||
| Debt to equity1 | 1.09 | 1.19 | 1.44 | 1.07 | 0.88 | 0.97 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 0.31 | 0.31 | 0.40 | 0.49 | 0.45 | |
| Walmart Inc. | 0.50 | 0.56 | 0.58 | 0.51 | 0.60 | 0.73 | |
| Debt to Equity, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 0.58 | 0.61 | 0.55 | 0.62 | 0.71 | |
| Debt to Equity, Industry | |||||||
| Consumer Staples | — | 1.11 | 1.16 | 1.08 | 1.07 | 1.24 | |
Based on: 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01).
1 2025 Calculation
Debt to equity = Total debt ÷ Shareholders’ investment
= 15,940 ÷ 14,666 = 1.09
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibited an overall increasing trend from February 1, 2020, to January 28, 2023, rising from $11,499 million to $16,139 million, representing a notable increase over this period. However, from January 28, 2023, onwards, total debt slightly decreased, settling at $15,940 million by February 1, 2025. This pattern indicates an initial phase of increased leverage followed by a modest reduction in debt levels.
- Shareholders’ Investment
- Shareholders’ investment showed fluctuations throughout the analyzed periods. Beginning at $11,833 million in February 2020, it grew to a peak of $14,440 million by January 30, 2021. Subsequently, it declined to $11,232 million by January 28, 2023, before recovering again to reach $14,666 million by February 1, 2025. This variability suggests periods of both capital infusion and possible distributions or losses impacting equity value.
- Debt to Equity Ratio
- The debt to equity ratio experienced variation corresponding with changes in both debt and shareholders' investment. Starting at 0.97 in February 2020, it decreased to 0.88 by January 30, 2021, indicating a relative strengthening of equity compared to debt during that time. It then increased sharply to 1.44 in January 28, 2023, reflecting a higher reliance on debt financing. Afterward, it declined to 1.09 by February 1, 2025, suggesting a partial rebalancing towards lower leverage overall.
Debt to Equity (including Operating Lease Liability)
Target Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt and other borrowings | 1,636) | 1,116) | 130) | 171) | 1,144) | 161) | |
| Long-term debt and other borrowings, excluding current portion | 14,304) | 14,922) | 16,009) | 13,549) | 11,536) | 11,338) | |
| Total debt | 15,940) | 16,038) | 16,139) | 13,720) | 12,680) | 11,499) | |
| Current portion of operating lease liabilities | 353) | 329) | 296) | 254) | 211) | 200) | |
| Noncurrent operating lease liabilities | 3,582) | 3,279) | 2,638) | 2,493) | 2,218) | 2,275) | |
| Total debt (including operating lease liability) | 19,875) | 19,646) | 19,073) | 16,467) | 15,109) | 13,974) | |
| Shareholders’ investment | 14,666) | 13,432) | 11,232) | 12,827) | 14,440) | 11,833) | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | 1.36 | 1.46 | 1.70 | 1.28 | 1.05 | 1.18 | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Costco Wholesale Corp. | — | 0.42 | 0.42 | 0.53 | 0.65 | 0.61 | |
| Walmart Inc. | 0.66 | 0.73 | 0.77 | 0.69 | 0.78 | 0.97 | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Consumer Staples Distribution & Retail | — | 0.75 | 0.78 | 0.73 | 0.79 | 0.93 | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Consumer Staples | — | 1.23 | 1.28 | 1.20 | 1.19 | 1.39 | |
Based on: 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01).
1 2025 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ investment
= 19,875 ÷ 14,666 = 1.36
2 Click competitor name to see calculations.
The annual financial data indicates several noteworthy trends in both debt and equity components over the six-year period. The total debt, which includes operating lease liabilities, shows a consistent upward trajectory. Starting from $13,974 million in 2020, it increased steadily to $19,875 million by 2025. This represents a significant rise in leverage, reflecting either increased borrowing or lease obligations over time.
In contrast, shareholders’ investment exhibits a more fluctuating pattern. It initially increased from $11,833 million in 2020 to a peak of $14,440 million in 2021, followed by a decline to $11,232 million by 2023. However, it recovers in the subsequent years, reaching $14,666 million in 2025. This volatility suggests variable capital contributions, retained earnings, or other equity movements during the period analyzed.
