Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Target Corp. (NYSE:TGT)

Analysis of Profitability Ratios

Beginner level


Profitability Ratios (Summary)

Target Corp., profitability ratios

Microsoft Excel LibreOffice Calc
Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Jan 30, 2016 Jan 31, 2015
Return on Sales
Gross profit margin 28.87% 28.39% 28.87% 29.68% 29.53% 29.39%
Operating profit margin 6.04% 5.52% 6.00% 7.15% 7.49% 6.25%
Net profit margin 4.25% 3.95% 4.08% 3.94% 4.56% -2.25%
Return on Investment
Return on equity (ROE) 27.73% 26.00% 25.06% 24.99% 25.96% -11.69%
Return on assets (ROA) 7.67% 7.11% 7.52% 7.31% 8.35% -3.95%

Based on: 10-K (filing date: 2020-03-11), 10-K (filing date: 2019-03-13), 10-K (filing date: 2018-03-14), 10-K (filing date: 2017-03-08), 10-K (filing date: 2016-03-11), 10-K (filing date: 2015-03-13).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Target Corp.’s gross profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Target Corp.’s operating profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Target Corp.’s net profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Target Corp.’s ROE improved from 2018 to 2019 and from 2019 to 2020.
ROA A profitability ratio calculated as net income divided by total assets. Target Corp.’s ROA deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Gross Profit Margin

Target Corp., gross profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Jan 30, 2016 Jan 31, 2015
Selected Financial Data (US$ in millions)
Gross margin 22,266  21,134  20,754  20,623  21,788  21,340 
Sales 77,130  74,433  71,879  69,495  73,785  72,618 
Profitability Ratio
Gross profit margin1 28.87% 28.39% 28.87% 29.68% 29.53% 29.39%
Benchmarks
Gross Profit Margin, Competitors2
Amazon.com Inc. 40.99% 40.25% 37.07% 35.09% 33.04%
Costco Wholesale Corp. 11.02% 11.04% 11.33% 11.35% 11.09%
Dollar General Corp. 30.59% 30.45% 30.77% 30.85% 30.96% 30.69%
Home Depot Inc. 34.09% 34.34% 34.05% 34.16% 34.19% 34.81%
Lowe’s Cos. Inc. 31.80% 32.12% 34.11% 34.55% 34.82% 34.79%
TJX Cos. Inc. 28.46% 28.59% 28.89% 28.98% 28.79% 28.55%
Walmart Inc. 24.10% 24.50% 24.68% 24.94% 24.58% 24.29%

Based on: 10-K (filing date: 2020-03-11), 10-K (filing date: 2019-03-13), 10-K (filing date: 2018-03-14), 10-K (filing date: 2017-03-08), 10-K (filing date: 2016-03-11), 10-K (filing date: 2015-03-13).

1 2020 Calculation
Gross profit margin = 100 × Gross margin ÷ Sales
= 100 × 22,266 ÷ 77,130 = 28.87%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Target Corp.’s gross profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level.

Operating Profit Margin

Target Corp., operating profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Jan 30, 2016 Jan 31, 2015
Selected Financial Data (US$ in millions)
Operating income 4,658  4,110  4,312  4,969  5,530  4,535 
Sales 77,130  74,433  71,879  69,495  73,785  72,618 
Profitability Ratio
Operating profit margin1 6.04% 5.52% 6.00% 7.15% 7.49% 6.25%
Benchmarks
Operating Profit Margin, Competitors2
Amazon.com Inc. 5.18% 5.33% 2.31% 3.08% 2.09%
Costco Wholesale Corp. 3.17% 3.24% 3.26% 3.16% 3.19%
Dollar General Corp. 8.30% 8.26% 8.55% 9.39% 9.53% 9.36%
Home Depot Inc. 14.37% 14.35% 14.55% 14.19% 13.30% 12.59%
Lowe’s Cos. Inc. 8.75% 5.63% 9.60% 8.99% 8.41% 8.52%
TJX Cos. Inc. 10.59% 10.82% 10.84% 11.60% 11.97% 12.40%
Walmart Inc. 3.96% 4.30% 4.12% 4.73% 5.04% 5.63%
Operating Profit Margin, Sector
General Retailers 5.66% 5.89% 5.72% 5.97% 6.04%
Operating Profit Margin, Industry
Consumer Services 7.83% 8.04% 8.34% 8.43% 8.55%

Based on: 10-K (filing date: 2020-03-11), 10-K (filing date: 2019-03-13), 10-K (filing date: 2018-03-14), 10-K (filing date: 2017-03-08), 10-K (filing date: 2016-03-11), 10-K (filing date: 2015-03-13).

