Stock Analysis on Net

TJX Cos. Inc. (NYSE:TJX)

Analysis of Operating Leases

Microsoft Excel

An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.


Adjustments to Financial Statements for Operating Leases

TJX Cos. Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Feb 1, 2025 Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020
Adjustment to Total Assets
Total assets (as reported) 31,749 29,747 28,349 28,461 30,814 24,145
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1
Total assets (adjusted) 31,749 29,747 28,349 28,461 30,814 24,145
Adjustment to Total Debt
Total debt (as reported) 2,866 2,862 3,359 3,355 6,083 2,237
Add: Operating lease liability (before adoption of FASB Topic 842)2
Add: Current portion of operating lease liabilities 1,636 1,620 1,610 1,577 1,678 1,411
Add: Long-term operating lease liabilities, excluding current portion 8,276 8,060 7,775 7,576 7,743 7,817
Total debt (adjusted) 12,778 12,542 12,744 12,507 15,503 11,464

Based on: 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01).

1, 2 Equal to total present value of future operating lease payments.


TJX Cos. Inc., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios for Operating Leases (Summary)

TJX Cos. Inc., adjusted financial ratios

Microsoft Excel
Feb 1, 2025 Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020
Total Asset Turnover1
Reported total asset turnover 1.78 1.82 1.76 1.71 1.04 1.73
Adjusted total asset turnover 1.78 1.82 1.76 1.71 1.04 1.73
Debt to Equity2
Reported debt to equity 0.34 0.39 0.53 0.56 1.04 0.38
Adjusted debt to equity 1.52 1.72 2.00 2.08 2.66 1.93
Return on Assets3 (ROA)
Reported ROA 15.32% 15.04% 12.34% 11.53% 0.29% 13.55%
Adjusted ROA 15.32% 15.04% 12.34% 11.53% 0.29% 13.55%

Based on: 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. TJX Cos. Inc. adjusted total asset turnover ratio improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025 not reaching 2023 level.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. TJX Cos. Inc. adjusted debt to equity ratio improved from 2023 to 2024 and from 2024 to 2025.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. TJX Cos. Inc. adjusted ROA improved from 2023 to 2024 and from 2024 to 2025.

TJX Cos. Inc., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel
Feb 1, 2025 Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020
As Reported
Selected Financial Data (US$ in millions)
Net sales 56,360 54,217 49,936 48,550 32,137 41,717
Total assets 31,749 29,747 28,349 28,461 30,814 24,145
Activity Ratio
Total asset turnover1 1.78 1.82 1.76 1.71 1.04 1.73
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net sales 56,360 54,217 49,936 48,550 32,137 41,717
Adjusted total assets 31,749 29,747 28,349 28,461 30,814 24,145
Activity Ratio
Adjusted total asset turnover2 1.78 1.82 1.76 1.71 1.04 1.73

Based on: 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01).

2025 Calculations

1 Total asset turnover = Net sales ÷ Total assets
= 56,360 ÷ 31,749 = 1.78

2 Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 56,360 ÷ 31,749 = 1.78

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. TJX Cos. Inc. adjusted total asset turnover ratio improved from 2023 to 2024 but then slightly deteriorated from 2024 to 2025 not reaching 2023 level.

Adjusted Debt to Equity

Microsoft Excel
Feb 1, 2025 Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020
As Reported
Selected Financial Data (US$ in millions)
Total debt 2,866 2,862 3,359 3,355 6,083 2,237
Shareholders’ equity 8,393 7,302 6,364 6,003 5,833 5,948
Solvency Ratio
Debt to equity1 0.34 0.39 0.53 0.56 1.04 0.38
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 12,778 12,542 12,744 12,507 15,503 11,464
Shareholders’ equity 8,393 7,302 6,364 6,003 5,833 5,948
Solvency Ratio
Adjusted debt to equity2 1.52 1.72 2.00 2.08 2.66 1.93

Based on: 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01).

2025 Calculations

1 Debt to equity = Total debt ÷ Shareholders’ equity
= 2,866 ÷ 8,393 = 0.34

2 Adjusted debt to equity = Adjusted total debt ÷ Shareholders’ equity
= 12,778 ÷ 8,393 = 1.52

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. TJX Cos. Inc. adjusted debt-to-equity ratio improved from 2023 to 2024 and from 2024 to 2025.

Adjusted Return on Assets (ROA)

Microsoft Excel
Feb 1, 2025 Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021 Feb 1, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income 4,864 4,474 3,498 3,283 90 3,272
Total assets 31,749 29,747 28,349 28,461 30,814 24,145
Profitability Ratio
ROA1 15.32% 15.04% 12.34% 11.53% 0.29% 13.55%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net income 4,864 4,474 3,498 3,283 90 3,272
Adjusted total assets 31,749 29,747 28,349 28,461 30,814 24,145
Profitability Ratio
Adjusted ROA2 15.32% 15.04% 12.34% 11.53% 0.29% 13.55%

Based on: 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01).

2025 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 4,864 ÷ 31,749 = 15.32%

2 Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 4,864 ÷ 31,749 = 15.32%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. TJX Cos. Inc. adjusted ROA improved from 2023 to 2024 and from 2024 to 2025.