We calculated return on equity using Dupont Analysis.

Target’s return on equity for the year

2020 is 30.5% which is highest amongst its peers.  
This has three drivers (next slide), their industry-leading net profit margin, their efficient
use of assets and their use of financial leverage. We have included all the ratio graphs in the
appendices, and the most important factors are here:   
 Firstly, Target is the most profitable company since it has the highest Net
Profit and EBITDA margin as compared to its peers. This is mainly driven
by having the lowest COGS/Revenue throughout the 3 years and its focus
on selling higher profit margin products.  
 Secondly, Target is leading in Return on Assets ratio. The company has
achieved this by almost doubling the revenue from digital sales and
increasing its revenue per square foot, with a CAGR of 7% over three years.   
 In terms of leverage, Target does have the second
highest Debt/EBITDA amongst its peers. However, it has successfully decreased
its Debt/EBITDA ratio by 22% over 3-year period, which reflects positively on its
credit metrics.   
Overall, the company has been able to generate strong margins, efficient use assets
and maintained a high return on equity for investors.