Target Corporation — Earnings Quality Grade F
TGT · Consumer Defensive
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 4 days, change +1 days YoY
AR outpaced revenue for 2 consecutive years
Revenue -1.7%, CFFO -10.9%. Cash follows revenue
Expense Quality
Inventory -3.4% vs COGS -1.3%. Normal
CapEx growth 28.9% is >2x revenue growth -1.7%
SG&A/Gross Profit = 73.6%, exceeds 70%
Gross margin 27.9%, change -0.3pp. Stable
Cash Flow Quality
CFFO/NI = 1.77. Profits backed by cash
FCF $2.8B, FCF/NI = 0.77
Accruals ratio = -4.8%. Low accruals
Cash $5.5B covers only 27% of debt $20.3B
Balance Sheet Health
Goodwill+Intangibles $0.6B = 4% of equity. Manageable
Debt/EBITDA = 2.4x. Healthy
Other assets grew 139.9% vs revenue -1.7%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 0% YoY. Normal
Manipulation Score
M-Score = -2.33 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10