Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Balance Sheet: Assets
- Cash Flow Statement
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Dividend Discount Model (DDM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Analysis of Debt
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Long-term Activity Ratios (Summary)
Target Corp., long-term (investment) activity 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).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio shows an increasing trend from 2.97 in February 2020 to a peak of 3.76 in January 2022, indicating improved efficiency in utilizing fixed assets to generate sales. After this peak, the ratio declines to 3.23 by February 2025, suggesting a reduction in fixed asset efficiency over the later periods.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- When including operating leases and right-of-use assets, the net fixed asset turnover ratio follows a similar pattern. It rises from 2.74 in February 2020 to 3.45 in January 2022, indicating enhanced asset utilization with the expanded asset base. Following this, the ratio decreases steadily to 2.9 by February 2025, reflecting a diminished turnover possibly due to increased leasing commitments or asset base growth outpacing sales.
- Total Asset Turnover
- The total asset turnover ratio remains steady at 1.83 in both February 2020 and January 2021, then increases to 2.05 by January 2023, demonstrating an improvement in overall asset efficiency. However, this upward trend reverses afterward, with the ratio falling to 1.84 by February 2025, indicating a decline in the company's ability to generate sales from its total asset base in the most recent periods.
- Equity Turnover
- The equity turnover ratio shows substantial volatility. It starts at 6.6 in February 2020, slightly decreases to 6.48 in January 2021, then experiences a sharp increase to 9.72 in January 2023, reflecting a period of significantly higher sales generated per equity dollar. Subsequently, the ratio declines to 7.27 by February 2025, suggesting a reduction in the efficiency of equity employment over the latest periods, though remaining above the initial levels.
Net Fixed Asset Turnover
Target Corp., net fixed asset turnover 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 sales | |||||||
| Property and equipment, net | |||||||
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover1 | |||||||
| Benchmarks | |||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||
| Costco Wholesale Corp. | |||||||
| Walmart Inc. | |||||||
| Net Fixed Asset Turnover, Sector | |||||||
| Consumer Staples Distribution & Retail | |||||||
| Net Fixed Asset Turnover, Industry | |||||||
| Consumer Staples | |||||||
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
Net fixed asset turnover = Net sales ÷ Property and equipment, net
= ÷ =
2 Click competitor name to see calculations.
- Net Sales
- Over the examined periods, net sales demonstrated a consistent upward trajectory from US$78,112 million in early 2020 to a peak of US$109,120 million in early 2023. Following this peak, a slight decline is observed in the subsequent years, with net sales reaching US$106,566 million by early 2025. Despite this minor decrease, overall net sales remain significantly higher than the initial figures, indicating sustained revenue growth over the medium term.
- Property and Equipment, Net
- The net value of property and equipment exhibited a steady increase throughout the timeline, starting at US$26,283 million in 2020 and rising to approximately US$33,022 million by 2025. This gradual growth suggests ongoing investment in fixed assets, potentially reflecting expansion activities or asset upgrades. The most notable increment occurred between early 2022 and early 2023, coinciding with the period when net sales peaked.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, which measures the efficiency of asset utilization to generate sales, initially rose from 2.97 in 2020 to 3.76 in 2022, indicating improved efficiency in using fixed assets. However, from 2022 onwards, the ratio declined to 3.23 by early 2025. This downturn may imply that asset growth outpaced sales growth in the latter periods, resulting in slightly less efficient use of fixed assets. Despite the decline, the ratio remains above the 2020 level, suggesting overall improved asset use compared to the initial year.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Target Corp., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | |||||||
| Property and equipment, net | |||||||
| Operating lease assets | |||||||
| Property and equipment, net (including operating lease, right-of-use asset) | |||||||
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | |||||||
| Benchmarks | |||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||
| Costco Wholesale Corp. | |||||||
| Walmart Inc. | |||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | |||||||
| Consumer Staples Distribution & Retail | |||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | |||||||
| Consumer Staples | |||||||
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
- Net Sales
- Net sales exhibited a consistent upward trajectory from 2020 through 2023, increasing from 78,112 million US dollars in February 2020 to a peak of 109,120 million US dollars in January 2023. However, a slight decline is observed in the subsequent years, with net sales decreasing to 107,412 million US dollars in February 2024 and further to 106,566 million US dollars in February 2025. This suggests a plateauing or mild contraction in revenue after a period of strong growth.
