The TJX Companies Inc (TJX)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.21 | 1.19 | 1.20 | 1.20 | 1.21 | 1.16 | 1.17 | 1.25 | 1.27 | 1.29 | 1.33 | 1.52 | 1.46 | 1.41 | 1.51 | 2.20 | 1.24 | 1.22 | 1.25 | 1.23 |
| Quick ratio | 0.59 | 0.43 | 0.51 | 0.54 | 0.60 | 0.36 | 0.41 | 0.49 | 0.66 | 0.66 | 0.78 | 0.95 | 1.02 | 0.95 | 0.96 | 1.06 | 0.51 | 0.35 | 0.42 | 0.41 |
| 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 |
The current ratio for The TJX Companies Inc has consistently remained above 1 over the past few years, ranging from 1.16 to 1.33. This indicates that the company has been able to meet its short-term obligations with its current assets. However, the quick ratio and cash ratio have shown more variability. The quick ratio, measuring the company's ability to cover its current liabilities with its most liquid assets, has fluctuated between 0.36 and 1.02, with a notable increase in the most recent period. This suggests that TJX has had varying levels of liquidity to cover its short-term obligations quickly.
Similarly, the cash ratio, which specifically looks at the company's ability to cover current liabilities with its cash and equivalents, also shows variability, ranging from 0.27 to 0.97. This indicates that while TJX has had periods of stronger cash reserves to cover its short-term liabilities, there have also been periods where its cash position has been relatively weaker.
Overall, the current ratio indicates that TJX has generally maintained a healthy level of liquidity over the periods analyzed. However, the variability in the quick ratio and cash ratio suggests that there have been fluctuations in the company's ability to quickly cover short-term obligations with its most liquid assets and cash reserves. Further monitoring of these ratios will be important to assess TJX's ongoing liquidity position.
See also:
Additional liquidity measure
| 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 conversion cycle | days | 19.51 | 26.65 | 21.63 | 21.45 | 20.98 | 32.03 | 28.78 | 25.48 | 17.02 | 15.99 | 12.44 | 13.58 | 0.23 | -5.49 | 22.52 | 46.26 | 24.83 | 33.36 | 29.77 | 28.96 |
The cash conversion cycle of The TJX Companies Inc has shown fluctuations over the analyzed period. The company's ability to convert its resources efficiently into cash has varied, as indicated by changes in the number of days it takes to generate cash flow from its operations.
The data shows that the cash conversion cycle ranged from a low of -5.49 days to a high of 46.26 days during the period under review. A negative cash conversion cycle suggests that the company is able to collect payments from customers before paying suppliers, indicating good liquidity management.
The average cash conversion cycle over the period is approximately 21.53 days, indicating that, on average, it takes the company around 21 days to convert its invested resources into cash. This metric is important as it reflects the efficiency of the company's working capital management.
Overall, the trend in the cash conversion cycle shows that The TJX Companies Inc has generally maintained a relatively stable cycle, with occasional fluctuations. It is essential for the company to continue monitoring and managing its working capital effectively to ensure optimal cash flow and liquidity for sustainable operations.