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

Target Corp. (NYSE:TGT)

Analysis of Short-term (Operating) Activity Ratios

Beginner level

Short-term Activity Ratios (Summary)

Target Corp., short-term (operating) activity ratios

Microsoft Excel LibreOffice Calc
Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Jan 30, 2016
Turnover Ratios
Inventory turnover 6.21 6.10 5.61 5.91 5.88 6.05
Receivables turnover 146.43 154.88 117.77 140.12 190.92 209.62
Payables turnover 5.15 5.53 5.46 5.89 6.74 7.01
Working capital turnover 146.43 48.93
Average No. Days
Average inventory processing period 59 60 65 62 62 60
Add: Average receivable collection period 2 2 3 3 2 2
Operating cycle 61 62 68 65 64 62
Less: Average payables payment period 71 66 67 62 54 52
Cash conversion cycle -10 -4 1 3 10 10

Based on: 10-K (filing date: 2021-03-10), 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).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Target Corp.’s inventory turnover ratio improved from 2019 to 2020 and from 2020 to 2021.
Receivables turnover An activity ratio equal to revenue divided by receivables. Target Corp.’s receivables turnover ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Target Corp.’s payables turnover ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Target Corp.’s number of days of inventory outstanding improved from 2019 to 2020 and from 2020 to 2021.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Target Corp.’s operating cycle improved from 2019 to 2020 and from 2020 to 2021.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Target Corp.’s number of days of payables outstanding decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Target Corp.’s cash conversion cycle improved from 2019 to 2020 and from 2020 to 2021.

Inventory Turnover

Target Corp., inventory turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Jan 30, 2016
Selected Financial Data (US$ in millions)
Cost of sales 66,177  54,864  53,299  51,125  48,872  51,997 
Inventory 10,653  8,992  9,497  8,657  8,309  8,601 
Short-term Activity Ratio
Inventory turnover1 6.21 6.10 5.61 5.91 5.88 6.05
Benchmarks
Inventory Turnover, Competitors2
Amazon.com Inc. 9.80 8.08 8.10 6.98 7.70
Costco Wholesale Corp. 11.84 11.66 11.16 11.38 11.47
Dollar General Corp. 4.39 4.12 4.35 4.50 4.67 4.57
Home Depot Inc. 5.25 5.00 5.10 5.22 4.96 4.93
Lowe’s Cos. Inc. 3.71 3.73 3.85 3.97 4.07 4.07
TJX Cos. Inc. 5.66 6.13 6.08 6.09 6.47 5.96
Walmart Inc. 9.35 8.88 8.70 8.53 8.39 8.12
Inventory Turnover, Sector
General Retailers 7.88 7.47 7.46 7.26 7.26
Inventory Turnover, Industry
Consumer Services 9.13 8.81 8.51 8.33 8.28

Based on: 10-K (filing date: 2021-03-10), 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).

1 2021 Calculation
Inventory turnover = Cost of sales ÷ Inventory
= 66,177 ÷ 10,653 = 6.21

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Target Corp.’s inventory turnover ratio improved from 2019 to 2020 and from 2020 to 2021.

Receivables Turnover

Target Corp., receivables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Jan 30, 2016
Selected Financial Data (US$ in millions)
Sales 92,400  77,130  74,433  71,879  69,495  73,785 
Accounts and other receivables 631  498  632  513  364  352 
Short-term Activity Ratio
Receivables turnover1 146.43 154.88 117.77 140.12 190.92 209.62
Benchmarks
Receivables Turnover, Competitors2
Amazon.com Inc. 19.32 15.88 17.50 18.35 20.73
Costco Wholesale Corp. 105.30 97.30 82.94 88.11 92.71
Dollar General Corp.
Home Depot Inc. 44.15 52.34 55.89 51.69 46.62 46.84
Lowe’s Cos. Inc.
TJX Cos. Inc. 69.69 108.00 112.54 109.62 128.21 129.98
Walmart Inc. 85.21 82.74 81.22 88.31 82.49 85.10
Receivables Turnover, Sector
General Retailers 45.39 44.33 49.94 54.54 63.04
Receivables Turnover, Industry
Consumer Services 23.44 22.01 23.82 26.86 28.25

Based on: 10-K (filing date: 2021-03-10), 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).

