The TJX Companies Inc (TJX)

Pretax margin

		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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	5,967,000	5,463,000	5,233,000	4,992,000	4,636,000	4,540,290	4,560,330	4,528,660	4,398,006	3,663,061	3,300,011	2,153,662	89,466	907,401	1,013,531	2,126,860	4,406,192	4,258,492	4,182,892	4,154,139
Revenue (ttm)	US$ in thousands	54,112,000	52,435,200	51,336,500	50,421,500	50,045,000	49,201,000	49,566,600	49,558,400	48,238,600	45,096,600	42,682,000	37,514,780	31,836,970	33,400,270	33,734,270	36,848,290	41,716,980	40,637,780	40,012,240	39,561,760
Pretax margin		11.03%	10.42%	10.19%	9.90%	9.26%	9.23%	9.20%	9.14%	9.12%	8.12%	7.73%	5.74%	0.28%	2.72%	3.00%	5.77%	10.56%	10.48%	10.45%	10.50%

February 3, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $5,967,000K ÷ $54,112,000K
= 11.03%

The pretax margin of The TJX Companies Inc has demonstrated fluctuating trends over the past few periods. From February 3, 2024, to October 30, 2021, the pretax margin hovered in the range of 9.12% to 11.03%, indicating a relatively stable profitability level. However, a notable decline was observed in the margin in July 31, 2021, dropping to 7.73%, which could be a cause for concern. Subsequently, the margin experienced a significant decrease to 5.74% on May 1, 2021, before plunging drastically to 0.28% on January 30, 2021, signaling a drastic downturn in profitability.

However, there was a remarkable recovery in the pretax margin in the subsequent periods, particularly from February 1, 2020, onwards, where the margin consistently improved, reaching 11.03% by February 3, 2024. The substantial improvement in profitability post the low point in January 30, 2021, suggests that the company implemented effective strategies to enhance operational efficiency and profitability.

Overall, while there were fluctuations in the pretax margin, The TJX Companies Inc managed to recover from the significant decline in profitability witnessed in early 2021, showcasing resilience and adaptability in improving its financial performance in subsequent periods.