The TJX Companies Inc (TJX)
Operating return on assets (Operating ROA)
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 6,302,000 | -6,693,000 | 5,797,000 | 5,078,000 | -6,152,000 |
| Total assets | US$ in thousands | 31,749,000 | 29,747,000 | 29,747,000 | 28,349,000 | 28,349,000 |
| Operating ROA | 19.85% | -22.50% | 19.49% | 17.91% | -21.70% |
January 31, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $6,302,000K ÷ $31,749,000K
= 19.85%
The operating return on assets (ROA) of The TJX Companies Inc has shown significant fluctuations over the past few years based on the provided data.
In January 2023, the operating ROA was at a negative -21.70%, indicating that the company's operating income was insufficient to cover its assets. However, there was a substantial improvement by January 2024, with the operating ROA increasing to 19.49%, reflecting a more efficient utilization of assets to generate operating income.
Despite the positive trend in early 2024, there was a sharp decline in February 2024, as the operating ROA fell to -22.50%. This downturn suggests a sudden decrease in operating income relative to the company's asset base.
By January 2025, The TJX Companies Inc was able to recover and achieve a strong operating ROA of 19.85%, demonstrating improved profitability and effective management of assets to generate operating returns.
Overall, the company's operating ROA has shown volatility over the years, with periods of both negative and positive performance. The management should continue to focus on optimizing asset utilization to sustain and enhance profitability in the future.
Peer comparison
Jan 31, 2025