Cash conversion efficiency remains inconsistent, evidenced by an OCF/NI ratio that dropped to a low of 0.27 in 2025Q1, largely driven by volatile working capital requirements.
| Metric | TTM | Jan'26 | Feb'25 | Feb'24 | Jan'23 | Jan'22 | Jan'21 | Feb'20 | Feb'19 | Feb'18 | Jan'17 | Jan'16 | Jan'15 | Feb'14 | Feb'13 | Jan'12 | Jan'11 | Jan'10 | Jan'09 | Feb'08 | Feb'07 | Jan'06 | Jan'05 | Jan'04 | Feb'03 | Feb'02 | Feb'01 | Jan'00 | Jan'99 | Jan'98 | Feb'97 |
|---|
| Cash from Operations | 7B | 6.56B | 7.37B | 8.62B | 4.02B | 8.63B | 10.53B | 7.12B | 5.97B | 6.92B | 5.44B | 5.84B | 4.44B | 6.52B | 5.33B | 5.43B | 5.27B | 5.88B | 4.43B | 4.13B | 4.86B | 4.45B | 3.19B | 3.16B | 1.59B | 1.99B | 1.91B | 2.25B | 1.86B | 1.79B | 1.46B |
| Operating CF Margin % | - | 6.26% | 6.91% | 8.03% | 3.68% | 8.14% | 11.25% | 9.11% | 7.93% | 9.52% | 7.74% | 7.92% | 6.11% | 9.15% | 7.26% | 7.78% | 7.82% | 9% | 6.82% | 6.51% | 8.17% | 8.46% | 6.82% | 7.52% | 4.25% | 5% | 5.16% | 6.68% | 6.07% | 6.47% | 5.75% |
| Operating CF Growth % | 199.5% | -10.93% | -14.55% | 114.56% | -53.41% | -18.05% | 47.89% | 19.15% | -13.72% | 27.35% | -6.98% | 31.65% | -31.92% | 22.44% | -2.01% | 3.09% | -10.37% | 32.75% | 7.39% | -15.16% | 9.23% | 39.31% | 1.11% | 98.74% | -20.18% | 4.57% | -15.41% | 20.95% | 3.73% | 23.11% | 25.58% |
| Net Income | 3.61B | 3.71B | 4.09B | 4.14B | 2.78B | 6.95B | 4.37B | 3.28B | 2.93B | 2.93B | 2.67B | 3.32B | 2.45B | 1.97B | 3B | 2.93B | 2.92B | 2.49B | 2.21B | 2.85B | 2.79B | 2.41B | 1.89B | 1.84B | 1.65B | 1.37B | 1.26B | 1.19B | 962M | 802M | 474M |
| Depreciation & Amortization | 3.16B | 3.13B | 2.98B | 2.8B | 2.7B | 2.64B | 2.48B | 2.6B | 2.47B | 2.44B | 2.3B | 2.21B | 2.13B | 2.22B | 2.14B | 2.13B | 2.08B | 2.02B | 1.83B | 1.66B | 1.5B | 1.41B | 1.26B | 1.32B | 1.21B | 1.08B | 940M | 854M | 780M | 693M | 650M |
| Stock-Based Compensation | 266M | 281M | 304M | 251M | 220M | 228M | 200M | 147M | 132M | 112M | 113M | 115M | 71M | 110M | 105M | 90M | 109M | 103M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 82M | -55M | -180M | 298M | 582M | 522M | -184M | 178M | 322M | -192M | 41M | -322M | 7M | -254M | -14M | 371M | 445M | 364M | 91M | -70M | -201M | -122M | 233M | 249M | 248M | 49M | 1M | 75M | -11M | -63M | -107M |
| Other Non-Cash Items | -138M | -100M | 26M | 94M | 172M | -268M | 598M | 45M | 98M | 389M | 529M | 72M | -367M | 177M | 59M | 176M | 383M | 1.39B | 1.54B | 606M | 444M | 17M | 116M | 19M | 30M | 211M | 237M | 23M | -41M | -25M | 53M |
| Working Capital Changes | 183M | -403M | 145M | 1.04B | -2.44B | -1.45B | 3.06B | 862M | 17M | 1.24B | -214M | 445M | 150M | 2.29B | 34M | -263M | -670M | -482M | -1.28B | -868M | 283M | 160M | -182M | -866M | -2.24B | -721M | -537M | 156M | 172M | 388M | 388M |
| Change in Receivables | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2.29B | 794M | 0 | 0 | 0 | 2.86B | -217M | -187M | -78M | -57M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 731M | 436M | -854M | 1.61B | 403M | -3.25B | -1.66B | 505M | -900M | -348M | 293M | -316M | -512M | -885M | 15M | -322M | -417M | -474M | 77M | -525M | -431M | -454M | -853M | -583M | -311M | -201M | -450M | -323M | -198M | -220M | -13M |
| Change in Payables | 286M | -501M | 1.01B | -1.22B | -2.24B | 2.63B | 2.92B | 140M | 1.13B | 1.31B | -543M | 534M | 0 | 625M | 199M | 232M | 115M | 174M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -3.9B | -3.65B | -2.86B | -4.76B | -5.5B | -3.15B | -2.59B | -2.94B | -3.42B | -3.08B | -1.47B | 508M | -1.93B | -271M | -2.85B | -4.18B | -1.74B | -1.7B | -4.37B | -6.2B | -4.69B | -4.15B | 1.18B | -2.92B | -3.19B | -3.31B | -2.48B | -1.81B | -1.66B | -1.23B | -1.2B |
