The TJX Companies Inc (TJX)
Interest coverage
| Jan 31, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | Jan 29, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 6,302,000 | 6,297,000 | 6,152,000 | 3,700,000 | 3,649,000 | 537,000 | 160,000 | 123,000 | 192,920 | -1,343,510 | -1,156,510 | -915,672 | -1,177,992 | 550,178 | 65,738 | 2,156,580 | -1,957,170 | 520,800 | -1,249,700 | -1,189,140 |
| Interest expense (ttm) | US$ in thousands | 101,000 | 113,000 | 112,000 | 51,000 | 51,000 | -41,000 | -38,000 | -34,000 | -33,000 | 25,000 | 23,000 | 81,000 | 72,007 | 63,014 | 61,799 | 61,852 | 71,898 | 81,565 | 83,454 | 91,062 |
| Interest coverage | 62.40 | 55.73 | 54.93 | 72.55 | 71.55 | — | — | — | — | -53.74 | -50.28 | -11.30 | -16.36 | 8.73 | 1.06 | 34.87 | -27.22 | 6.39 | -14.97 | -13.06 |
January 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $6,302,000K ÷ $101,000K
= 62.40
The interest coverage ratio measures a company's ability to cover its interest expenses with its earnings. A higher ratio indicates a stronger ability to pay interest obligations.
Based on the provided data for The TJX Companies Inc:
- The interest coverage ratio fluctuates significantly over the given period, showing both positive and negative values.
- For the periods January 29, 2022, January 31, 2022, July 30, 2022, and January 28, 2023, the company had negative interest coverage ratios, indicating earnings were insufficient to cover interest expenses.
- On the other hand, there were periods where the interest coverage ratio was positive, such as April 30, 2022, July 31, 2022, October 29, 2022, and October 31, 2022, suggesting that the company had the ability to cover its interest costs.
- Notably, the interest coverage ratio improved significantly in the periods from February 3, 2024, onwards, reaching relatively high levels, indicating a strong ability to service its interest obligations with earnings.
In conclusion, the interest coverage ratios for The TJX Companies Inc have varied significantly over the analyzed periods, showing periods of both strength and weakness in the company's ability to cover its interest expenses. It is important to monitor this ratio over time to assess the company's financial health and ability to meet its debt obligations.
Peer comparison
Jan 31, 2025