The debt to equity ratio, which measures leverage by comparing total debt to shareholders’ investment, reflects these underlying changes. It starts at 1.18 in 2020, decreases to 1.05 in 2021, indicating a stronger equity base relative to debt, then rises sharply to 1.7 in 2023. Following this peak, it declines moderately to 1.36 by 2025. The rising ratio through 2023 implies an increasing reliance on debt financing, while the subsequent reduction may indicate efforts to rebalance the capital structure, either through equity increases or controlled debt growth.
- Total debt (including operating lease liability)
- Consistently increases from $13,974 million to $19,875 million over six years, indicating rising leverage.
- Shareholders’ investment
- Varies over time with an initial increase, subsequent decline, then recovery, suggesting fluctuating equity funding or retained earnings.
- Debt to equity ratio
- Decreases initially, peaks in 2023, then declines, showing shifting reliance between debt and equity financing.
Debt to Capital
Target Corp., debt to capital calculation, comparison to benchmarks
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt and other borrowings | 1,636) | 1,116) | 130) | 171) | 1,144) | 161) | |
| Long-term debt and other borrowings, excluding current portion | 14,304) | 14,922) | 16,009) | 13,549) | 11,536) | 11,338) | |
| Total debt | 15,940) | 16,038) | 16,139) | 13,720) | 12,680) | 11,499) | |
| Shareholders’ investment | 14,666) | 13,432) | 11,232) | 12,827) | 14,440) | 11,833) | |
| Total capital | 30,606) | 29,470) | 27,371) | 26,547) | 27,120) | 23,332) | |
| Solvency Ratio | |||||||
| Debt to capital1 | 0.52 | 0.54 | 0.59 | 0.52 | 0.47 | 0.49 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 0.24 | 0.24 | 0.28 | 0.33 | 0.31 | |
| Walmart Inc. | 0.33 | 0.36 | 0.37 | 0.34 | 0.38 | 0.42 | |
| Debt to Capital, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 0.37 | 0.38 | 0.36 | 0.38 | 0.41 | |
| Debt to Capital, Industry | |||||||
| Consumer Staples | — | 0.53 | 0.54 | 0.52 | 0.52 | 0.55 | |
Based on: 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01).
1 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 15,940 ÷ 30,606 = 0.52
2 Click competitor name to see calculations.
- Total Debt
- The total debt of the company increased steadily from 11,499 million US dollars in early 2020 to a peak of 16,139 million in early 2023. Subsequently, a slight decline is observed, with debt decreasing marginally to 16,038 million in 2024 and further to 15,940 million in 2025. This indicates the company undertook more borrowing consistently over the initial years but began to moderate and slightly reduce its debt load in the most recent periods.
- Total Capital
- Total capital showed an overall upward trend during the entire period examined. Starting at 23,332 million US dollars in 2020, there was a significant increase to 27,120 million in 2021. Though a decline occurred in 2022 down to 26,547 million, the figure rebounded in subsequent years, reaching 27,371 million in 2023 and steadily increasing to 29,470 million in 2024 and 30,606 million in 2025. This suggests a broader growth or strengthening of the company’s capital base despite some volatility.
- Debt to Capital Ratio
- The debt to capital ratio illustrates fluctuations in the company’s leverage over time. It started at 0.49 in 2020 and improved slightly to 0.47 in 2021, indicating a marginal reduction in leverage. However, this was followed by an increase to 0.52 in 2022 and a significant rise to 0.59 in 2023. The ratio then decreased to 0.54 in 2024 and further to 0.52 in 2025. Overall, the company experienced increased leverage with a peak in 2023 before making efforts to reduce its relative debt level in the last two years.
Debt to Capital (including Operating Lease Liability)
Target Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt and other borrowings | 1,636) | 1,116) | 130) | 171) | 1,144) | 161) | |
| Long-term debt and other borrowings, excluding current portion | 14,304) | 14,922) | 16,009) | 13,549) | 11,536) | 11,338) | |
| Total debt | 15,940) | 16,038) | 16,139) | 13,720) | 12,680) | 11,499) | |
| Current portion of operating lease liabilities | 353) | 329) | 296) | 254) | 211) | 200) | |
| Noncurrent operating lease liabilities | 3,582) | 3,279) | 2,638) | 2,493) | 2,218) | 2,275) | |
| Total debt (including operating lease liability) | 19,875) | 19,646) | 19,073) | 16,467) | 15,109) | 13,974) | |
| Shareholders’ investment | 14,666) | 13,432) | 11,232) | 12,827) | 14,440) | 11,833) | |
| Total capital (including operating lease liability) | 34,541) | 33,078) | 30,305) | 29,294) | 29,549) | 25,807) | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.58 | 0.59 | 0.63 | 0.56 | 0.51 | 0.54 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Costco Wholesale Corp. | — | 0.30 | 0.30 | 0.35 | 0.39 | 0.38 | |
| Walmart Inc. | 0.40 | 0.42 | 0.43 | 0.41 | 0.44 | 0.49 | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Consumer Staples Distribution & Retail | — | 0.43 | 0.44 | 0.42 | 0.44 | 0.48 | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Consumer Staples | — | 0.55 | 0.56 | 0.54 | 0.54 | 0.58 | |
Based on: 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01).