| Capital Expenditures | -3.88B | 0 | -2.89B | -4.81B | -5.53B | -3.54B | -2.65B | -3.03B | -3.52B | -2.53B | -1.55B | -1.44B | -1.79B | -3.45B | -3.28B | -4.37B | -2.13B | -1.73B | -3.55B | -4.37B | -3.93B | -3.39B | -3.07B | -3B | -3.22B | -3.16B | -2.53B | -1.92B | -1.76B | -1.35B | -1.3B |
| CapEx % of Revenue | 3.68% | 3.56% | 2.71% | 4.47% | 5.07% | 3.34% | 2.83% | 3.88% | 4.67% | 3.48% | 2.2% | 1.95% | 2.46% | 4.84% | 4.47% | 6.25% | 3.16% | 2.65% | 5.46% | 6.89% | 6.6% | 6.44% | 6.55% | 7.15% | 8.61% | 7.94% | 6.85% | 5.69% | 5.73% | 4.88% | 5.13% |
| Acquisitions | 0 | 0 | 0 | 0 | 8M | 356M | 42M | 63M | 85M | -518M | 46M | 1.88B | -20M | -157M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -18M | -3.65B | 31M | 46M | 24M | 34M | 58M | 83M | 0 | 31M | 0 | 71M | -120M | 3.34B | 422M | 296M | 385M | 23M | -784M | -1.64B | -621M | -761M | 4.25B | 85M | 32M | 27M | 53M | 111M | 102M | 123M | 103M |
| Cash from Financing | -2.46B | -2.19B | -3.55B | -2.29B | -2.2B | -8.07B | -2B | -3.15B | -3.64B | -3.72B | -5.5B | -4.52B | -998M | -6.36B | -2.49B | -2.14B | -4.01B | -2.84B | -1.64B | 3.71B | -1B | -899M | -2.84B | -283M | 1.86B | 1.46B | 706M | -480M | -163M | -554M | -234M |
| Debt Issued (Net) | -148M | 341M | -398M | -147M | 2.46B | 825M | 65M | -330M | -281M | -1.45B | -664M | -85M | -166M | -4.35B | -88M | 369M | -1.25B | -1.97B | 1.6B | 6.79B | 101M | 386M | -1.48B | -79M | 2.02B | 1.64B | 1.44B | 249M | -48M | -420M | -90M |
| Equity Issued (Net) | -497M | -408M | -1.01B | -127M | -2.83B | -7.36B | -745M | -1.56B | -2.12B | -1.05B | -3.71B | -3.48B | -26M | -1.46B | -1.51B | -1.75B | -2.45B | -423M | -2.81B | -2.48B | -720M | -1.02B | -1.14B | -12M | 24M | -20M | -585M | -581M | 0 | 0 | 0 |
| Dividends Paid | -2.06B | -2.05B | -2.05B | -2.01B | -1.84B | -1.55B | -1.34B | -1.33B | -1.33B | -1.34B | -1.35B | -1.36B | -1.21B | -1.01B | -869M | -750M | -609M | -496M | -465M | -442M | -380M | -318M | -272M | -237M | -218M | -203M | -190M | -195M | -178M | -165M | -155M |
| Share Repurchases | -497M | -408M | -1.01B | -127M | -2.65B | -7.19B | -745M | -1.56B | -2.12B | -1.05B | -3.71B | -3.48B | -26M | -1.46B | -1.88B | -1.84B | -2.45B | -423M | -2.81B | -2.48B | -901M | -1.2B | -1.29B | -48M | -3M | -20M | -585M | -581M | 0 | 0 | 0 |
| Other Financing | 243M | -67M | -99M | 0 | 4M | 8M | 23M | 73M | 96M | 108M | 221M | 414M | 399M | 456M | -16M | -6M | 294M | 47M | 35M | -165M | -5M | 58M | 56M | -10M | -20M | 44M | 42M | 18M | 38M | 31M | 11M |
| Net Change in Cash | 647M | 726M | 957M | 1.58B | -3.68B | -2.6B | 5.93B | 1.02B | -1.09B | 131M | -1.53B | 1.84B | 1.51B | -89M | -10M | -918M | -488M | 1.34B | -1.59B | 1.64B | -835M | -597M | 1.54B | -42M | 259M | 143M | 136M | -35M | -163M | -554M | -234M |
| Free Cash Flow | 4.16B | 2.83B | 4.48B | 3.81B | -1.51B | 5.08B | 7.88B | 4.09B | 2.46B | 4.39B | 3.89B | 4.41B | 2.65B | 3.07B | 2.05B | 1.07B | 3.14B | 4.15B | 883M | -244M | 934M | 1.06B | 127M | 156M | -1.63B | -1.17B | -623M | 334M | 105M | 441M | 157M |
| FCF Margin % | 3.95% | 2.71% | 4.2% | 3.55% | -1.38% | 4.79% | 8.42% | 5.24% | 3.26% | 6.04% | 5.53% | 5.97% | 3.65% | 4.3% | 2.79% | 1.53% | 4.66% | 6.35% | 1.36% | -0.39% | 1.57% | 2.02% | 0.27% | 0.37% | -4.36% | -2.94% | -1.69% | 0.99% | 0.34% | 1.59% | 0.62% |
| FCF Growth % | 17.74% | -36.66% | 17.33% | 352.65% | -129.72% | -35.49% | 92.57% | 66.46% | -44.03% | 12.88% | -11.73% | 66.08% | -13.5% | 49.76% | 92.12% | -66.07% | -24.33% | 370.22% | 461.89% | -126.12% | -12.14% | 737.01% | -18.59% | 109.56% | -39.28% | -87.96% | -286.53% | 218.1% | -76.19% | 180.89% | 143.49% |
| FCF per Share | 9.13 | 6.22 | 9.69 | 8.24 | -3.25 | 10.31 | 15.58 | 7.93 | 4.61 | 7.97 | 6.68 | 6.96 | 4.14 | 4.78 | 3.09 | 1.56 | 4.31 | 5.50 | 1.14 | -0.29 | 1.08 | 1.20 | 0.14 | 0.15 | -1.78 | -1.04 | -0.68 | 0.36 | 0.11 | 0.48 | 0.16 |
