Does Target have sufficient cash flow?

**Target's cash flow situation appears challenging**, as evidenced by the negative free cash flow and the decrease in cash and cash equivalents. Here's a detailed analysis:

1. **Negative Free Cash Flow**: Target's free cash flow as of March 31, 2025, is -$515 million. This negative value indicates that the company's operations have not generated sufficient cash to cover its needs, potentially due to factors such as operational inefficiencies, increased investments, or decreased revenue.

|code|Ticker|Name|Date|Free Cash Flow|Investing Cash Flow|Operating Cash Flow|Financing Cash Flow|market_code|
|---|---|---|---|---|---|---|---|---|
|TGT|TGT.N|Target|2025 Q2|1.28076562E9|-6.34E8|2.238E9|-1.711E9|169|
|TGT|TGT.N|Target|2025 Q3|1.818805072E9|-6.37E8|7.39E8|-1.66E8|169|
|TGT|TGT.N|Target|2025 Q4|4.039598248E9|-9.18E8|3.289E9|-1.042E9|169|
|TGT|TGT.N|Target|2026 Q1|-4.29042276E8||||169|

2. **Decrease in Cash and Cash Equivalents**: The company's cash and cash equivalents have decreased as of May 3, 2025. This decline suggests that Target is relying on financing activities or has less liquidity than previously, which could be a concern for investors regarding the company's financial health and its ability to meet short-term obligations.

|code|Ticker|Name|Date|Cash and Cash Equivalents YoY|Cash and Cash Equivalents|market_code|
|---|---|---|---|---|---|---|
|TGT|TGT.N|Target|2025 Q2|116.26468769325913|3.497E9|169|
|TGT|TGT.N|Target|2025 Q3|79.73821989528795|3.433E9|169|
|TGT|TGT.N|Target|2025 Q4|25.151116951379766|4.762E9|169|

3. **Liquidity Ratios**: The quick ratio is 0.25% and the current ratio is 0.94%. These low ratios suggest that Target has limited ability to meet its short-term obligations with its current and quickly liquidable assets, which is a red flag for liquidity and potential bankruptcy risk.

|code|Ticker|Name|Date|Current Ratio|Quick Ratio|market_code|
|---|---|---|---|---|---|---|
|TGT|TGT.N|Target|2025 Q2|0.8966|0.2659|169|
|TGT|TGT.N|Target|2025 Q3|0.9432|0.2473|169|
|TGT|TGT.N|Target|2025 Q4|0.9353|0.3228|169|
|TGT|TGT.N|Target|2026 Q1|0.9351|0.2481|169|

In conclusion, Target's cash flow situation is under strain, as indicated by the negative free cash flow and the decrease in cash and cash equivalents. The company's liquidity ratios also suggest a need for caution regarding its ability to meet short-term obligations. These factors combined paint a picture of a challenging cash flow situation for Target.