The TJX Companies Inc (TJX)
Return on total capital
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 6,302,000 | 6,049,000 | 6,046,000 | 5,078,000 | 4,727,000 |
| Long-term debt | US$ in thousands | — | 2,862,000 | — | — | 2,859,000 |
| Total stockholders’ equity | US$ in thousands | 8,393,000 | 7,302,000 | 7,302,000 | 6,364,000 | 6,364,000 |
| Return on total capital | 75.09% | 59.51% | 82.80% | 79.79% | 51.25% |
January 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $6,302,000K ÷ ($—K + $8,393,000K)
= 75.09%
The Return on Total Capital (ROTC) of The TJX Companies Inc has shown a fluctuating trend over the analyzed periods. In January 28, 2023, the ROTC was reported at 51.25%, indicating that the company generated a profit of 51.25 cents for every dollar of capital invested. Subsequently, the ROTC significantly increased to 79.79% by January 31, 2023, and continued to rise to 82.80% by January 31, 2024, reaching its peak during that period.
However, the ROTC decreased to 59.51% by February 3, 2024, indicating a decline in capital efficiency compared to the previous period. Nonetheless, the company managed to improve its ROTC to 75.09% by January 31, 2025.
Overall, The TJX Companies Inc has demonstrated the ability to effectively utilize its capital to generate returns for its stakeholders, with fluctuations in ROTC reflecting varying levels of capital efficiency and profitability over the analyzed periods.
Peer comparison
Jan 31, 2025