The TJX Companies Inc (TJX)
Profitability ratios
Return on sales
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 8.75% | 7.74% | 7.43% | 24.10% | 28.48% |
| Operating profit margin | -12.37% | -12.29% | -13.17% | -27.70% | -11.51% |
| Pretax margin | 11.03% | 9.26% | 9.12% | 0.28% | 10.57% |
| Net profit margin | 8.27% | 6.99% | 6.81% | 0.29% | 7.85% |
The profitability ratios of The TJX Companies Inc show fluctuations over the past five years. The gross profit margin has declined slightly from 28.48% in 2020 to 8.75% in 2024, indicating a decrease in the percentage of revenue retained after accounting for the cost of goods sold.
The operating profit margin has also shown a negative trend, with a significant decrease from -11.51% in 2020 to -12.37% in 2024. This suggests that the company's operating expenses are high relative to its revenue, resulting in operating losses.
On the other hand, the pretax margin has shown improvement, increasing from 0.28% in 2021 to 11.03% in 2024. This indicates that the company's profitability before taxes has improved significantly in recent years.
The net profit margin, which represents the percentage of revenue that translates into net income, has also shown fluctuations but has generally improved from 0.29% in 2021 to 8.27% in 2024.
Overall, The TJX Companies Inc has shown mixed performance in terms of profitability ratios, with improvements in pretax and net profit margins, but declines in gross and operating profit margins. This suggests that the company has been able to better manage its expenses and increase its net income relative to its revenue in recent years, despite facing challenges in maintaining gross profitability.
Return on investment
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -22.50% | -21.70% | -22.32% | -28.36% | -19.86% |
| Return on assets (ROA) | 15.04% | 12.34% | 11.54% | 0.29% | 13.55% |
| Return on total capital | 59.51% | 51.25% | 48.31% | 2.59% | 54.83% |
| Return on equity (ROE) | 61.27% | 54.97% | 54.69% | 1.54% | 55.01% |
The profitability ratios of The TJX Companies Inc show a mixed performance over the past five years. The Operating return on assets (Operating ROA) has been consistently negative, indicating that the company has been unable to generate profits from its core operations efficiently. However, the Return on assets (ROA) has shown improvement, indicating that the company has been more effective in generating profits from its total assets.
The Return on total capital has also shown a positive trend, with a significant increase over the years, reaching 59.51% in the latest period. This suggests that the company has been able to generate higher returns from its total invested capital.
The Return on equity (ROE) has also improved significantly, showing a strong performance in the latest period at 61.27%. This indicates that the company has been able to generate higher profits for its equity shareholders.
Overall, while the Operating ROA remains a concern, the positive trends in ROA, Return on total capital, and ROE suggest that The TJX Companies Inc has been making progress in terms of profitability and efficiency in utilizing its assets and capital.