The TJX Companies Inc (TJX)
Solvency ratios
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.10 | 0.00 | 0.00 | 0.10 |
| Debt-to-capital ratio | 0.00 | 0.28 | 0.00 | 0.00 | 0.31 |
| Debt-to-equity ratio | 0.00 | 0.39 | 0.00 | 0.00 | 0.45 |
| Financial leverage ratio | 3.78 | 4.07 | 4.07 | 4.45 | 4.45 |
The solvency ratios of The TJX Companies Inc indicate a strong financial position with consistently low levels of debt in relation to its assets, capital, and equity.
The Debt-to-assets ratio has remained consistently low over the years, ranging from 0.00 to 0.10. This suggests that the company has minimal debt in comparison to its total assets, indicating a low level of financial risk.
Similarly, the Debt-to-capital ratio has also shown minimal levels of debt relative to its capital structure, with ratios ranging from 0.00 to 0.31. This indicates that the company has a strong ability to cover its debts with its capital resources.
Furthermore, the Debt-to-equity ratio has consistently shown low levels of debt in relation to equity, with ratios ranging from 0.00 to 0.45. This indicates that the company relies more on equity financing rather than debt financing to fund its operations.
The Financial leverage ratio has also decreased over the years from 4.45 to 3.78, indicating a decreasing reliance on debt to finance its operations and a trend towards stronger financial stability.
Overall, based on these solvency ratios, The TJX Companies Inc appears to have a solid financial position with low levels of debt and a strong ability to meet its financial obligations.
Coverage ratios
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Interest coverage | 34.82 | 73.77 | 76.53 | 60.45 | 51.95 |
The interest coverage ratio of The TJX Companies Inc has exhibited a generally positive trend over the years, reflecting the company's ability to comfortably meet its interest obligations. Starting from 51.95 in January 28, 2023, the ratio improved to 60.45 by January 31, 2023, and continued its upward trajectory to reach 76.53 by January 31, 2024, indicating a strengthening financial position.
However, the interest coverage ratio experienced a slight decline to 73.77 by February 3, 2024, but remained at a relatively healthy level. Subsequently, by January 31, 2025, the ratio decreased to 34.82, signaling a notable drop compared to the previous years.
Overall, despite the decrease in the interest coverage ratio in the most recent period, the company has demonstrated a strong ability to generate earnings that can cover its interest expenses comfortably. Monitoring the trend of this ratio will be crucial to assess the company's financial health and debt servicing capacity in the future.