The TJX Companies Inc (TJX)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 29,747,000 | 30,351,000 | 28,922,000 | 28,681,000 | 28,349,000 | 28,428,000 | 27,091,000 | 27,710,000 | 28,461,000 | 30,071,000 | 28,783,400 | 30,301,400 | 30,814,000 | 31,565,500 | 26,568,400 | 25,415,200 | 24,145,000 | 24,288,700 | 22,855,000 | 22,489,100 |
| 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 |
| Financial leverage ratio | 4.07 | 4.44 | 4.38 | 4.47 | 4.45 | 5.02 | 5.02 | 4.95 | 4.74 | 4.67 | 4.49 | 4.94 | 5.28 | 5.67 | 5.70 | 5.36 | 4.06 | 4.38 | 4.31 | 4.38 |
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 fluctuated over the past several quarters, ranging from 4.06 to 5.70. This ratio indicates that the company's level of financial leverage, or the extent to which it is financed by debt rather than equity, has been relatively high. A higher leverage ratio suggests that the company relies more on debt to finance its operations and growth, which can potentially lead to increased financial risk.
The trend in the financial leverage ratio shows some variability, with occasional peaks and troughs. It reached its highest point of 5.70 in the second quarter of 2020 and has since shown some decrease, with the most recent value standing at 4.07 in February 2024. This decline may indicate a reduction in the company's reliance on debt financing or an increase in equity financing, which can be viewed positively by investors and creditors.
Overall, the analysis of The TJX Companies Inc's financial leverage ratio suggests that the company has been maintaining a relatively high level of debt in its capital structure. Investors and stakeholders should continue to monitor this ratio to assess the company's ability to manage its debt obligations effectively and sustain its financial health.
Peer comparison
Feb 3, 2024