The TJX Companies Inc (TJX)

Return on equity (ROE)

		Jan 31, 2025	Nov 2, 2024	Aug 3, 2024	May 4, 2024	Feb 3, 2024	Oct 31, 2023	Oct 28, 2023	Jul 31, 2023	Jul 29, 2023	Apr 30, 2023	Apr 29, 2023	Jan 31, 2023	Jan 28, 2023	Oct 31, 2022	Oct 29, 2022	Jul 31, 2022	Jul 30, 2022	Apr 30, 2022	Jan 31, 2022	Jan 29, 2022
Net income (ttm)	US$ in thousands	4,864,000	4,869,000	4,763,000	4,855,000	4,774,000	4,360,000	4,060,000	3,760,000	3,809,380	3,858,380	4,030,380	4,202,380	3,973,340	3,745,340	3,269,813	3,147,017	3,278,066	3,491,066	3,926,593	3,772,070
Total stockholders’ equity	US$ in thousands	31,749,000	8,173,000	7,782,000	7,502,000	7,302,000	6,833,000	6,833,000	6,608,000	6,608,000	6,422,000	6,422,000	6,364,000	6,364,000	5,664,680	5,665,000	5,396,650	5,397,000	5,595,440	6,003,000	6,003,000
ROE		15.32%	59.57%	61.21%	64.72%	65.38%	63.81%	59.42%	56.90%	57.65%	60.08%	62.76%	66.03%	62.43%	66.12%	57.72%	58.31%	60.74%	62.39%	65.41%	62.84%

January 31, 2025 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $4,864,000K ÷ $31,749,000K
= 15.32%

The return on equity (ROE) for The TJX Companies Inc has shown a fluctuating trend over the analyzed period. Beginning at 62.84% in January 2022, the ROE increased to a peak of 66.12% in October 2022 before experiencing a gradual decline to 56.90% by July 2023. However, there was a slight recovery to 63.81% by October 2023.

Subsequently, the ROE continued to rise, reaching its highest point of 65.38% in February 2024. However, there was a decline in the ROE in the following periods, with a significant drop to 15.32% by January 2025. This sudden decline in ROE could be a cause for concern and may indicate a decrease in profitability relative to the equity invested in the company.

Overall, it is important for stakeholders to monitor the company's ROE closely as it is a key indicator of the efficiency with which the company is utilizing its equity to generate profits. The fluctuating trend in ROE suggests that there may be factors impacting the company's profitability and efficiency that warrant further investigation and analysis.