1 2021 Calculation
Receivables turnover = Sales ÷ Accounts and other receivables
= 92,400 ÷ 631 = 146.43

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Target Corp.’s receivables turnover ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021.

Payables Turnover

Target Corp., payables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Jan 30, 2016
Selected Financial Data (US$ in millions)
Cost of sales 66,177  54,864  53,299  51,125  48,872  51,997 
Accounts payable 12,859  9,920  9,761  8,677  7,252  7,418 
Short-term Activity Ratio
Payables turnover1 5.15 5.53 5.46 5.89 6.74 7.01
Benchmarks
Payables Turnover, Competitors2
Amazon.com Inc. 3.22 3.51 3.64 3.23 3.49
Costco Wholesale Corp. 10.23 11.38 10.96 11.64 13.52
Dollar General Corp. 6.37 6.73 7.47 8.09 9.76 9.41
Home Depot Inc. 7.52 9.33 9.16 9.19 8.90 8.87
Lowe’s Cos. Inc. 5.51 6.42 5.85 6.86 6.40 6.84
TJX Cos. Inc. 5.09 11.17 10.53 10.25 10.56 10.00
Walmart Inc. 8.55 8.40 8.19 8.10 8.72 9.38
Payables Turnover, Sector
General Retailers 6.07 6.60 6.86 7.05 7.78
Payables Turnover, Industry
Consumer Services 6.65 7.06 7.42 7.67 8.28

Based on: 10-K (filing date: 2021-03-10), 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).

1 2021 Calculation
Payables turnover = Cost of sales ÷ Accounts payable
= 66,177 ÷ 12,859 = 5.15

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Target Corp.’s payables turnover ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Working Capital Turnover

Target Corp., working capital turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Jan 30, 2016
Selected Financial Data (US$ in millions)
Current assets 20,756  12,902  12,519  12,564  11,990  14,130 
Less: Current liabilities 20,125  14,487  15,014  13,201  12,708  12,622 
Working capital 631  (1,585) (2,495) (637) (718) 1,508 
 
Sales 92,400  77,130  74,433  71,879  69,495  73,785 
Short-term Activity Ratio
Working capital turnover1 146.43 48.93
Benchmarks
Working Capital Turnover, Competitors2
Amazon.com Inc. 60.82 32.92 34.71 76.87 69.20
Costco Wholesale Corp. 49.82 602.22 381.36
Dollar General Corp. 28.04 43.75 15.56 18.29 20.84 14.18
Home Depot Inc. 24.87 76.81 59.68 36.84 26.34 19.82
Lowe’s Cos. Inc. 24.92 530.50 101.51 2,500.65 856.14
TJX Cos. Inc. 6.51 23.97 13.27 10.67 11.09 13.06
Walmart Inc.
Working Capital Turnover, Sector
General Retailers 141.74
Working Capital Turnover, Industry
Consumer Services 880.78 240.93

Based on: 10-K (filing date: 2021-03-10), 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).

1 2021 Calculation
Working capital turnover = Sales ÷ Working capital
= 92,400 ÷ 631 = 146.43

2 Click competitor name to see calculations.


Average Inventory Processing Period

Target Corp., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Jan 30, 2016
Selected Financial Data
Inventory turnover 6.21 6.10 5.61 5.91 5.88 6.05
Short-term Activity Ratio (no. days)
Average inventory processing period1 59 60 65 62 62 60
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Amazon.com Inc. 37 45 45 52 47
Costco Wholesale Corp. 31 31 33 32 32
Dollar General Corp. 83 89 84 81 78 80
Home Depot Inc. 70 73 72 70 74 74
Lowe’s Cos. Inc. 98 98 95 92 90 90
TJX Cos. Inc. 65 60 60 60 56 61
Walmart Inc. 39 41 42 43 43 45
Average Inventory Processing Period, Sector
General Retailers 46 49 49 50 50
Average Inventory Processing Period, Industry
Consumer Services 40 41 43 44 44

Based on: 10-K (filing date: 2021-03-10), 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).

