The TJX Companies Inc (TJX)
Quick ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 5,600,000 | 5,477,000 | 6,227,000 | 10,469,600 | 3,216,750 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 588,000 | 682,000 | 632,160 | 497,401 | 433,230 |
| Total current liabilities | US$ in thousands | 10,451,000 | 10,305,000 | 10,468,000 | 10,803,700 | 7,150,250 |
| Quick ratio | 0.59 | 0.60 | 0.66 | 1.02 | 0.51 |
February 3, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($5,600,000K
+ $—K
+ $588,000K)
÷ $10,451,000K
= 0.59
The quick ratio of The TJX Companies Inc has displayed fluctuations over the past five years. The quick ratio decreased from 1.02 in January 2021 to 0.59 in February 2024. This downward trend indicates a decline in the company's ability to cover its short-term obligations using its most liquid assets.
Although the quick ratio improved slightly to 0.60 in January 2023, it remained relatively stable at 0.66 in January 2022 before dropping again in the subsequent year. The quick ratio of 0.51 in February 2020 marked a significant decrease compared to the previous years.
Overall, the declining trend in The TJX Companies Inc's quick ratio suggests a potential strain on the company's liquidity and ability to meet its short-term financial obligations. It may be worthwhile for stakeholders to closely monitor this ratio to assess the company's financial health and management of liquidity in the future.
Peer comparison
Feb 3, 2024