1 2025 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 19,875 ÷ 34,541 = 0.58
2 Click competitor name to see calculations.
The financial data indicates that the total debt of the company, including operating lease liabilities, has exhibited a consistent upward trajectory over the observed periods. Starting from approximately 13,974 million US dollars in early 2020, the total debt increased steadily to reach nearly 19,875 million US dollars by early 2025. This rise reflects an expanding leverage profile or growing financing needs over the five-year span.
Similarly, total capital, which includes operating lease liabilities, has also trended upwards across the same timeframe. From about 25,807 million US dollars in early 2020, total capital showed fluctuations but ultimately increased to approximately 34,541 million US dollars by early 2025. This growth in capital indicates overall expansion in the company's capital base, possibly driven by retained earnings, additional financing, or capital investments.
The debt to capital ratio reveals more nuanced leverage dynamics. Initially, the ratio decreased from 0.54 in early 2020 to 0.51 in early 2021, suggesting a relative reduction in debt compared to capital. However, from 2021 onwards, the ratio reversed course and increased to 0.56 in early 2022 and further to a peak of 0.63 in early 2023. This peak implies a higher proportion of debt within the company’s capital structure at that time, indicating increased financial leverage or borrowing. Subsequently, the ratio decreased to 0.59 in early 2024 and 0.58 in early 2025, demonstrating some deleveraging or relative capital growth compared to debt in the most recent periods.
- Total debt
- Shows a steady increase from 13,974 million US dollars in 2020 to 19,875 million US dollars in 2025.
- Total capital
- Increased from 25,807 million US dollars in 2020 to 34,541 million US dollars in 2025 with some fluctuations.
- Debt to capital ratio
- Decreased initially from 0.54 to 0.51, peaked at 0.63 in 2023, then moderately declined to 0.58 by 2025.
Overall, the data reflects expanding debt levels alongside increasing capital, with leverage rising and then moderating in recent years. The peak in the debt to capital ratio in early 2023 suggests a period of heightened financial risk or aggressive financing, which has since been somewhat mitigated.
Debt to Assets
Target Corp., debt to assets calculation, comparison to benchmarks
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt and other borrowings | 1,636) | 1,116) | 130) | 171) | 1,144) | 161) | |
| Long-term debt and other borrowings, excluding current portion | 14,304) | 14,922) | 16,009) | 13,549) | 11,536) | 11,338) | |
| Total debt | 15,940) | 16,038) | 16,139) | 13,720) | 12,680) | 11,499) | |
| Total assets | 57,769) | 55,356) | 53,335) | 53,811) | 51,248) | 42,779) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.28 | 0.29 | 0.30 | 0.25 | 0.25 | 0.27 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 0.11 | 0.11 | 0.13 | 0.14 | 0.15 | |
| Walmart Inc. | 0.18 | 0.19 | 0.18 | 0.17 | 0.19 | 0.23 | |
| Debt to Assets, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 0.19 | 0.19 | 0.18 | 0.19 | 0.22 | |
| Debt to Assets, Industry | |||||||
| Consumer Staples | — | 0.31 | 0.31 | 0.30 | 0.30 | 0.33 | |
Based on: 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01).
1 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 15,940 ÷ 57,769 = 0.28
2 Click competitor name to see calculations.
- Total Debt
- The total debt of the company has shown a consistent upward trend from February 1, 2020, to January 28, 2023, increasing from $11,499 million to $16,139 million. After this peak, the total debt slightly decreased to $16,038 million in February 3, 2024, and further to $15,940 million by February 1, 2025, indicating a stabilization or mild reduction in debt levels after a period of growth.