1 2021 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 6.21 = 59

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Target Corp.’s number of days of inventory outstanding improved from 2019 to 2020 and from 2020 to 2021.

Average Receivable Collection Period

Target Corp., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Jan 30, 2016
Selected Financial Data
Receivables turnover 146.43 154.88 117.77 140.12 190.92 209.62
Short-term Activity Ratio (no. days)
Average receivable collection period1 2 2 3 3 2 2
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Amazon.com Inc. 19 23 21 20 18
Costco Wholesale Corp. 3 4 4 4 4
Dollar General Corp.
Home Depot Inc. 8 7 7 7 8 8
Lowe’s Cos. Inc.
TJX Cos. Inc. 5 3 3 3 3 3
Walmart Inc. 4 4 4 4 4 4
Average Receivable Collection Period, Sector
General Retailers 8 8 7 7 6
Average Receivable Collection Period, Industry
Consumer Services 16 17 15 14 13

Based on: 10-K (filing date: 2021-03-10), 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).

1 2021 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 146.43 = 2

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.

Operating Cycle

Target Corp., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Jan 30, 2016
Selected Financial Data
Average inventory processing period 59 60 65 62 62 60
Average receivable collection period 2 2 3 3 2 2
Short-term Activity Ratio
Operating cycle1 61 62 68 65 64 62
Benchmarks
Operating Cycle, Competitors2
Amazon.com Inc. 56 68 66 72 65
Costco Wholesale Corp. 34 35 37 36 36
Dollar General Corp.
Home Depot Inc. 78 80 79 77 82 82
Lowe’s Cos. Inc.
TJX Cos. Inc. 70 63 63 63 59 64
Walmart Inc. 43 45 46 47 47 49
Operating Cycle, Sector
General Retailers 54 57 56 57 56
Operating Cycle, Industry
Consumer Services 56 58 58 58 57

Based on: 10-K (filing date: 2021-03-10), 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).

1 2021 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 59 + 2 = 61

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Target Corp.’s operating cycle improved from 2019 to 2020 and from 2020 to 2021.

Average Payables Payment Period

Target Corp., average payables payment period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Jan 30, 2016
Selected Financial Data
Payables turnover 5.15 5.53 5.46 5.89 6.74 7.01
Short-term Activity Ratio (no. days)
Average payables payment period1 71 66 67 62 54 52
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Amazon.com Inc. 113 104 100 113 105
Costco Wholesale Corp. 36 32 33 31 27
Dollar General Corp. 57 54 49 45 37 39
Home Depot Inc. 49 39 40 40 41 41
Lowe’s Cos. Inc. 66 57 62 53 57 53
TJX Cos. Inc. 72 33 35 36 35 36
Walmart Inc. 43 43 45 45 42 39
Average Payables Payment Period, Sector
General Retailers 60 55 53 52 47
Average Payables Payment Period, Industry
Consumer Services 55 52 49 48 44

Based on: 10-K (filing date: 2021-03-10), 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).

1 2021 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.15 = 71

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Target Corp.’s number of days of payables outstanding decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Cash Conversion Cycle

Target Corp., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Jan 30, 2016
Selected Financial Data
Average inventory processing period 59 60 65 62 62 60
Average receivable collection period 2 2 3 3 2 2
Average payables payment period 71 66 67 62 54 52
Short-term Activity Ratio
Cash conversion cycle1 -10 -4 1 3 10 10
Benchmarks
Cash Conversion Cycle, Competitors2
Amazon.com Inc. -57 -36 -34 -41 -40
Costco Wholesale Corp. -2 3 4 5 9
Dollar General Corp.
Home Depot Inc. 29 41 39 37 41 41
Lowe’s Cos. Inc.
TJX Cos. Inc. -2 30 28 27 24 28
Walmart Inc. 0 2 1 2 5 10
Cash Conversion Cycle, Sector
General Retailers -6 2 3 5 9
Cash Conversion Cycle, Industry
Consumer Services 1 6 9 10 13

Based on: 10-K (filing date: 2021-03-10), 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).

1 2021 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 59 + 271 = -10

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Target Corp.’s cash conversion cycle improved from 2019 to 2020 and from 2020 to 2021.