The TJX Companies Inc (TJX)

Liquidity ratios

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
Current ratio 1.18 1.19 1.21 1.23 1.21 1.19 1.19 1.20 1.20 1.20 1.20 1.21 1.21 1.16 1.16 1.17 1.17 1.25 1.27 1.27
Quick ratio 0.48 0.39 0.49 0.50 0.54 0.37 0.43 0.44 0.51 0.48 0.54 0.53 0.60 0.30 0.36 0.35 0.41 0.43 0.59 0.66
Cash ratio 0.48 0.39 0.49 0.50 0.54 0.37 0.37 0.44 0.44 0.48 0.48 0.53 0.53 0.30 0.30 0.35 0.35 0.43 0.59 0.59

The current ratio of The TJX Companies Inc has been fluctuating slightly over the past few years, ranging between 1.16 to 1.27. This indicates that the company has generally been able to meet its short-term obligations with its current assets. However, a declining trend is observed towards the end of the data period, with the current ratio dropping to 1.18 in January 2025.

On the other hand, the quick ratio of the company has shown more variability, dipping as low as 0.30 in October 2022 and reaching a peak of 0.60 in January 2023. This ratio reflects the ability of the company to meet its short-term liabilities with its most liquid assets. The trend has been irregular, with some periods showing better liquidity positions than others.

The cash ratio, which assesses the company's ability to cover its current liabilities with cash and cash equivalents, has followed a similar pattern to the quick ratio, indicating fluctuations in the company's cash position over time. The ratio has ranged from 0.30 to 0.59, suggesting some degree of variability in the company's ability to cover its short-term obligations with cash holdings.

Overall, while the current ratio of The TJX Companies Inc generally indicates a satisfactory level of liquidity, the more stringent quick and cash ratios show that the company's ability to meet its short-term liabilities with its most liquid assets has been subject to fluctuations. Monitoring these ratios closely can provide insights into the company's short-term financial health and liquidity management.


See also:

The TJX Companies Inc Liquidity Ratios (Quarterly Data)


Additional liquidity measure

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
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

The cash conversion cycle of The TJX Companies Inc has shown fluctuations over the periods indicated in the data. The cash conversion cycle represents the time it takes for a company to convert its investment in inventory back into cash.

In January 2022, the cash conversion cycle was relatively low at 17.56 days, indicating that the company efficiently converted its inventory into sales and cash. However, by January 2023, the days increased to 48.00, signifying a longer time to convert inventory into cash.

The company experienced its longest cash conversion cycle in October 2022 and November 2024, with 78.45 days and 77.89 days respectively. This suggests that TJX had to wait a longer period to receive cash from its inventory sales during these times.

In general, a shorter cash conversion cycle is desirable as it indicates efficient inventory management and quicker cash inflows. Conversely, a longer cycle may signify issues such as slow-moving inventory, liquidity challenges, or delays in receiving payments.

Overall, TJX should aim to manage its cash conversion cycle effectively to ensure optimal utilization of resources and improve its working capital efficiency.