The TJX Companies Inc (TJX)
Operating return on assets (Operating ROA)
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -6,693,000 | -6,152,000 | -6,353,750 | -8,739,960 | -4,796,180 |
| Total assets | US$ in thousands | 29,747,000 | 28,349,000 | 28,461,000 | 30,814,000 | 24,145,000 |
| Operating ROA | -22.50% | -21.70% | -22.32% | -28.36% | -19.86% |
February 3, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $-6,693,000K ÷ $29,747,000K
= -22.50%
The operating return on assets (Operating ROA) for The TJX Companies Inc has shown a declining trend over the past five years, with negative values indicating that the company's operating income generated from its assets has been insufficient to cover the asset base.
The negative operating ROA values suggest that the company's operating income has been consistently lower than its asset base, which can be a concerning sign of inefficiency in the utilization of assets to generate profits.
The decreasing trend in operating ROA from -19.86% in 2020 to -22.50% in 2024 indicates a worsening performance in terms of generating income from its assets over the years. This trend may raise red flags for investors and stakeholders as it could signal operational challenges or strategic issues within the company.
Given the consistently negative values, it is essential for The TJX Companies Inc to evaluate and improve its operational efficiency, asset management, and profitability strategies to enhance its operating ROA and overall financial performance in the future.
Peer comparison
Feb 3, 2024