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TGT (Target) Altman Z-Score : 3.44 (As of Oct. 31, 2024)


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What is Target Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Good Sign:

Altman Z-score of 3.43 is strong.

Target has a Altman Z-Score of 3.44, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Target's Altman Z-Score or its related term are showing as below:

TGT' s Altman Z-Score Range Over the Past 10 Years
Min: 2.95   Med: 3.43   Max: 4.9
Current: 3.43

During the past 13 years, Target's highest Altman Z-Score was 4.90. The lowest was 2.95. And the median was 3.43.


Target Altman Z-Score Historical Data

The historical data trend for Target's Altman Z-Score 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 Altman Z-Score Chart

Target Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.43 3.98 4.24 3.51 3.35

Target Quarterly Data
Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24
Altman Z-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.32 2.99 3.35 3.49 3.44

Competitive Comparison of Target's Altman Z-Score

For the Discount Stores subindustry, Target's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution in the Retail - Defensive Industry

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

* The bar in red indicates where Target's Altman Z-Score falls into.



Target Altman Z-Score Calculation

Altman 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.

Target's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*-0.0369+1.4*0.1434+3.3*0.111+0.6*1.6629+1.0*1.9162
=3.44

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jul. 2024:
Total Assets was $55,995 Mil.
Total Current Assets was $17,918 Mil.
Total Current Liabilities was $19,984 Mil.
Retained Earnings was $8,030 Mil.
Pre-Tax Income was 1545 + 1219 + 1786 + 1235 = $5,785 Mil.
Interest Expense was -110 + -106 + -107 + -107 = $-430 Mil.
Revenue was 25452 + 24531 + 31919 + 25398 = $107,300 Mil.
Market Cap (Today) was $69,120 Mil.
Total Liabilities was $41,566 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(17918 - 19984)/55995
=-0.0369

X2=Retained Earnings/Total Assets
=8030/55995
=0.1434

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(5785 - -430)/55995
=0.111

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=69119.630/41566
=1.6629

X5=Revenue/Total Assets
=107300/55995
=1.9162

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Target has a Altman Z-Score of 3.44 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Target  (NYSE:TGT) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Target Altman Z-Score Related Terms

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


Target Business Description

Address
1000 Nicollet Mall, Minneapolis, MN, USA, 55403
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.
Executives
Matthew A Liegel officer: Chief Accounting Officer 1000 NICOLLET MALL, MINNEAPOLIS MN 55403
Brian C Cornell director, officer: Executive Officer 1000 NICOLLET MALL, MINNEAPOLIS MN 55403
Don H Liu officer: Executive Officer 1000 NICOLLET MALL, TPS-3155, MINNEAPOLIS MN 55403
Christina Hennington officer: Executive Officer 1000 NICOLLET MALL, MINNEAPOLIS MN 55403
Melissa K Kremer officer: Executive Officer 1000 NICOLLET MALL, MINNEAPOLIS MN 55403
Cara A Sylvester officer: Executive Officer 1000 NICOLLET MALL, MINNEAPOLIS MN 55403
Matthew L Zabel officer: Executive Officer 1000 NICOLLET MALL, TPS-3155, MINNEAPOLIS MN 55403
Michael J Fiddelke officer: Executive Officer 1000 NICOLLET MALL, MINNEAPOLIS MN 55403
John J Mulligan officer: Executive Officer 1000 NICOLLET MALL, TPS-2672, MINNEAPOLIS MN 55403
Grace Puma Whiteford director C/O WILLIAM SONOMA, INC., 3250 VAN NESS AVENUE, SAN FRANCISCO CA 94109
Jill Sando officer: Executive Officer 1000 NICOLLET MALL, MINNEAPOLIS MN 55403
Katie M Boylan officer: Executive Officer 1000 NICOLLET MALL, MINNEAPOLIS MN 55403
Robert M Harrison officer: Chief Accounting Officer 1000 NICOLLET MALL, MINNEAPOLIS MN 55403
Richard H. Gomez officer: Executive Officer 1000 NICOLLET MALL, MINNEAPOLIS MN 55403
Gail Boudreaux director GENZYME CORP., 500 KENDALL STREET, CAMBRIDGE MA 02142