| FCF Conversion (FCF/Net Income) | 1.15x | 1.77x | 1.80x | 2.08x | 1.45x | 1.24x | 2.41x | 2.17x | 2.03x | 2.38x | 1.99x | 1.74x | -2.71x | 3.31x | 1.78x | 1.86x | 1.81x | 2.36x | 2.00x | 1.45x | 1.74x | 1.85x | 1.00x | 1.75x | 0.98x | 1.46x | 1.51x | 1.97x | 1.99x | 2.39x | 3.15x |
| Interest Paid | 0 | 0 | 615M | 605M | 449M | 414M | 939M | 492M | 476M | 678M | 999M | 604M | 871M | 1.04B | 697M | 816M | 752M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 1.05B | 374M | 213M | 2.06B | 1.03B | 696M | 373M | 934M | 1.51B | 127M | 1.25B | 1.39B | 1.6B | 1.11B | 1.26B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Working capital volatility
According to the provided cash flow data, Target's OCF/NI ratio has fluctuated wildly, reaching a low of 0.27 in 2025Q1, which suggests that reported net income frequently fails to translate into actual cash generation due to significant accrual-based adjustments and inventory-related working capital swings.
The wide variance in the OCF/NI ratio indicates that earnings quality is heavily influenced by non-cash items and timing differences rather than consistent operational cash flow. Investors should monitor whether this divergence is a structural byproduct of the company's inventory management strategy or a sign of deteriorating cash collection efficiency.
As reported in financial statements, Target's free cash flow margin has swung from a negative 2.2% in 2025Q1 to a peak of 7.7% in 2024Q4, highlighting a highly inconsistent cash trajectory that appears tethered to seasonal inventory cycles and periodic promotional discounting requirements.
The inability to maintain a stable FCF margin suggests that the company's cash generation is highly sensitive to the discretionary spending environment. This volatility may imply that the business model requires significant cash buffers to manage the cyclical nature of its retail operations.
Based on reported figures, Target experienced a massive $1.6 billion working capital outflow in 2025Q1, illustrating how aggressive inventory management and seasonal stocking requirements can rapidly deplete cash reserves and create significant quarterly liquidity pressure for the organization.
The frequent, large-scale swings in working capital suggest that the company struggles to align its procurement cycles with actual consumer demand. This pattern warrants further investigation into whether the current inventory replenishment model is optimized for the current retail environment or if it remains overly reliant on historical forecasting.
Data indicates that Target consistently allocates over $500 million per quarter to dividends, even during periods of negative free cash flow, suggesting a management commitment to shareholder returns that may be straining the company's internal liquidity and financial flexibility in the long term.
The persistence of dividend payments despite significant FCF volatility suggests a rigid capital allocation policy that may limit the company's ability to reinvest in store-based fulfillment or technology. Investors should monitor if this payout strategy remains sustainable if discretionary spending continues to face structural headwinds.
Quick answers to the most common questions about buying TGT stock.
Target Corporation (TGT) generated $6.56B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Target Corporation (TGT) generated $2.83B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Target Corporation (TGT) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Target Corporation (TGT) returned $2.05B to shareholders via cash dividends and spent $408.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.