The TJX Companies Inc (TJX)
Liquidity ratios
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Current ratio | 1.18 | 1.21 | 1.21 | 1.21 | 1.21 |
| Quick ratio | 0.48 | 0.59 | 0.54 | 0.53 | 0.60 |
| Cash ratio | 0.48 | 0.54 | 0.54 | 0.53 | 0.53 |
The TJX Companies Inc's liquidity ratios show a stable current ratio of around 1.21 over the past few years, indicating that the company has sufficient current assets to cover its current liabilities. However, there was a slight decrease in the current ratio to 1.18 as of January 31, 2025, which may be a point of concern.
The quick ratio, which provides a more stringent measure of liquidity excluding inventory, has shown some fluctuation but generally remains below 1. This indicates that the company may have difficulty meeting its short-term obligations without relying on inventory sales.
The cash ratio, reflecting the company's ability to cover current liabilities with its most liquid assets, has remained relatively stable around 0.50. This suggests that The TJX Companies Inc holds a moderate level of cash and near-cash assets to cover its short-term liabilities.
Overall, while the company's current ratio indicates a good level of liquidity, its quick ratio and cash ratio suggest a more cautious view of its ability to meet immediate obligations without relying heavily on inventory or other less liquid assets.
See also:
Additional liquidity measure
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 59.92 | 19.51 | 57.37 | 58.76 | 20.98 |
The cash conversion cycle of The TJX Companies Inc has shown fluctuations over the years. Starting at 20.98 days on January 28, 2023, it increased to 58.76 days on January 31, 2023, indicating a longer period for the company to convert its investments in inventory into cash receipts from sales. Subsequently, there was a slight improvement with 57.37 days on January 31, 2024. However, a significant decrease was observed on February 3, 2024, with the cash conversion cycle dropping to 19.51 days, reflecting a more efficient cycle.
Despite this improvement, the cycle increased again to 59.92 days by January 31, 2025, suggesting a longer time frame for TJX Companies Inc to complete the conversion process. This may indicate challenges with managing inventory, collection from customers, or payment to suppliers. Overall, there have been fluctuations in the cash conversion cycle of the company, highlighting the importance of monitoring efficiency in managing working capital.