The TJX Companies Inc (TJX)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	54,112,000	52,435,200	51,336,500	50,421,500	50,045,000	49,201,000	49,566,600	49,558,400	48,238,600	45,096,600	42,682,000	37,514,780	31,836,970	33,400,270	33,734,270	36,848,290	41,716,980	40,637,780	40,012,240	39,561,760
Total current assets	US$ in thousands	12,664,000	13,806,000	12,338,000	12,595,000	12,456,000	12,989,000	11,835,000	12,480,000	13,259,000	14,576,100	13,389,000	15,016,000	15,739,300	16,653,900	11,517,900	10,296,200	8,890,620	9,374,620	8,268,600	8,067,210
Total current liabilities	US$ in thousands	10,451,000	11,640,000	10,317,000	10,534,000	10,305,000	11,234,000	10,147,000	10,019,000	10,468,000	11,328,700	10,042,100	9,906,960	10,803,700	11,817,200	7,647,250	4,669,550	7,150,250	7,687,140	6,600,740	6,581,020
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

February 3, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (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 fluctuated over the past few quarters, indicating the efficiency with which the company is generating revenue from its working capital.

The ratio peaked at 29.36 in July 2022, suggesting that the company was able to generate $29.36 in revenue for every dollar of working capital invested during that period. This indicates a strong efficiency in managing its working capital.

However, the ratio showed a significant decline in subsequent quarters, reaching its lowest point of 6.45 in January 2021. This sharp decline suggests a potential inefficiency in utilizing working capital during that period.

Overall, the working capital turnover for The TJX Companies Inc has shown volatility, with periods of strong efficiency followed by periods of relative inefficiency. It is important for the company to closely monitor and manage its working capital to ensure optimal utilization and sustainable profitability.