The TJX Companies Inc (TJX)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	5,600,000	4,290,000	4,550,000	5,025,000	5,477,000	3,365,000	3,531,000	4,295,000	6,227,000	6,791,600	7,106,020	8,775,480	10,469,600	10,582,000	6,620,410	4,287,840	3,216,750	2,060,180	2,186,380	2,235,060
Short-term investments	US$ in thousands	—	—	—	—	—	—	212	68	—	—	—	—	—	18,007	—	—	—	—	—	0
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
Cash ratio		0.54	0.37	0.44	0.48	0.53	0.30	0.35	0.43	0.59	0.60	0.71	0.89	0.97	0.90	0.87	0.92	0.45	0.27	0.33	0.34

February 3, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($5,600,000K + $—K) ÷ $10,451,000K
= 0.54

The cash ratio of The TJX Companies Inc has fluctuated over the past few quarters, ranging from a low of 0.27 to a high of 0.97. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates that the company has a higher proportion of cash to cover its short-term obligations.

In the most recent period, the cash ratio stood at 0.54, suggesting the company had enough cash equivalents to cover 54% of its short-term liabilities. This indicates a relatively healthy liquidity position, providing a buffer against any unexpected financial obligations. In comparison, the cash ratio reached its peak at 0.97 in January 2021, indicating a stronger liquidity position at that time.

The downward trend in the cash ratio from 0.89 in May 2021 to 0.54 in February 2024 may raise some concerns about the company's liquidity management. It is essential for stakeholders to monitor this trend and assess the reasons behind the decrease in the cash ratio. Overall, maintaining a healthy cash ratio is crucial for ensuring the company's ability to meet its short-term financial obligations.