Target Debt
| TGT Stock | USD 130.53 5.52 4.42% |
Target holds a debt-to-equity ratio of 1.767. At this time, Target's Debt To Assets are comparatively stable compared to the past year. Debt Ratio is likely to gain to 0.31 in 2024, whereas Short and Long Term Debt Total is likely to drop slightly above 10.9 B in 2024. . Target's financial risk is the risk to Target stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
Target's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Target's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the Company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps Target Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect Target's stakeholders.
Target Quarterly Net Debt |
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For most companies, including Target, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Target, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Target's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book 3.9623 | Book Value 29.094 | Operating Margin 0.0664 | Profit Margin 0.0418 | Return On Assets 0.0723 |
Given that Target's debt-to-equity ratio measures a Company's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which Target is acquiring new debt as a mechanism of leveraging its assets. A high debt-to-equity ratio is generally associated with increased risk, implying that it has been aggressive in financing its growth with debt. Another way to look at debt-to-equity ratios is to compare the overall debt load of Target to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Target is said to be less leveraged. If creditors hold a majority of Target's assets, the Company is said to be highly leveraged.
Total Current Liabilities is likely to drop to about 9.9 B in 2024. Liabilities And Stockholders Equity is likely to drop to about 32 B in 2024Target |
Target Bond Ratings
Target financial ratings play a critical role in determining how much Target have to pay to access credit markets, i.e., the amount of interest on their issued debt. The threshold between investment-grade and speculative-grade ratings has important market implications for Target's borrowing costs.| Piotroski F Score | 5 | Healthy | View |
| Beneish M Score | (3.89) | Unlikely Manipulator | View |
Target Debt to Cash Allocation
Target has 19.65 B in debt with debt to equity (D/E) ratio of 1.77, which is OK given its current industry classification. Target has a current ratio of 0.84, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for Target to invest in growth at high rates of return.Target Total Assets Over Time
Target Assets Financed by Debt
The debt-to-assets ratio shows the degree to which Target uses debt to finance its assets. It includes both long-term and short-term borrowings maturing within one year. It also includes both tangible and intangible assets, such as goodwill.Target Debt Ratio | 31.0 |
Target Corporate Bonds Issued
Target Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning Target Use of Financial Leverage
Target's financial leverage ratio measures its total debt position, including all of its outstanding liabilities, and compares it to Target's current equity. If creditors own a majority of Target's assets, the company is considered highly leveraged. Understanding the composition and structure of Target's outstanding bonds gives an idea of how risky it is and if it is worth investing in.
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 19.6 B | 10.9 B | |
| Net Debt | 15.8 B | 9.4 B | |
| Short Term Debt | 1.4 B | 815.3 M | |
| Long Term Debt | 14.9 B | 13.5 B | |
| Long Term Debt Total | 18.4 B | 13.7 B | |
| Short and Long Term Debt | 1.1 B | 635.5 M | |
| Net Debt To EBITDA | 1.84 | 1.59 | |
| Debt To Equity | 1.05 | 0.91 | |
| Interest Debt Per Share | 31.74 | 21.48 | |
| Debt To Assets | 0.26 | 0.31 | |
| Long Term Debt To Capitalization | 0.49 | 0.47 | |
| Total Debt To Capitalization | 0.51 | 0.48 | |
| Debt Equity Ratio | 1.05 | 0.91 | |
| Debt Ratio | 0.26 | 0.31 | |
| Cash Flow To Debt Ratio | 0.61 | 0.35 |
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Additional Tools for Target Stock Analysis
When running Target's price analysis, check to measure Target's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Target is operating at the current time. Most of Target's value examination focuses on studying past and present price action to predict the probability of Target's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Target's price. Additionally, you may evaluate how the addition of Target to your portfolios can decrease your overall portfolio volatility.
What is Financial Leverage?
Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing. In most cases, the debt provider will limit how much risk it is ready to take and indicate a limit on the extent of the leverage it will allow. In the case of asset-backed lending, the financial provider uses the assets as collateral until the borrower repays the loan. In the case of a cash flow loan, the general creditworthiness of the company is used to back the loan. The concept of leverage is common in the business world. It is mostly used to boost the returns on equity capital of a company, especially when the business is unable to increase its operating efficiency and returns on total investment. Because earnings on borrowing are higher than the interest payable on debt, the company's total earnings will increase, ultimately boosting stockholders' profits.Leverage and Capital Costs
The debt to equity ratio plays a role in the working average cost of capital (WACC). The overall interest on debt represents the break-even point that must be obtained to profitability in a given venture. Thus, WACC is essentially the average interest an organization owes on the capital it has borrowed for leverage. Let's say equity represents 60% of borrowed capital, and debt is 40%. This results in a financial leverage calculation of 40/60, or 0.6667. The organization owes 10% on all equity and 5% on all debt. That means that the weighted average cost of capital is (.4)(5) + (.6)(10) - or 8%. For every $10,000 borrowed, this organization will owe $800 in interest. Profit must be higher than 8% on the project to offset the cost of interest and justify this leverage.Benefits of Financial Leverage
Leverage provides the following benefits for companies:- Leverage is an essential tool a company's management can use to make the best financing and investment decisions.
- It provides a variety of financing sources by which the firm can achieve its target earnings.
- Leverage is also an essential technique in investing as it helps companies set a threshold for the expansion of business operations. For example, it can be used to recommend restrictions on business expansion once the projected return on additional investment is lower than the cost of debt.