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 Jul. 2024 was $1,635 Mil. Target's Interest Expense for the
three
months ended in Jul. 2024 was $-110 Mil.
Target's interest coverage for the quarter that ended in Jul. 2024 was 14.86.
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: 14.22
TGT's Interest Coverage is ranked better than 56.5% of 246
companies
in the Retail - Defensive industry
Industry Median: 9.145
vs TGT: 14.22
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.
Competitive Comparison of Target's Interest Coverage
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's Interest Coverage Distribution in the Retail - Defensive Industry
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:
* 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.
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 serves as the nation's seventh-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 leading US retailer.Today, Target operates over 1,950 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.
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