Aureus
FRed Flag

Target Corporation(TGT)

F

Financial data as of Jan 31, 2025Improving

FCF Margin4.2%Free Cash Flow / Revenue
Cash Conversion180.1%Operating CF / Net Income
Free Cash Flow$4.5B
Revenue$106.6B
Net Cash-$15.1BNet debt position
Debt / FCF4.4xElevated debt burden
Current Ratio0.94Tight short-term liquidity
YoY FCF Growth+77.4%4 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseF
→
-1Current ratio below 1.0 (0.94)
→
+1Strong YoY FCF growth (77.4% YoY)
→
-0.5Highly volatile FCF (consistency: 1.62)
→
FinalF

Analysis Summary

Strengths

  • Excellent cash conversion (180%)
  • Strong YoY FCF growth (+77.4%)
  • FCF trend is improving

Concerns

  • Low FCF margin (4.2%)
  • Net debt position ($15.1B)
  • Current ratio below 1.0 — tight short-term liquidity
  • Highly volatile quarterly FCF

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin4.2%
Net Margin3.8%
Operating CF Margin6.9%
CapEx Ratio2.7%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$15.1BNet debt position
Debt / FCF4.4xElevated debt burden
Current Ratio0.94Tight liquidity
Debt / Equity1.36Moderate leverage

Quarterly FCF Trend

+77.4% YoYImproving (+77.4%)

Free cash flow per quarter

Detailed Metrics

Company NameTarget Corporation
Free Cash Flow$4.5B
Revenue$106.6B
Net Income$4.1B
Operating Cash Flow$7.4B
Capital Expenditure$2.9B
FCF Margin4.2%
Cash Conversion Rate180.1%
Net Margin3.8%
Total Debt$19.9B
Total Cash$4.8B
Net Cash-$15.1B
Current Ratio0.94
Debt / Equity1.36
Debt / FCF4.4x
YoY FCF Growth+77.4%
Positive Quarters4 of 5
Trend DirectionImproving
Report DateJan 31, 2025
GradeF
Data SourceYahoo Finance