The TJX Companies Inc (TJX)

Return on equity (ROE)

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Net income	US$ in thousands	4,474,000	3,498,000	3,283,000	90,000	3,272,190
Total stockholders’ equity	US$ in thousands	7,302,000	6,364,000	6,003,000	5,833,000	5,948,000
ROE		61.27%	54.97%	54.69%	1.54%	55.01%

February 3, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $4,474,000K ÷ $7,302,000K
= 61.27%

The return on equity (ROE) of The TJX Companies Inc has shown significant fluctuations over the past five years. The ROE was relatively stable at around 55% in 2020 and 2021, indicating that the company was generating a strong return for shareholders relative to its equity base. However, there was a notable increase in ROE to 61.27% in 2022, reflecting an even stronger performance in utilizing shareholder equity to generate profits.

The significant increase in ROE in 2022 suggests that the company has managed to improve its efficiency in generating profits from its equity base. This could be attributed to various factors such as operational improvements, cost management, or revenue growth strategies.

It is important to note the sharp decline in ROE to 1.54% in 2021, which indicates a significant decrease in the company's profitability relative to its equity base. This could be a result of various factors such as economic downturn, increased expenses, or lower sales volume.

Overall, the trend in ROE for The TJX Companies Inc over the past five years showcases both positive and negative fluctuations, indicating that the company's performance in generating returns for its shareholders has been volatile. Investors and stakeholders should closely monitor future ROE figures to assess the company's profitability and efficiency in utilizing shareholder equity.