- Property and Equipment, Net
- The net value of property and equipment, including operating lease right-of-use assets, steadily increased over the entire period under review. Beginning at 28,519 million US dollars in February 2020, this value rose continuously to 36,785 million US dollars by February 2025. This represents ongoing investment in assets or accumulation of leased assets, indicating a focus on expanding or maintaining operational infrastructure.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio demonstrates an improving efficiency in asset utilization from 2.74 in February 2020 to its highest point of 3.45 in January 2022. After this peak, the ratio declines slightly, reaching 2.9 by February 2025. This decline, concurrent with rising property and equipment values and the plateauing of net sales, may reflect diminishing returns on asset investments or slower sales growth relative to asset base expansion in the latter periods.
Total Asset Turnover
Target Corp., total asset turnover 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 sales | |||||||
| Total assets | |||||||
| Long-term Activity Ratio | |||||||
| Total asset turnover1 | |||||||
| Benchmarks | |||||||
| Total Asset Turnover, Competitors2 | |||||||
| Costco Wholesale Corp. | |||||||
| Walmart Inc. | |||||||
| Total Asset Turnover, Sector | |||||||
| Consumer Staples Distribution & Retail | |||||||
| Total Asset Turnover, Industry | |||||||
| Consumer Staples | |||||||
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
Total asset turnover = Net sales ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Net Sales
- Net sales exhibited a consistent upward trend from 78,112 million US dollars in February 2020 to a peak of 109,120 million US dollars in January 2023. Subsequently, there was a slight decline observed in the following two years, with net sales decreasing to 107,412 million US dollars in February 2024 and further to 106,566 million US dollars by February 2025.
- Total Assets
- Total assets showed steady growth over the entire period analyzed. Starting from 42,779 million US dollars in February 2020, total assets increased consistently each year, reaching 57,769 million US dollars by February 2025. This progression suggests an ongoing expansion of the company's asset base.
- Total Asset Turnover
- The total asset turnover ratio initially remained stable at 1.83 from 2020 to 2021. It then improved, peaking at 2.05 in January 2023, indicating enhanced efficiency in using assets to generate sales. However, after this peak, the ratio declined in the subsequent two years, descending to 1.94 in February 2024 and further to 1.84 in February 2025, approaching the starting level in 2020.
- Overall Insights
- The overall financial trends reflect a phase of growth in sales and asset acquisition up to 2023, followed by a slight deceleration in sales performance despite continued asset expansion. The peak in asset turnover ratio in early 2023 suggests a period of optimal operational efficiency, which diminished somewhat thereafter. This pattern may indicate challenges in maintaining sales growth relative to the expanding asset base in the more recent years.
Equity Turnover
Target Corp., equity turnover 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 sales | |||||||
| Shareholders’ investment | |||||||
| Long-term Activity Ratio | |||||||
| Equity turnover1 | |||||||
| Benchmarks | |||||||
| Equity Turnover, Competitors2 | |||||||
| Costco Wholesale Corp. | |||||||
| Walmart Inc. | |||||||
| Equity Turnover, Sector | |||||||
| Consumer Staples Distribution & Retail | |||||||
| Equity Turnover, Industry | |||||||
| Consumer Staples | |||||||
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
Equity turnover = Net sales ÷ Shareholders’ investment
= ÷ =
2 Click competitor name to see calculations.
- Net Sales
- Net sales demonstrated a consistent upward trajectory from 78,112 million US dollars in February 2020 to a peak of 109,120 million in January 2023. Following this peak, there was a slight decline observed, with values decreasing to 107,412 million in February 2024 and further marginally to 106,566 million in February 2025. This indicates a strong growth period culminating in early 2023, followed by a subtle contraction over the subsequent two years.
- Shareholders’ Investment
- Shareholders’ investment experienced fluctuations over the years. It increased from 11,833 million in February 2020 to 14,440 million in January 2021, then declined to 12,827 million in January 2022 and reached a low point of 11,232 million in January 2023. However, the investment rebounded thereafter, rising to 13,432 million in February 2024 and further to 14,666 million in February 2025. These movements suggest periods of both divestment and renewed shareholder confidence.
- Equity Turnover Ratio
- The equity turnover ratio showed an overall increasing trend from 6.6 in February 2020 to a peak of 9.72 in January 2023, indicating improving efficiency in utilizing shareholders' equity to generate sales. Post-peak, the ratio declined to 8 in February 2024 and 7.27 in February 2025, though remaining above the initial 2020 level. This decline aligns with the reduced net sales and indicates a slight reduction in asset utilization efficiency after early 2023.