The TJX Companies Inc (TJX)
Solvency ratios
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.10 | 0.10 | 0.12 | 0.17 | 0.09 |
| Debt-to-capital ratio | 0.28 | 0.31 | 0.36 | 0.48 | 0.27 |
| Debt-to-equity ratio | 0.39 | 0.45 | 0.56 | 0.91 | 0.37 |
| Financial leverage ratio | 4.07 | 4.45 | 4.74 | 5.28 | 4.06 |
The solvency ratios of The TJX Companies Inc indicate the company's ability to meet its financial obligations over the years. The debt-to-assets ratio has remained relatively stable at around 0.10 in the last three years, suggesting that the company has a low level of debt compared to its total assets.
Similarly, the debt-to-capital ratio has shown a downward trend from 0.48 in 2021 to 0.28 in 2024, indicating that the proportion of debt in the company's capital structure has decreased. This is a positive sign as it shows a lower reliance on debt financing.
The debt-to-equity ratio has fluctuated over the years, with a significant decrease from 0.91 in 2021 to 0.39 in 2024. This implies that the company has reduced its debt relative to its equity, which could potentially lower financial risk.
The financial leverage ratio, which indicates the company's reliance on debt to finance its assets, has also shown a decreasing trend over the years. This decrease suggests that the company has been able to manage its debt levels more efficiently, resulting in a lower financial risk.
Overall, the solvency ratios of The TJX Companies Inc demonstrate a consistent improvement in managing debt and maintaining a healthy financial position, which is a positive indicator of the company's financial stability and ability to meet its long-term obligations.
Coverage ratios
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 73.77 | 51.95 | 36.76 | 1.45 | 72.76 |
The interest coverage ratio for The TJX Companies Inc has seen fluctuations over the past five years. The ratio stood at 73.77 in February 3, 2024, indicating the company's ability to cover its interest expenses 73.77 times over with its operating income. This represents a significant increase compared to the previous year, where the interest coverage was 51.95 on January 28, 2023, suggesting an improving financial position.
Looking further back, the interest coverage ratio was 36.76 on January 29, 2022, showing a substantial decrease from the previous year. In January 30, 2021, the ratio was 1.45, indicating a concerning situation where the company's operating income may not have been sufficient to cover its interest expenses.
However, there was a noteworthy recovery in the interest coverage ratio on February 1, 2020, with a strong ratio of 72.76. This suggests that the company's operating performance improved significantly, allowing it to cover its interest obligations comfortably.
In summary, The TJX Companies Inc has shown fluctuations in its interest coverage ratio over the past five years, with a notable improvement in the most recent year. It is essential for investors and stakeholders to monitor this ratio closely to assess the company's ability to meet its interest payments in the future.