The TJX Companies Inc (TJX)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-6,693,000	-6,173,430	-5,969,592	-5,777,852	-6,151,992	-6,362,712	-6,433,490	-6,495,930	-6,353,750	-275,960	-296,272	2,337,508	3,630,891	4,034,911	7,963,463	9,225,923	11,871,200	9,732,510	7,934,810	6,339,100
Interest expense (ttm)	US$ in thousands	-116,000	-96,000	-34,000	15,007	70,792	71,845	71,519	89,173	116,288	142,398	174,608	203,283	188,983	144,873	95,248	40,809	10,026	8,478	8,407	8,539
Interest coverage		—	—	—	-385.01	-86.90	-88.56	-89.95	-72.85	-54.64	-1.94	-1.70	11.50	19.21	27.85	83.61	226.08	1,184.04	1,147.97	943.83	742.37

February 3, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-6,693,000K ÷ $-116,000K
= —

Interest coverage ratio is a measure of a company's ability to pay its interest expenses on outstanding debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expenses.

Looking at the historical data for The TJX Companies Inc, we see fluctuations in the interest coverage ratio over the past few years. The interest coverage ratio was negative in the first half of 2023, indicating that the company's earnings were not sufficient to cover its interest expenses during that period.

However, the interest coverage ratio improved significantly in the latter half of 2023 and into 2024, reaching levels well above 1, which suggests that the company's earnings were more than adequate to cover its interest payments. In particular, the ratio spiked to very high levels in late 2023 and early 2024, indicating a substantial increase in earnings relative to interest expenses during those periods.

Overall, the interest coverage ratio for The TJX Companies Inc has shown volatility but has generally trended towards healthier levels more recently, signaling improved financial health and ability to meet its interest obligations. It is important for investors and lenders to monitor this ratio to assess the company's ability to manage its debt and gauge its overall financial stability.