The TJX Companies Inc (TJX)
Activity ratios
Short-term
Turnover ratios
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Inventory turnover | 6.09 | 8.28 | 6.36 | 6.21 | 7.93 |
| Receivables turnover | — | 92.03 | — | — | 73.38 |
| Payables turnover | — | 12.79 | — | — | 12.17 |
| Working capital turnover | 28.42 | 24.45 | 24.50 | 23.22 | 23.27 |
The TJX Companies Inc's Inventory turnover ratio indicates the number of times the company's inventory is sold and replaced during a specific period. The trend shows that in the most recent period, the company's inventory turnover increased to 6.09 from 6.21 in the previous year, suggesting a more efficient management of inventory.
The Receivables turnover ratio reflects how efficiently the company collects payments from customers. TJX's data shows that the receivables turnover was not available for some periods but increased to 92.03 in February 3, 2024, indicating a quicker collection of receivables in that period.
The Payables turnover ratio signifies how fast the company is paying its suppliers. In the available data, the Payables turnover was not provided for some periods, but in February 3, 2024, the ratio was 12.79, indicating the company's ability to efficiently manage its payables.
The Working Capital turnover ratio measures how well a company uses its working capital to generate revenue. TJX's working capital turnover improved from 23.22 in January 31, 2023, to 28.42 in January 31, 2025, showing an enhancement in utilizing its working capital more effectively to generate sales.
In summary, The TJX Companies Inc showed improvements in inventory turnover, receivables turnover, and working capital turnover ratios, indicating better efficiency in managing its resources for generating sales, while the payables turnover was efficient in the available period.
Average number of days
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 59.92 | 44.09 | 57.37 | 58.76 | 46.00 |
| Days of sales outstanding (DSO) | days | — | 3.97 | — | — | 4.97 |
| Number of days of payables | days | — | 28.55 | — | — | 29.99 |
The TJX Companies Inc's activity ratios provide insight into the efficiency of the company's operations:
1. Days of Inventory on Hand (DOH):
- January 28, 2023: 46.00 days
- January 31, 2023: 58.76 days
- January 31, 2024: 57.37 days
- February 3, 2024: 44.09 days
- January 31, 2025: 59.92 days
The trend in DOH indicates that TJX has been able to reduce the number of days inventory is held on hand over the years, except for a slight increase in 2024. A lower DOH is favorable as it suggests efficient inventory management.
2. Days of Sales Outstanding (DSO):
- January 28, 2023: 4.97 days
- January 31, 2023: No data
- January 31, 2024: No data
- February 3, 2024: 3.97 days
- January 31, 2025: No data
The DSO represents the average number of days it takes for TJX to collect revenue after a sale. The available data shows a relatively low DSO in 2023 and 2024 when data is provided, indicative of efficient accounts receivable management.
3. Number of Days of Payables:
- January 28, 2023: 29.99 days
- January 31, 2023: No data
- January 31, 2024: No data
- February 3, 2024: 28.55 days
- January 31, 2025: No data
The number of days of payables reflects how long it takes TJX to pay its suppliers. The available data shows consistent payment efficiency in managing payables in 2023 and 2024 based on the limited information provided.
Overall, these activity ratios suggest that The TJX Companies Inc has generally been effective in managing its inventory, receivables, and payables, indicating good operational efficiency.
See also:
The TJX Companies Inc Short-term (Operating) Activity Ratios
Long-term
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | 8.23 | — | 3.36 | 8.65 |
| Total asset turnover | 1.78 | 1.82 | 1.82 | 1.76 | 1.77 |
The TJX Companies Inc's fixed asset turnover ratio has shown variability over the years. In January 2023, the fixed asset turnover ratio was 8.65, indicating that the company generated $8.65 in sales for every dollar invested in fixed assets. This ratio decreased significantly to 3.36 by January 31, 2023, before data was unavailable for January 31, 2024. However, by February 3, 2024, the fixed asset turnover ratio rebounded to 8.23, reflecting improved efficiency in utilizing fixed assets to generate sales. As of January 31, 2025, data was again unavailable for analysis.
In comparison, The TJX Companies Inc's total asset turnover ratio has remained relatively stable over the years. The total asset turnover ratio was 1.77 in January 28, 2023, and remained consistent at 1.76 on January 31, 2023. It slightly increased to 1.82 by January 31, 2024, and maintained the same ratio on February 3, 2024. However, by January 31, 2025, the total asset turnover ratio decreased to 1.78.
Overall, the fixed asset turnover ratio indicates the company's ability to efficiently utilize its fixed assets to generate revenue, with fluctuations observed over the years. Meanwhile, the total asset turnover ratio reflects the company's overall efficiency in generating sales relative to its total assets, showing some stability in performance.
See also:
The TJX Companies Inc Long-term (Investment) Activity Ratios