The TJX Companies Inc (TJX)

Working capital 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
Total current assets	US$ in thousands	12,664,000	12,456,000	13,259,000	15,739,300	8,890,620
Total current liabilities	US$ in thousands	10,451,000	10,305,000	10,468,000	10,803,700	7,150,250
Working capital turnover		24.45	23.27	17.28	6.39	23.95

February 3, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $54,112,000K ÷ ($12,664,000K – $10,451,000K)
= 24.45

The working capital turnover ratio for The TJX Companies Inc has shown a consistent upward trend over the past five years. It increased from 6.39 in January 30, 2021, to 24.45 in February 3, 2024, indicating a significant improvement in efficiency in utilizing working capital to support revenue generation.

A higher working capital turnover ratio suggests that the company is able to efficiently generate revenue using its current assets and liabilities. This consistent increase over the years reflects improved operating efficiencies, better inventory management, and effective utilization of resources to drive sales.

The company's ability to generate more sales revenue relative to its working capital demonstrates healthy liquidity and operational effectiveness. Overall, The TJX Companies Inc has shown a strong performance in utilizing its working capital efficiently to support its business operations and drive revenue growth.