- Total Assets
- Total assets experienced a significant increase over the observed periods, rising from $42,779 million on February 1, 2020, to $57,769 million on February 1, 2025. This growth was relatively steady, with slight fluctuations between January 29, 2022, and January 28, 2023, where assets slightly decreased before continuing their upward trend.
- Debt to Assets Ratio
- The debt to assets ratio showed a slight decrease from 0.27 in 2020 to 0.25 in both 2021 and 2022, suggesting an improvement in the company's leverage position during this period. However, in 2023, the ratio increased to 0.30, indicating a rise in leverage relative to the asset base. This ratio then declined marginally to 0.29 in 2024 and 0.28 in 2025, suggesting a cautious reduction in leverage after the 2023 peak.
- Overall Insights
- Over the six-year period, the company increased both its debt and asset base substantially. The growth in assets outpaced the increase in debt in several periods, leading to a generally stable leverage ratio with temporary fluctuations. The peak in the debt to asset ratio in 2023 may indicate increased borrowing or reduced asset growth during that year. The subsequent decrease in this ratio suggests efforts to manage and reduce leverage while continuing asset expansion, reflecting a balanced approach to growth and risk management.
Debt to Assets (including Operating Lease Liability)
Target Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt and other borrowings | 1,636) | 1,116) | 130) | 171) | 1,144) | 161) | |
| Long-term debt and other borrowings, excluding current portion | 14,304) | 14,922) | 16,009) | 13,549) | 11,536) | 11,338) | |
| Total debt | 15,940) | 16,038) | 16,139) | 13,720) | 12,680) | 11,499) | |
| Current portion of operating lease liabilities | 353) | 329) | 296) | 254) | 211) | 200) | |
| Noncurrent operating lease liabilities | 3,582) | 3,279) | 2,638) | 2,493) | 2,218) | 2,275) | |
| Total debt (including operating lease liability) | 19,875) | 19,646) | 19,073) | 16,467) | 15,109) | 13,974) | |
| Total assets | 57,769) | 55,356) | 53,335) | 53,811) | 51,248) | 42,779) | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.34 | 0.35 | 0.36 | 0.31 | 0.29 | 0.33 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Costco Wholesale Corp. | — | 0.14 | 0.15 | 0.17 | 0.19 | 0.20 | |
| Walmart Inc. | 0.23 | 0.24 | 0.24 | 0.23 | 0.25 | 0.31 | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Consumer Staples Distribution & Retail | — | 0.24 | 0.24 | 0.23 | 0.25 | 0.29 | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Consumer Staples | — | 0.34 | 0.34 | 0.33 | 0.33 | 0.37 | |
Based on: 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01).
1 2025 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 19,875 ÷ 57,769 = 0.34
2 Click competitor name to see calculations.
The financial data reveals several notable trends and shifts over the six-year period. Total debt, including operating lease liabilities, displays a consistent upward trajectory, rising from $13,974 million in early 2020 to $19,875 million by early 2025. This indicates an increase in the company's financial obligations over time.
Total assets also demonstrate growth but at a somewhat slower pace compared to total debt. Assets increased from $42,779 million in 2020 to $57,769 million in 2025, showing expansion in the asset base but with some variability, particularly a slight dip from 2022 to 2023 followed by recovery.
The debt to assets ratio reflects the relationship between debt and asset levels and fluctuates during the period. Initially, this ratio decreased from 0.33 in 2020 to 0.29 in 2021, suggesting improved solvency or reduced leverage relative to assets. However, from 2021 onwards, the ratio rose back to 0.31 in 2022 and peaked at 0.36 in 2023, indicating an increasing reliance on debt financing relative to assets. Subsequently, there is a modest decline to 0.34 by 2025.
Overall, the data suggests that while the company’s asset base has expanded, the growth in total debt has been more pronounced, leading to higher leverage and potentially increased financial risk during the middle years of the period. The slight reduction in the debt to assets ratio at the end could point to efforts to manage or rebalance the capital structure.
- Total Debt (including operating lease liability)
- Consistent increase from $13.97 billion in 2020 to $19.88 billion in 2025, indicating growing financial obligations.
- Total Assets
- Growth from $42.78 billion in 2020 to $57.77 billion in 2025, with a minor decline in 2023 before recovering.
- Debt to Assets Ratio
- Initial improvement from 0.33 to 0.29 (2020 to 2021), followed by a rise to 0.36 in 2023, then slight reduction to 0.34 by 2025. This trend reflects changing leverage levels and capital structure dynamics.
