Target (Target) Interest Coverage

: 17.43 (As of Jan. 2024)

View and export this data going back to 1983. Start your Free Trial

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Target's Operating Income for the three months ended in Jan. 2024 was $1,865 Mil. Target's Interest Expense for the three months ended in Jan. 2024 was $-107 Mil. Target's interest coverage for the quarter that ended in Jan. 2024 was 17.43. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Target's Interest Coverage or its related term are showing as below:

TGT' s Interest Coverage Range Over the Past 10 Years
Min: 4.91 Med: 8.07 Max: 21.25
Current: 11.37

TGT's Interest Coverage is ranked better than
54.72% of 254 companies
in the Retail - Defensive industry
Industry Median: 9.045 vs TGT: 11.37

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Target Interest Coverage Historical Data

The historical data trend for Target's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Target Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Interest Coverage

9.77

6.69

21.25

8.05

11.37

Target Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Interest Coverage																8.98	9.03	8.49	12.31	17.43

Competitive Comparison

For the Discount Stores subindustry, Target's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Target Interest Coverage Distribution

For the Retail - Defensive industry and Consumer Defensive sector, Target's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Target's Interest Coverage falls into.

Target Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Target's Interest Coverage for the fiscal year that ended in Jan. 2024 is calculated as

Here, for the fiscal year that ended in Jan. 2024, Target's Interest Expense was $-502 Mil. Its Operating Income was $5,707 Mil. And its Long-Term Debt & Capital Lease Obligation was $18,201 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jan. 2024 )	/	Interest Expense (A: Jan. 2024 )
	=	-1	*	5707	/	-502
	=	11.37

Target's Interest Coverage for the quarter that ended in Jan. 2024 is calculated as

Here, for the three months ended in Jan. 2024, Target's Interest Expense was $-107 Mil. Its Operating Income was $1,865 Mil. And its Long-Term Debt & Capital Lease Obligation was $18,201 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Jan. 2024 )	/	Interest Expense (Q: Jan. 2024 )
	=	-1	*	1865	/	-107
	=	17.43

The higher the ratio, the stronger the company's Financial Strength is.

Target (NYSE:TGT) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Target Interest Coverage Related Terms

Thank you for viewing the detailed overview of Target's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Target (Target) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Target Corp (NYSE:TGT) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

TGT:Peru TGT:Mexico 1TGT:Italy DYH:Germany DYH:Germany DYH:Germany DYH:Germany TGT:Chile TGTB34:Brazil TGTC:Austria TGT:Argentina

Address

1000 Nicollet Mall, Minneapolis, MN, USA, 55403

Website

https://corporate.target.com

Target serves as the nation's sixth-largest retailer, with its strategy predicated on delivering a gratifying in-store shopping experience and a wide product assortment of trendy apparel, home goods, and household essentials at competitive prices. Target's upscale and stylish image began to carry national merit in the 1990s—a decade in which the brand saw its top line grow threefold to almost $30 billion—and has since cemented itself as a top U.S. retailer.Today, Target operates over 1,900 stores in the United States, generates over $100 billion in sales, and fulfills over 2 billion customer orders annually. The firm's vast physical footprint is typically concentrated in urban and suburban markets as the firm seeks to attract a more affluent consumer base.

Executives

Matthew L Zabel	officer: Executive Officer	1000 NICOLLET MALL, TPS-3155, MINNEAPOLIS MN 55403
Christina Hennington	officer: Executive Officer	1000 NICOLLET MALL, MINNEAPOLIS MN 55403
Don H Liu	officer: Executive Officer	1000 NICOLLET MALL, TPS-3155, MINNEAPOLIS MN 55403
Brian C Cornell	director, officer: Executive Officer	1000 NICOLLET MALL, MINNEAPOLIS MN 55403
Matthew A Liegel	officer: Chief Accounting Officer	1000 NICOLLET MALL, MINNEAPOLIS MN 55403
John J Mulligan	officer: Executive Officer	1000 NICOLLET MALL, TPS-2672, MINNEAPOLIS MN 55403
Grace Puma Whiteford	director	C/O WILLIAM SONOMA, INC., 3250 VAN NESS AVENUE, SAN FRANCISCO CA 94109
Cara A Sylvester	officer: Executive Officer	1000 NICOLLET MALL, MINNEAPOLIS MN 55403
Jill Sando	officer: Executive Officer	1000 NICOLLET MALL, MINNEAPOLIS MN 55403
Melissa K Kremer	officer: Executive Officer	1000 NICOLLET MALL, MINNEAPOLIS MN 55403
Michael J Fiddelke	officer: Executive Officer	1000 NICOLLET MALL, MINNEAPOLIS MN 55403
Katie M Boylan	officer: Executive Officer	1000 NICOLLET MALL, MINNEAPOLIS MN 55403
Robert M Harrison	officer: Chief Accounting Officer	1000 NICOLLET MALL, MINNEAPOLIS MN 55403
Richard H. Gomez	officer: Executive Officer	1000 NICOLLET MALL, MINNEAPOLIS MN 55403
Gail Boudreaux	director	GENZYME CORP., 500 KENDALL STREET, CAMBRIDGE MA 02142