1 2020 Calculation
Operating profit margin = 100 × Operating income ÷ Sales
= 100 × 4,658 ÷ 77,130 = 6.04%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Target Corp.’s operating profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Net Profit Margin

Target Corp., net profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Jan 30, 2016 Jan 31, 2015
Selected Financial Data (US$ in millions)
Net earnings (loss) 3,281  2,937  2,934  2,737  3,363  (1,636)
Sales 77,130  74,433  71,879  69,495  73,785  72,618 
Profitability Ratio
Net profit margin1 4.25% 3.95% 4.08% 3.94% 4.56% -2.25%
Benchmarks
Net Profit Margin, Competitors2
Amazon.com Inc. 4.13% 4.33% 1.71% 1.74% 0.56%
Costco Wholesale Corp. 2.45% 2.26% 2.12% 2.02% 2.09%
Dollar General Corp. 6.17% 6.20% 6.56% 5.69% 5.72% 5.63%
Home Depot Inc. 10.20% 10.28% 8.55% 8.41% 7.92% 7.63%
Lowe’s Cos. Inc. 5.93% 3.25% 5.02% 4.76% 4.31% 4.80%
TJX Cos. Inc. 7.84% 7.85% 7.27% 6.93% 7.36% 7.62%
Walmart Inc. 2.86% 1.31% 1.99% 2.83% 3.07% 3.39%
Net Profit Margin, Sector
General Retailers 3.41% 3.62% 3.43% 3.57% 3.12%
Net Profit Margin, Industry
Consumer Services 5.03% 5.07% 6.37% 5.14% 4.68%

Based on: 10-K (filing date: 2020-03-11), 10-K (filing date: 2019-03-13), 10-K (filing date: 2018-03-14), 10-K (filing date: 2017-03-08), 10-K (filing date: 2016-03-11), 10-K (filing date: 2015-03-13).

1 2020 Calculation
Net profit margin = 100 × Net earnings (loss) ÷ Sales
= 100 × 3,281 ÷ 77,130 = 4.25%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Target Corp.’s net profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Return on Equity (ROE)

Target Corp., ROE calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Jan 30, 2016 Jan 31, 2015
Selected Financial Data (US$ in millions)
Net earnings (loss) 3,281  2,937  2,934  2,737  3,363  (1,636)
Shareholders’ investment 11,833  11,297  11,709  10,953  12,957  13,997 
Profitability Ratio
ROE1 27.73% 26.00% 25.06% 24.99% 25.96% -11.69%
Benchmarks
ROE, Competitors2
Amazon.com Inc. 18.67% 23.13% 10.95% 12.29% 4.45%
Costco Wholesale Corp. 24.00% 24.49% 24.86% 19.46% 22.39%
Dollar General Corp. 25.55% 24.77% 25.12% 23.14% 21.66% 18.66%
Home Depot Inc. 593.54% 183.64% 110.97% 68.06%
Lowe’s Cos. Inc. 217.09% 63.50% 58.69% 48.07% 33.26% 27.07%
TJX Cos. Inc. 55.01% 60.61% 50.66% 50.95% 52.88% 51.95%
Walmart Inc. 19.93% 9.20% 12.66% 17.54% 18.24% 20.10%
ROE, Sector
General Retailers 24.63% 25.67% 24.80% 24.09% 20.20%
ROE, Industry
Consumer Services 20.83% 21.33% 27.27% 21.40% 20.06%

Based on: 10-K (filing date: 2020-03-11), 10-K (filing date: 2019-03-13), 10-K (filing date: 2018-03-14), 10-K (filing date: 2017-03-08), 10-K (filing date: 2016-03-11), 10-K (filing date: 2015-03-13).

1 2020 Calculation
ROE = 100 × Net earnings (loss) ÷ Shareholders’ investment
= 100 × 3,281 ÷ 11,833 = 27.73%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Target Corp.’s ROE improved from 2018 to 2019 and from 2019 to 2020.

Return on Assets (ROA)

Target Corp., ROA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Jan 30, 2016 Jan 31, 2015
Selected Financial Data (US$ in millions)
Net earnings (loss) 3,281  2,937  2,934  2,737  3,363  (1,636)
Total assets 42,779  41,290  38,999  37,431  40,262  41,404 
Profitability Ratio
ROA1 7.67% 7.11% 7.52% 7.31% 8.35% -3.95%
Benchmarks
ROA, Competitors2
Amazon.com Inc. 5.14% 6.19% 2.31% 2.84% 0.91%
Costco Wholesale Corp. 8.06% 7.68% 7.37% 7.09% 7.11%
Dollar General Corp. 7.50% 12.04% 12.30% 10.72% 10.35% 9.49%
Home Depot Inc. 21.94% 25.27% 19.38% 18.52% 16.47% 15.88%
Lowe’s Cos. Inc. 10.85% 6.71% 9.77% 8.99% 8.14% 8.48%
TJX Cos. Inc. 13.55% 21.36% 18.55% 17.84% 19.81% 19.91%
Walmart Inc. 6.29% 3.04% 4.82% 6.86% 7.36% 8.03%
ROA, Sector
General Retailers 6.74% 7.63% 7.25% 7.90% 6.85%
ROA, Industry
Consumer Services 5.78% 6.13% 8.54% 6.92% 6.80%

Based on: 10-K (filing date: 2020-03-11), 10-K (filing date: 2019-03-13), 10-K (filing date: 2018-03-14), 10-K (filing date: 2017-03-08), 10-K (filing date: 2016-03-11), 10-K (filing date: 2015-03-13).

1 2020 Calculation
ROA = 100 × Net earnings (loss) ÷ Total assets
= 100 × 3,281 ÷ 42,779 = 7.67%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Target Corp.’s ROA deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.