Financial Leverage
Target Corp., financial leverage calculation, comparison to benchmarks
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Total assets | 57,769) | 55,356) | 53,335) | 53,811) | 51,248) | 42,779) | |
| Shareholders’ investment | 14,666) | 13,432) | 11,232) | 12,827) | 14,440) | 11,833) | |
| Solvency Ratio | |||||||
| Financial leverage1 | 3.94 | 4.12 | 4.75 | 4.20 | 3.55 | 3.62 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 2.96 | 2.75 | 3.11 | 3.37 | 3.04 | |
| Walmart Inc. | 2.87 | 3.01 | 3.17 | 2.94 | 3.12 | 3.17 | |
| Financial Leverage, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 3.12 | 3.24 | 3.11 | 3.21 | 3.20 | |
| Financial Leverage, Industry | |||||||
| Consumer Staples | — | 3.62 | 3.71 | 3.59 | 3.59 | 3.76 | |
Based on: 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01).
1 2025 Calculation
Financial leverage = Total assets ÷ Shareholders’ investment
= 57,769 ÷ 14,666 = 3.94
2 Click competitor name to see calculations.
- Total assets
- The total assets show a consistent upward trend over the analyzed period, increasing from $42,779 million in early 2020 to $57,769 million in early 2025. There is a steady rise with slight deceleration between 2022 and 2023, but the overall growth reflects asset expansion and potentially increased investment in the company's resources.
- Shareholders’ investment
- Shareholders’ investment exhibits more variability compared to total assets. It rose from $11,833 million in early 2020 to a peak of $14,440 million in early 2021, followed by a decline through 2023 reaching as low as $11,232 million. Subsequently, it recovered strongly to $14,666 million by early 2025. This fluctuation suggests changing equity levels, potentially influenced by share buybacks, dividend payments, or retained earnings variations over time.
- Financial leverage
- The financial leverage ratio remains above 3.5 throughout the period, indicating the company continues to use significant debt relative to equity. Starting at 3.62 in 2020, it decreased slightly to 3.55 in 2021, then increased sharply to 4.75 in 2023, before declining to 3.94 in 2025. This pattern suggests rising reliance on debt relative to equity in the middle years, with a partial deleveraging or equity increase in the later period.
- Overall financial structure insights
- The combination of steadily growing total assets and fluctuating shareholders' investment indicates the company adjusts its capital structure dynamically. The rising and then somewhat receding financial leverage ratio points to phases of increased borrowing to finance asset growth, followed by efforts to reduce leverage or strengthen equity base. These trends could reflect strategic financial management decisions in response to market conditions and internal growth objectives.
Interest Coverage
Target Corp., interest coverage calculation, comparison to benchmarks
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net earnings | 4,091) | 4,138) | 2,780) | 6,946) | 4,368) | 3,281) | |
| Less: Discontinued operations, net of tax | —) | —) | —) | —) | —) | 12) | |
| Add: Income tax expense | 1,170) | 1,159) | 638) | 1,961) | 1,178) | 921) | |
| Add: Net interest expense | 411) | 502) | 478) | 421) | 977) | 477) | |
| Earnings before interest and tax (EBIT) | 5,672) | 5,799) | 3,896) | 9,328) | 6,523) | 4,667) | |
| Solvency Ratio | |||||||
| Interest coverage1 | 13.80 | 11.55 | 8.15 | 22.16 | 6.68 | 9.78 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 58.63 | 54.04 | 50.62 | 40.06 | 34.54 | |
| Walmart Inc. | 10.64 | 9.14 | 9.00 | 10.38 | 9.88 | 8.74 | |
| Interest Coverage, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 12.00 | 11.46 | 14.77 | 10.47 | 10.17 | |
| Interest Coverage, Industry | |||||||
| Consumer Staples | — | 10.92 | 11.37 | 15.69 | 11.46 | 11.62 | |
Based on: 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01).
1 2025 Calculation
Interest coverage = EBIT ÷ Interest expense
= 5,672 ÷ 411 = 13.80
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT values demonstrate considerable volatility over the observed periods. Starting at 4,667 million USD in early 2020, EBIT rose significantly to a peak of 9,328 million USD by early 2022. This was followed by a sharp decline to 3,896 million USD in early 2023, after which there was a moderate recovery to 5,799 million USD in early 2024 and a slight decrease to 5,672 million USD in early 2025. Overall, the trend indicates cyclical performance with a significant surge occurring before a notable drop and partial recovery.
