The TJX Companies Inc (TJX)

Activity ratios

Short-term

Turnover ratios

	Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Inventory turnover	8.28	5.78	7.13	7.18	7.93	5.47	6.47	6.56	7.49	6.35	7.87	7.04	7.47	6.65	8.95	7.19	7.83	5.93	7.20	7.16
Receivables turnover	92.03	75.34	73.76	79.65	73.38	69.00	74.22	78.66	76.31	64.26	57.89	54.74	64.01	51.43	44.99	56.33	96.29	64.99	71.94	91.62
Payables turnover	12.79	8.83	10.58	10.75	12.17	9.12	11.23	10.49	10.00	7.74	9.08	8.12	6.72	5.41	13.83	33.18	14.28	10.79	14.05	14.05
Working capital turnover	24.45	24.21	25.40	24.46	23.27	28.03	29.36	20.14	17.28	13.89	12.75	7.34	6.45	6.91	8.72	6.55	23.97	24.08	23.99	26.62

The activity ratios of The TJX Companies Inc provide insight into the efficiency with which the company manages its assets and liabilities.

1. Inventory turnover: The inventory turnover ratio measures how many times a company sells and replaces its inventory within a given period. TJX's inventory turnover has been relatively stable, ranging between 5.47 and 8.28 over the past several quarters, indicating that the company is effectively managing its inventory levels and turning over stock efficiently.

2. Receivables turnover: This ratio shows how quickly a company collects payments from its customers. TJX's receivables turnover has fluctuated, but generally remained above 50, indicating that the company is efficient in collecting payments from customers.

3. Payables turnover: The payables turnover ratio measures how quickly a company pays its suppliers. TJX's payables turnover has also varied, but has generally been between 8 and 14, suggesting that the company is managing its supplier payments effectively.

4. Working capital turnover: This ratio evaluates how well a company generates revenue from its working capital. TJX's working capital turnover has shown some volatility but has mostly stayed within a range of 6 to 29, indicating that the company is utilizing its working capital efficiently to generate revenue.

Overall, based on these activity ratios, The TJX Companies Inc appears to be effectively managing its assets and liabilities to drive operational efficiency and maintain a healthy financial position.

Average number of days

		Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Days of inventory on hand (DOH)	days	44.09	63.16	51.17	50.83	46.00	66.76	56.37	55.62	48.73	57.46	46.35	51.85	48.84	54.92	40.80	50.78	46.61	61.58	50.67	50.96
Days of sales outstanding (DSO)	days	3.97	4.84	4.95	4.58	4.97	5.29	4.92	4.64	4.78	5.68	6.31	6.67	5.70	7.10	8.11	6.48	3.79	5.62	5.07	3.98
Number of days of payables	days	28.55	41.35	34.49	33.97	29.99	40.02	32.51	34.78	36.50	47.15	40.22	44.94	54.32	67.50	26.40	11.00	25.56	33.83	25.97	25.98

Days of inventory on hand (DOH) measures how many days it takes the company to sell its entire inventory. A lower DOH indicates that inventory is turning over faster, which is generally favorable as it suggests efficient inventory management. The trend for The TJX Companies Inc shows some fluctuations, with a decrease in recent periods, suggesting potential improvements in managing inventory levels.

Days of sales outstanding (DSO) measures how long it takes the company to collect payment from customers. A lower DSO indicates that the company is collecting payments more quickly, which is positive. The trend for The TJX Companies Inc shows fluctuations, with some variability in recent periods, but generally maintaining a relatively stable collection period.

Number of days of payables measures how long the company takes to pay its suppliers. A higher number of days of payables indicates that the company is taking longer to pay its bills, which can be beneficial for cash flow management. The trend for The TJX Companies Inc shows fluctuations, with periods of both increase and decrease in the number of days of payables.

Overall, The TJX Companies Inc's activity ratios depict some variability in the management of inventory, collection of receivables, and payment of payables. Efforts to further optimize inventory turnover, collection efficiency, and payable periods could potentially enhance the company's overall operational efficiency and financial performance.

Long-term

	Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Fixed asset turnover	8.23	8.37	8.33	8.55	8.65	8.83	9.20	9.37	9.15	8.73	8.36	7.40	6.32	6.67	6.61	7.08	7.83	7.74	7.94	7.88
Total asset turnover	1.82	1.73	1.77	1.76	1.77	1.73	1.83	1.79	1.69	1.50	1.48	1.24	1.03	1.06	1.27	1.45	1.73	1.67	1.75	1.76

The TJX Companies Inc's long-term activity ratios indicate the efficiency of the company in utilizing its assets over time.

1. Fixed Asset Turnover: The company's fixed asset turnover has been relatively stable over the periods analyzed, ranging from 6.32 to 9.37. This ratio measures how well the company generates sales from its investment in fixed assets. The consistently high fixed asset turnover suggests that The TJX Companies Inc efficiently utilizes its fixed assets to generate sales revenue.

2. Total Asset Turnover: The total asset turnover ratio shows how efficiently the company uses all its assets to generate sales. The ratio has also been relatively stable, averaging around 1.60 over the periods analyzed. This indicates that the company generates approximately $1.60 in sales for every $1 in assets. The stable total asset turnover suggests that The TJX Companies Inc effectively manages its total asset base to drive revenue generation.

Overall, based on the fixed asset turnover and total asset turnover ratios, The TJX Companies Inc demonstrates consistent efficiency in utilizing its assets to drive sales and generate revenue.