The TJX Companies Inc (TJX)
Financial leverage ratio
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 31,749,000 | 29,747,000 | 29,747,000 | 28,349,000 | 28,349,000 |
| Total stockholders’ equity | US$ in thousands | 8,393,000 | 7,302,000 | 7,302,000 | 6,364,000 | 6,364,000 |
| Financial leverage ratio | 3.78 | 4.07 | 4.07 | 4.45 | 4.45 |
January 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $31,749,000K ÷ $8,393,000K
= 3.78
The financial leverage ratio for The TJX Companies Inc has shown a gradual decline over the past few years, decreasing from 4.45 in January 2023 to 3.78 in January 2025. This indicates that the company has been reducing its reliance on debt to finance its operations and investments. A lower financial leverage ratio suggests a more conservative capital structure, which can be seen as a positive sign for investors as it reduces the company's financial risk and vulnerability to economic downturns. The downward trend in the leverage ratio may imply that TJX is managing its debt levels effectively and maintaining a healthy balance between debt and equity in its capital structure.
Peer comparison
Jan 31, 2025