The TJX Companies Inc (TJX)
Current ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 12,664,000 | 12,456,000 | 13,259,000 | 15,739,300 | 8,890,620 |
| Total current liabilities | US$ in thousands | 10,451,000 | 10,305,000 | 10,468,000 | 10,803,700 | 7,150,250 |
| Current ratio | 1.21 | 1.21 | 1.27 | 1.46 | 1.24 |
February 3, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $12,664,000K ÷ $10,451,000K
= 1.21
The current ratio for The TJX Companies Inc has shown a decreasing trend over the past five years, declining from 1.24 in 2020 to 1.21 in 2023 and 2024. This indicates that the company's current assets may not be as robust relative to its current liabilities as they were in previous years.
A current ratio below 1 would suggest that the company may have difficulty meeting its short-term obligations using its current assets alone, but The TJX Companies Inc has consistently maintained a current ratio above 1, indicating that it can cover its current liabilities with its current assets. However, the decreasing trend in the current ratio could be a cause for concern as it suggests a relative weakening of liquidity position over the years.
It is important for investors and stakeholders to monitor this trend closely to ensure that The TJX Companies Inc maintains adequate liquidity to cover its short-term obligations and operational needs. A low current ratio could potentially signal financial distress or inefficiencies in managing working capital, prompting further analysis of the company's financial health and operational efficiency.
Peer comparison
Feb 3, 2024