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.
Peer comparison
Feb 3, 2024