The TJX Companies Inc (TJX)
Profitability ratios
Return on sales
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Gross profit margin | 30.60% | 8.75% | 30.00% | 27.61% | 7.74% |
| Operating profit margin | 11.18% | -12.37% | 10.69% | 10.17% | -12.29% |
| Pretax margin | 11.50% | 11.03% | 11.01% | 9.28% | 9.26% |
| Net profit margin | 8.63% | 8.27% | 8.25% | 7.00% | 6.99% |
The gross profit margin of The TJX Companies Inc has shown improvement over the years, increasing from 7.74% in January 28, 2023, to 30.60% in January 31, 2025. This indicates that the company has been able to effectively control its cost of goods sold and potentially increase its pricing power.
The operating profit margin demonstrates the company's ability to generate profit from its core operations. Despite a dip to -12.29% on January 28, 2023, the margin has consistently improved, reaching 11.18% on January 31, 2025. This indicates that the company has been able to efficiently manage its operating expenses over time.
The pretax margin reflects the company's ability to generate profit before accounting for taxes. The trend shows consistent improvement, with the margin increasing from 9.26% in January 28, 2023, to 11.50% in January 31, 2025. This indicates that The TJX Companies Inc has been able to enhance its operational efficiency and profitability.
The net profit margin reflects the company's ability to generate profit after all expenses have been deducted. The margins have shown a steady increase from 6.99% in January 28, 2023, to 8.63% in January 31, 2025. This indicates that the company has been successful in not only controlling its costs but also improving its overall profitability.
Return on investment
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 19.85% | -22.50% | 19.49% | 17.91% | -21.70% |
| Return on assets (ROA) | 15.32% | 15.04% | 15.04% | 12.34% | 12.34% |
| Return on total capital | 75.09% | 59.51% | 82.80% | 79.79% | 51.25% |
| Return on equity (ROE) | 57.95% | 61.27% | 61.27% | 54.97% | 54.97% |
The TJX Companies Inc has shown fluctuating profitability ratios over the past few years.
1. Operating Return on Assets (Operating ROA):
- The company's Operating ROA was negative in some periods, indicating that its operating income was not sufficient to cover its assets. However, it rebounded to positive figures in subsequent periods, reaching a peak of 19.85% on January 31, 2025, demonstrating an improvement in operational efficiency.
2. Return on Assets (ROA):
- ROA remained relatively stable over the years, ranging between 12.34% and 15.32%. This ratio indicates the company's ability to generate profits from its total assets, and the increasing trend suggests improved asset utilization and profitability.
3. Return on Total Capital:
- Return on Total Capital fluctuated notably, with a high of 82.80% on January 31, 2024, and a low of 51.25% on January 28, 2023. This ratio measures the efficiency of the company in generating returns from both equity and debt capital invested.
4. Return on Equity (ROE):
- ROE remained relatively stable over the years, indicating consistent returns to equity holders. The decline in ROE from 61.27% on February 3, 2024, to 57.95% on January 31, 2025, could be attributed to changes in the company's financial structure or profitability.
Overall, The TJX Companies Inc has shown improvements in its profitability ratios over the years, with potential areas for further optimization to sustain and enhance its financial performance.