The TJX Companies Inc (TJX)
Fixed asset turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 54,112,000 | 50,045,000 | 48,238,500 | 31,551,700 | 41,675,600 |
| Property, plant and equipment | US$ in thousands | 6,571,000 | 5,783,000 | 5,271,000 | 5,036,100 | 5,325,050 |
| Fixed asset turnover | 8.23 | 8.65 | 9.15 | 6.27 | 7.83 |
February 3, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $54,112,000K ÷ $6,571,000K
= 8.23
The fixed asset turnover ratio for The TJX Companies Inc has shown a declining trend over the past five years, moving from 7.83 in 2020 to 8.23 in 2024. This ratio measures how efficiently the company is generating revenue from its fixed assets.
A higher fixed asset turnover ratio indicates that the company is generating more revenue per dollar invested in fixed assets. Despite the fluctuations, TJX has maintained a relatively high fixed asset turnover ratio compared to previous years. This suggests that the company has been effectively utilizing its fixed assets to generate sales.
Overall, a high fixed asset turnover ratio is generally favorable as it indicates effective asset utilization. However, it is important to consider other factors such as industry benchmarks and company-specific dynamics to gain a complete understanding of TJX's performance in this regard.
Peer comparison
Feb 3, 2024