TargetTGT -1.15%77 Current Ratio is 0.93 as of Apr. 2026, which is 1% below its 10-year median of 0.94. GuruFocus rates TGT with a GF Score™ of 77/100 and a GF Value™ of $129.29 (Fairly Valued). The stock has 9 warning signs investors should review. Among 312 Retail - Defensive companies, Target ranks worse than 74.36% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Target's current ratio for the quarter that ended in Apr. 2026 was 0.93.
Target has a current ratio of 0.93. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Target has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for Target's Current Ratio or its related term are showing as below:
TGT'
s Current Ratio Range Over the Past 10 Years
Min: 0.82 Med: 0.94 Max: 1.11
Current: 0.93
During the past 13 years, Target's highest Current Ratio was 1.11. The lowest was 0.82. And the median was 0.94.
TGT's Current Ratio is ranked worse than 74.36% of 312
companies
in the Retail - Defensive industry
Industry Median: 1.31
vs TGT: 0.93
Target (NYSE:TGT) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Target Current Ratio Related Terms
Target Current Ratio Historical Data
* Premium members only.
The historical data trend for Target's Current Ratio 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.
For the Discount Stores subindustry, Target's Current Ratio, along with its competitors' market caps and Current Ratio 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 Current Ratio vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Target's Current Ratio distribution charts can be found below:
* The bar in red indicates where Target's Current Ratio falls into.
* 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.
Target (TGT) has a Current Ratio of 0.93 as of Apr. 2026. This is near median its historical median of 0.94. Over the past decade, Target's Current Ratio has ranged from 0.82 to 1.11. According to the industry distribution chart, Target ranks #232 out of 312 companies in the Retail - Defensive industry, placing it in the top 74.4%.
Is Target's Current Ratio too high?
Target's current Current Ratio of 0.93 is near median its 10-year median of 0.94. Over the past 10 years, this metric has ranged from a low of 0.82 to a high of 1.11. The Retail - Defensive industry median Current Ratio is 1.31. Target's value of 0.93 is 29% below this industry median. Based on the distribution chart, Target ranks #232 out of 312 companies in the Retail - Defensive industry, which is below the industry midpoint. Overall, Target has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Target's Current Ratio compare to DG and DLTR?
According to the Retail - Defensive industry distribution chart, Target ranks #232 out of 312 companies for Current Ratio. This places Target in the lower half of its industry. The industry median Current Ratio is 1.31. Target's value of 0.93 is 29% below this benchmark. Historically, Target's own Current Ratio has ranged from 0.82 to 1.11 over the past decade. While the company's 10-year median is 0.94 vs. the industry median of 1.31, Target has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a Retail - Defensive company?
The median Current Ratio among Retail - Defensive companies is 1.31, based on 312 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Target's current Current Ratio of 0.93 is 29% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Retail - Defensive industry, the median Current Ratio is 1.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Target's current Current Ratio is 0.93, which is near median its own 10-year median of 0.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Target stock overvalued right now?
Based on GuruFocus' analysis, Target (TGT) is currently considered Fairly Valued. The stock's GF Value™ is $129.29, compared to a current price of $139.57 — trading 8% above its estimated fair value. The current Current Ratio is 0.93, which is near median its 10-year median of 0.94 and 29% below the Retail - Defensive industry median of 1.31. Target's overall GF Score™ is 77/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Target (TGT), the current Current Ratio is 0.93 as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Target (TGT) Overvalued in 2026?
Based on GuruFocus' analysis, Target stock appears to be overvalued.
The current stock price of $139.57 is trading 8% above its estimated GF Value™ of $129.29.
GuruFocus considers Target to be Fairly Valued.
Key valuation signals for TGT:
Current Ratio: 0.93 (near median its 10-year median of 0.94)
GF Value™: $129.29 vs. price of $139.57 (8% above fair value)
Industry Position: 29% below the Retail - Defensive median (#232 of 312)
No single metric tells the full story. See the TGT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Target's start dates back to 1962, but now it is one of the largest discount retailers in the United States (where it derives all of its sales), operating just under 2,000 stores and generating over $104 billion in fiscal 2025 sales. The company offers a broad assortment of merchandise across categories including apparel and accessories (16% of fiscal 2025 revenue), beauty and household essentials (30%), food and beverage (24%), hardlines (15%), as well as home furnishings (15%). Target's model is anchored in its physical store base, which fulfills more than 97% of sales. Around 30% of sales are derived from its own private-label brands.
77GF Score
Get the complete analysis for TGT
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