The TJX Companies Inc (TJX)

Debt-to-capital ratio

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Long-term debt	US$ in thousands	2,862,000	2,859,000	3,355,000	5,300,000	2,200,000
Total stockholders’ equity	US$ in thousands	7,302,000	6,364,000	6,003,000	5,833,000	5,948,000
Debt-to-capital ratio		0.28	0.31	0.36	0.48	0.27

February 3, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,862,000K ÷ ($2,862,000K + $7,302,000K)
= 0.28

The debt-to-capital ratio of The TJX Companies Inc has been fluctuating over the past five years. In the most recent fiscal year, as of February 3, 2024, the company's debt-to-capital ratio stands at 0.28, indicating that 28% of the company's capital structure is funded by debt. This represents a slight decrease from the previous year when the ratio was 0.31.

Looking further back, the trend indicates a declining pattern in the debt-to-capital ratio from 0.48 in January 30, 2021, to 0.27 in February 1, 2020. This suggests that the company has been reducing its reliance on debt financing in favor of other sources of capital.

A lower debt-to-capital ratio generally signifies a more conservative financial structure and lower financial risk, as the company has less debt relative to its total capital. This can be perceived positively by investors and creditors as it indicates better financial stability and flexibility for the company.

Overall, The TJX Companies Inc's decreasing debt-to-capital ratio trend reflects a strategic approach to managing its capital structure, potentially aiming to strengthen its financial position and ensure long-term sustainability.