The TJX Companies Inc (TJX)
Interest coverage
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 6,049,000 | 4,727,000 | 4,521,000 | 288,000 | 4,467,580 |
| Interest expense | US$ in thousands | 82,000 | 91,000 | 123,000 | 199,000 | 61,400 |
| Interest coverage | 73.77 | 51.95 | 36.76 | 1.45 | 72.76 |
February 3, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $6,049,000K ÷ $82,000K
= 73.77
The interest coverage ratio for The TJX Companies Inc has demonstrated varying levels over the past five years. In the most recent fiscal year ending February 3, 2024, the interest coverage ratio stood at 73.77, indicating that the company earned 73.77 times the amount needed to cover its interest expenses. This represents a significant improvement compared to the previous year, where the ratio was 51.95.
Looking back further, the interest coverage ratio for TJX was 36.76 in January 29, 2022, and 1.45 in January 30, 2021, which was notably low and suggestive of potential financial risk due to difficulties in covering interest payments. However, in February 1, 2020, the ratio was again strong at 72.76.
The significant fluctuations in the interest coverage ratio suggest varying levels of financial stability and ability to service debt obligations over the years. High interest coverage ratios imply that the company is more capable of servicing its debt, while low ratios indicate a higher risk of potential financial distress. It is important for investors and stakeholders to monitor this ratio closely to assess the company's financial health and ability to manage its debt effectively.
Peer comparison
Feb 3, 2024