- Net interest expense
- Net interest expense displays a less consistent pattern. It nearly doubled from 477 million USD in early 2020 to 977 million USD in early 2021, then sharply decreased to 421 million USD in early 2022. Subsequent years show fluctuations within a narrower range, between 411 million USD and 502 million USD. This variability suggests changes in the company's debt levels, interest rates, or refinancing activities over the years.
- Interest coverage ratio
- The interest coverage ratio exhibits significant fluctuation correlating with the variations in EBIT and interest expense. It was relatively high at 9.78 in early 2020, dropped to 6.68 in early 2021, then increased sharply to 22.16 in early 2022, likely driven by the EBIT peak. Afterward, it fell to 8.15 in early 2023, followed by an improvement to 11.55 in early 2024 and further to 13.8 in early 2025. These changes indicate variability in the company's ability to meet interest obligations, with the highest capacity observed in early 2022 and a trend toward improved coverage in the most recent periods.
Fixed Charge Coverage
Target Corp., fixed charge coverage calculation, comparison to benchmarks
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net earnings | 4,091) | 4,138) | 2,780) | 6,946) | 4,368) | 3,281) | |
| Less: Discontinued operations, net of tax | —) | —) | —) | —) | —) | 12) | |
| Add: Income tax expense | 1,170) | 1,159) | 638) | 1,961) | 1,178) | 921) | |
| Add: Net interest expense | 411) | 502) | 478) | 421) | 977) | 477) | |
| Earnings before interest and tax (EBIT) | 5,672) | 5,799) | 3,896) | 9,328) | 6,523) | 4,667) | |
| Add: Operating lease cost | 641) | 550) | 467) | 387) | 332) | 287) | |
| Earnings before fixed charges and tax | 6,313) | 6,349) | 4,363) | 9,715) | 6,855) | 4,954) | |
| Net interest expense | 411) | 502) | 478) | 421) | 977) | 477) | |
| Operating lease cost | 641) | 550) | 467) | 387) | 332) | 287) | |
| Fixed charges | 1,052) | 1,052) | 945) | 808) | 1,309) | 764) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 6.00 | 6.04 | 4.62 | 12.02 | 5.24 | 6.48 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Costco Wholesale Corp. | — | 22.50 | 19.10 | 18.23 | 15.30 | 14.03 | |
| Walmart Inc. | 6.18 | 5.40 | 4.84 | 5.38 | 5.16 | 4.82 | |
| Fixed Charge Coverage, Sector | |||||||
| Consumer Staples Distribution & Retail | — | 6.71 | 5.95 | 7.41 | 5.88 | 5.60 | |
| Fixed Charge Coverage, Industry | |||||||
| Consumer Staples | — | 7.34 | 7.38 | 9.06 | 7.46 | 7.19 | |
Based on: 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01).
1 2025 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 6,313 ÷ 1,052 = 6.00
2 Click competitor name to see calculations.
- Earnings before fixed charges and tax
- The earnings before fixed charges and tax generally show a strong upward trend from 2020 to 2022, increasing from 4,954 million USD to 9,715 million USD. However, a significant decline is observed in 2023, dropping sharply to 4,363 million USD. The earnings partially recover in 2024 to 6,349 million USD and level off slightly in 2025 at 6,313 million USD, indicating some volatility in operational performance across the years.
- Fixed charges
- Fixed charges fluctuate during the period. They increase notably from 764 million USD in 2020 to 1,309 million USD in 2021, sharply decreasing to 808 million USD in 2022. From 2023 onwards, fixed charges rise steadily again, reaching 1,052 million USD in both 2024 and 2025. These variations may reflect changes in interest expenses or lease obligations over time.
- Fixed charge coverage ratio
- The fixed charge coverage ratio shows considerable variability over the years. It starts at 6.48 in 2020, declines to 5.24 in 2021, then peaks significantly at 12.02 in 2022, associated with the drop in fixed charges in that year. The ratio decreases to 4.62 in 2023 coinciding with the steep drop in earnings and subsequent increase in fixed charges. In 2024 and 2025, the ratio stabilizes around 6.0, reflecting moderate coverage of fixed charges by earnings. Overall, the coverage ratio indicates fluctuating ability to meet fixed obligations, with the most comfortable coverage observed in 2022 and lowest in 2023.