The TJX Companies Inc (TJX)

Debt-to-equity ratio

		Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Long-term debt	US$ in thousands	2,862,000	2,900,000	2,861,000	2,860,000	2,859,000	2,858,000	2,857,000	3,356,000	3,355,000	3,353,870	3,352,890	5,334,860	5,300,000	5,447,210	5,445,320	7,192,410	2,200,000	2,235,870	2,235,120	2,234,370
Total stockholders’ equity	US$ in thousands	7,302,000	6,833,000	6,608,000	6,422,000	6,364,000	5,665,000	5,397,000	5,595,000	6,003,000	6,444,770	6,406,380	6,139,210	5,833,000	5,566,760	4,660,570	4,739,220	5,948,000	5,542,530	5,302,610	5,131,900
Debt-to-equity ratio		0.39	0.42	0.43	0.45	0.45	0.50	0.53	0.60	0.56	0.52	0.52	0.87	0.91	0.98	1.17	1.52	0.37	0.40	0.42	0.44

February 3, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,862,000K ÷ $7,302,000K
= 0.39

The debt-to-equity ratio of The TJX Companies Inc has fluctuated over the past few years, suggesting varying levels of debt relative to equity in the company's capital structure. The ratio has generally remained within a range of 0.39 to 1.52 during the period examined.

From August 2019 to April 2022, the debt-to-equity ratio increased steadily from 0.37 to 0.60, indicating a higher proportion of debt compared to equity in the company's financing mix. This rise could suggest increased borrowing or a decrease in equity over this period.

During the following quarters from July 2022 to October 2023, the ratio fluctuated between 0.50 and 0.45, indicating a slight reduction in the level of debt relative to equity compared to the peak in April 2022. This could suggest management efforts to stabilize the debt levels or increase equity in the company.

It is worth noting that the significant spike in the debt-to-equity ratio to 1.52 in February 2020 may raise concerns about the company's leverage and ability to cover its debt obligations with available equity. However, this spike was followed by a decreasing trend in the ratio, indicating potential efforts by the company to address its debt levels.

Overall, monitoring changes in The TJX Companies Inc's debt-to-equity ratio is crucial for assessing its financial health and risk management practices, as it provides insights into the company's capital structure, financial leverage, and potential solvency issues.