Target (NYSE:TGT) Interest Coverage

: 9.03 (As of Apr. 2023)

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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 Apr. 2023 was $1,328 Mil. Target's Interest Expense for the three months ended in Apr. 2023 was $-147 Mil. Target's interest coverage for the quarter that ended in Apr. 2023 was 9.03. 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: 4.56 Med: 7.37 Max: 21.25
Current: 7.47

TGT's Interest Coverage is ranked worse than
60.4% of 250 companies
in the Retail - Defensive industry
Industry Median: 11.74 vs TGT: 7.47

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.

* Premium members only.

Target Annual Data

Trend

Jan14

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Interest Coverage

8.92

9.77

6.69

21.25

8.05

Target Quarterly Data
	Jul18	Oct18	Jan19	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23
Interest Coverage																12.02	2.87	8.18	8.98	9.03

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.

Annual Data Quarterly Data

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 in comparison to its industry or sector. The grey bar indicates the Interest Coverage's extreme value range as defined by GuruFocus.

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.

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. 2023 is calculated as

Here, for the fiscal year that ended in Jan. 2023, Target's Interest Expense was $-478 Mil. Its Operating Income was $3,848 Mil. And its Long-Term Debt & Capital Lease Obligation was $18,647 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jan. 2023 )	/	Interest Expense (A: Jan. 2023 )
	=	-1	*	3848	/	-478
	=	8.05

Target's Interest Coverage for the quarter that ended in Apr. 2023 is calculated as

Here, for the three months ended in Apr. 2023, Target's Interest Expense was $-147 Mil. Its Operating Income was $1,328 Mil. And its Long-Term Debt & Capital Lease Obligation was $18,631 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Apr. 2023 )	/	Interest Expense (Q: Apr. 2023 )
	=	-1	*	1328	/	-147
	=	9.03

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 (NYSE:TGT) 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:Mexico DYH:Germany TGT:Chile TGTB34:Brazil TGTC:Austria TGT:Argentina

Address

1000 Nicollet Mall, Minneapolis, MN, USA, 55403

Website

https://investors.target.com

With 1,926 stores (as of the end of fiscal 2021), Target is a leading American general merchandise retailer, offering a variety of products across several categories, including beauty and household essentials (26% of fiscal 2021 sales), food and beverage (19%), home furnishings and décor (19%), hardlines (18%), and apparel and accessories (17%). Most of Target's stores are large, averaging more than 125,000 square feet. The company has a significant e-commerce presence, deriving around 19% of sales from digital channels (up from about 9% in fiscal 2019, before the pandemic). In addition to its namesake stores, Target owns Shipt, an online same-day delivery platform. After it exited Canada in 2015, virtually all of Target's revenue is generated from the United States.

Executives

Grace Puma Whiteford	director	C/O WILLIAM SONOMA, INC., 3250 VAN NESS AVENUE, SAN FRANCISCO CA 94109
Matthew A Liegel	officer: Chief Accounting Officer	1000 NICOLLET MALL, MINNEAPOLIS MN 55403
Gail Boudreaux	director	GENZYME CORP., 500 KENDALL STREET, CAMBRIDGE MA 02142
David P Abney	director	55 GLENLAKE PARWAY, NE, ATLANTA GA 30328
Katie M Boylan	officer: Executive Officer	1000 NICOLLET MALL, MINNEAPOLIS MN 55403
Cara A Sylvester	officer: Executive Officer	1000 NICOLLET MALL, MINNEAPOLIS MN 55403
Christine A Leahy	director
Mark Schindele	officer: Executive Officer	1000 NICOLLET MALL, MINNEAPOLIS MN 55403
Christina Hennington	officer: Executive Officer	1000 NICOLLET MALL, MINNEAPOLIS MN 55403
Jill Sando	officer: Executive Officer	1000 NICOLLET MALL, MINNEAPOLIS MN 55403
Michael J Fiddelke	officer: Executive Officer	1000 NICOLLET MALL, MINNEAPOLIS MN 55403
Melissa K Kremer	officer: Executive Officer	1000 NICOLLET MALL, MINNEAPOLIS MN 55403
George S Barrett	director	CARDINAL HEALTH, INC., 7000 CARDINAL PLACE, DUBLIN OH 43017
Dmitri L Stockton	director	777 LONG RIDGE ROAD, SYNCHRONY FINANCIAL C/O CORP. SECRETARY, STAMFORD CT 06902
Minsok Pak	officer: Executive Officer	1000 NICOLLET MALL, MINNEAPOLIS MN 55403