The TJX Companies Inc (TJX)

Cash conversion cycle

		Jan 31, 2025	Nov 2, 2024	Aug 3, 2024	May 4, 2024	Feb 3, 2024	Oct 31, 2023	Oct 28, 2023	Jul 31, 2023	Jul 29, 2023	Apr 30, 2023	Apr 29, 2023	Jan 31, 2023	Jan 28, 2023	Oct 31, 2022	Oct 29, 2022	Jul 31, 2022	Jul 30, 2022	Apr 30, 2022	Jan 31, 2022	Jan 29, 2022
Days of inventory on hand (DOH)	days	59.92	77.89	60.96	55.25	52.78	73.34	74.72	61.06	58.36	53.67	53.37	48.00	50.47	78.45	79.27	68.70	60.81	62.84	50.01	51.88
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	5.02	—	5.00	—	4.35	—	4.90	—	5.51	—	4.79	—	—	4.53
Number of days of payables	days	—	—	—	—	—	—	48.93	—	39.33	—	35.66	—	32.90	—	47.52	—	35.07	—	—	38.85
Cash conversion cycle	days	59.92	77.89	60.96	55.25	52.78	73.34	30.82	61.06	24.02	53.67	22.06	48.00	22.46	78.45	37.26	68.70	30.53	62.84	50.01	17.56

January 31, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 59.92 + — – —
= 59.92

The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. For The TJX Companies Inc, the cash conversion cycle has fluctuated over time based on the provided data.

From January 29, 2022, to January 31, 2022, the cash conversion cycle increased significantly from 17.56 days to 50.01 days, indicating a lengthening in the time it takes for the company to convert its investments into cash. This trend continued through April 30, 2022, reaching a peak of 62.84 days, before decreasing slightly by July 30, 2022, to 30.53 days.

However, the cycle increased once again to 68.70 days by July 31, 2022, before fluctuating between 37.26 days and 78.45 days in the subsequent months up to January 31, 2023. From there, the cycle decreased to a low of 22.06 days by April 29, 2023, before rising again to 73.34 days by October 31, 2023.

Over the following periods up to November 2, 2024, the cash conversion cycle for The TJX Companies Inc remained relatively stable, hovering around the range of 52.78 days to 77.89 days. The cycle showed a slight decrease to 59.92 days by January 31, 2025.

Overall, the fluctuations in the cash conversion cycle for The TJX Companies Inc suggest variations in the company's management of inventory, accounts receivable, and accounts payable, impacting the efficiency of its cash flow conversion process. Continual monitoring and analysis of the cash conversion cycle can provide insights into the company's working capital management and operational efficiency.