The TJX Companies Inc (TJX)
Financial leverage ratio
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 29,747,000 | 28,349,000 | 28,461,000 | 30,814,000 | 24,145,000 |
| Total stockholders’ equity | US$ in thousands | 7,302,000 | 6,364,000 | 6,003,000 | 5,833,000 | 5,948,000 |
| Financial leverage ratio | 4.07 | 4.45 | 4.74 | 5.28 | 4.06 |
February 3, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $29,747,000K ÷ $7,302,000K
= 4.07
The financial leverage ratio of The TJX Companies Inc has shown a decreasing trend over the past five years, declining from 5.28 in January 2021 to 4.07 in February 2024. This indicates that the company has been reducing its reliance on debt to finance its operations and investments, which can lower the overall financial risk associated with high levels of leverage. The decreasing trend in the financial leverage ratio suggests that the company's equity base has been growing relative to its debt obligations. However, it is important to note that a high financial leverage ratio can also indicate that a company is utilizing debt to leverage its returns, potentially leading to higher profitability as well as higher financial risk.
Peer comparison
Feb 3, 2024