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Target Financial Strength

: 6 (As of Jul. 2022)
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Target has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Target's Interest Coverage for the quarter that ended in Jul. 2022 was 2.87. Target's debt to revenue ratio for the quarter that ended in Jul. 2022 was 0.17. As of today, Target's Altman Z-Score is 3.90.


Competitive Comparison

For the Discount Stores subindustry, Target's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution

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

* The bar in red indicates where Target's Financial Strength falls into.



Target Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

Target's Interest Expense for the months ended in Jul. 2022 was $-112 Mil. Its Operating Income for the months ended in Jul. 2022 was $321 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jul. 2022 was $15,996 Mil.

Target's Interest Coverage for the quarter that ended in Jul. 2022 is

Interest Coverage=-1*Operating Income (Q: Jul. 2022 )/Interest Expense (Q: Jul. 2022 )
=-1*321/-112
=2.87

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Target's Debt to Revenue Ratio for the quarter that ended in Jul. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jul. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1649 + 15996) / 104148
=0.17

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Target has a Z-score of 3.90, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.9 is strong.

* 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  (NYSE:TGT) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Target has the Financial Strength Rank of 6.


Target Financial Strength Related Terms

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


Target Business Description

Target logo
Address
1000 Nicollet Mall, Minneapolis, MN, USA, 55403
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 the channel (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
Liegel Matthew A officer: Chief Accounting Officer 1000 NICOLLET MALL MINNEAPOLIS MN 55403
Boudreaux Gail director GENZYME CORP. 500 KENDALL STREET CAMBRIDGE MA 02142
Abney David P director 55 GLENLAKE PARWAY, NE ATLANTA GA 30328
Boylan Katie M officer: Executive Officer 1000 NICOLLET MALL MINNEAPOLIS MN 55403
Sylvester Cara A officer: Executive Officer 1000 NICOLLET MALL MINNEAPOLIS MN 55403
Leahy Christine A director
Schindele Mark officer: Executive Officer 1000 NICOLLET MALL MINNEAPOLIS MN 55403
Hennington Christina officer: Executive Officer 1000 NICOLLET MALL MINNEAPOLIS MN 55403
Sando Jill officer: Executive Officer 1000 NICOLLET MALL MINNEAPOLIS MN 55403
Fiddelke Michael J officer: Executive Officer 1000 NICOLLET MALL MINNEAPOLIS MN 55403
Kremer Melissa K officer: Executive Officer 1000 NICOLLET MALL MINNEAPOLIS MN 55403
Barrett George S director CARDINAL HEALTH, INC. 7000 CARDINAL PLACE DUBLIN OH 43017
Stockton Dmitri L director 777 LONG RIDGE ROAD SYNCHRONY FINANCIAL C/O CORP. SECRETARY STAMFORD CT 06902
Pak Minsok officer: Executive Officer 1000 NICOLLET MALL MINNEAPOLIS MN 55403
Gomez Richard H. officer: Executive Officer 1000 NICOLLET MALL MINNEAPOLIS MN 55403

Target Headlines

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