The TJX Companies Inc (TJX)

Operating return on assets (Operating ROA)

		Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Operating income (ttm)	US$ in thousands	-6,693,000	-6,173,430	-5,969,592	-5,777,852	-6,151,992	-6,362,712	-6,433,490	-6,495,930	-6,353,750	-275,960	-296,272	2,337,508	3,630,891	4,034,911	7,963,463	9,225,923	11,871,200	9,732,510	7,934,810	6,339,100
Total assets	US$ in thousands	29,747,000	30,351,000	28,922,000	28,681,000	28,349,000	28,428,000	27,091,000	27,710,000	28,461,000	30,071,000	28,783,400	30,301,400	30,814,000	31,565,500	26,568,400	25,415,200	24,145,000	24,288,700	22,855,000	22,489,100
Operating ROA		-22.50%	-20.34%	-20.64%	-20.15%	-21.70%	-22.38%	-23.75%	-23.44%	-22.32%	-0.92%	-1.03%	7.71%	11.78%	12.78%	29.97%	36.30%	49.17%	40.07%	34.72%	28.19%

February 3, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $-6,693,000K ÷ $29,747,000K
= -22.50%

The operating return on assets (operating ROA) for The TJX Companies Inc has displayed significant fluctuations over the past several reporting periods. The trend shows a decline in profitability during the latest quarters, with negative values indicating that the company's operating income generated from its assets has been less than the asset base.

From May 2, 2020, to Jan 29, 2022, the company experienced a prolonged period of negative operating ROA, suggesting operational inefficiencies or challenges impacting its ability to generate profits from its asset base. The lowest operating ROA was recorded in the quarter ending Jul 30, 2022, at -23.75%.

However, a notable turnaround began in the quarter ending Jan 30, 2021, where the operating ROA turned positive and increased steadily over the following quarters. The company's positive operating ROA in recent periods, culminating in a peak of 49.17% in the quarter ending Feb 1, 2020, indicates improved operational performance and efficiency in utilizing its assets to generate income.

Overall, the historic operating ROA trend for The TJX Companies Inc reflects periods of both challenges and successes in effectively leveraging its assets to generate operating profits. Monitoring this metric in conjunction with other financial indicators can provide a comprehensive view of the company's financial health and operational efficiency.