TJX Cos. Inc. (NYSE:TJX)

Total Asset Turnover

The reported total asset turnover ratio declined sharply from 1.73 in early 2020 to a low of 1.04 in early 2021, reflecting decreased efficiency in asset utilization that year. Subsequently, the ratio improved markedly, recovering to levels above 1.7 from 2022 onward, and reaching a peak of 1.82 in early 2024 before slightly decreasing to 1.78 by early 2025. Adjusted figures follow a similar pattern with marginally higher values throughout, indicating consistent asset turnover trends after adjustments.

Debt to Equity Ratio

Reported debt to equity ratio experienced a significant increase from 0.38 in early 2020 to 1.04 in early 2021, indicating elevated leverage. Following this spike, the ratio steadily declined over subsequent years, reaching a low of 0.34 by early 2025, suggesting progressive deleveraging or equity growth. The adjusted debt to equity ratio remained consistently higher than the reported figures but demonstrated the same overall trend: a peak in 2021 followed by a steady decline to 1.39 in 2025.

Debt to Capital Ratio

The reported debt to capital ratio mirrored the debt to equity pattern: an increase to 0.51 in early 2021 followed by a steady decline to 0.25 in 2025. Adjusted ratios were higher by a consistent margin but showed a similar decline from a peak of 0.71 in early 2021 to 0.58 in early 2025, indicating a reduction in the proportion of debt within the total capital structure over time.

Financial Leverage

Reported financial leverage rose from 4.06 in early 2020 to 5.28 in early 2021, before gradually decreasing to 3.78 in early 2025, suggesting a temporary increase in leverage followed by a normalization period. Adjusted financial leverage follows the same trajectory with slightly lower values throughout the period.

Net Profit Margin

Reported net profit margin declined drastically to 0.28% in early 2021 from 7.84% in 2020, reflecting a significant contraction in profitability during this period. Profitability recovered substantially thereafter, increasing to 8.63% by early 2025. Adjusted net profit margins show a comparable trend, with a near 0% margin in 2021 and recovery to 8.63% by 2025, indicating resilience and improved profitability post-2021.

Return on Equity (ROE)

Reported ROE dropped sharply from an exceptionally high 55.01% in early 2020 to 1.55% in early 2021, indicating severe pressures on shareholder returns. This was followed by a strong recovery with ROE exceeding 50% in the period from 2022 to 2025, peaking at 61.27% in early 2024 before a slight decline. Adjusted ROE figures remain lower but exhibit the same pattern of sharp decline in 2021 and substantial recovery thereafter.

Return on Assets (ROA)

Reported ROA similarly fell from 13.55% in early 2020 to 0.29% in early 2021, then rebounded steadily to 15.32% by early 2025, surpassing pre-2021 levels. Adjusted ROA maintained a similar course, rebounding fully after 2021 and exhibiting consistent improvement into 2025.

Overall, the data reveals a pronounced impact during early 2021 across all key financial metrics, characterized by increased leverage and sharply diminished profitability and efficiency ratios. Following that period, there is a clear trend of recovery and strengthening financial performance, with improvements in asset turnover, deleveraging efforts, and enhanced profitability and returns through to early 2025. Adjusted figures consistently mirror these trends, though typically present a more conservative view of leverage and profitability.

Net Sales

Net sales exhibited a significant decline from 41,717 million USD in 2020 to 32,137 million USD in 2021, indicating a notable downturn in revenue during that period. However, starting in 2022, a robust recovery is observed with net sales increasing to 48,550 million USD and continuing an upward trend to reach 56,360 million USD by 2025. This suggests a strong recovery and sustained growth in sales over the latter years.

Total Assets

Total assets showed a general upward trend, increasing from 24,145 million USD in 2020 to a peak of 30,814 million USD in 2021. Following this peak, a slight reduction occurred over the next two years, settling around 28,349 million USD in 2023. From 2024 onwards, total assets resumed growth, reaching 31,749 million USD by 2025. The fluctuations indicate a period of asset expansion followed by optimization or divestment, then renewed growth.

Reported Total Asset Turnover

The reported total asset turnover ratio saw a marked decrease from 1.73 in 2020 to 1.04 in 2021, reflecting reduced efficiency in generating sales from assets during this period. Subsequently, the ratio rebounded sharply to 1.71 in 2022 and continued to improve, peaking at 1.82 in 2024 before slightly declining to 1.78 in 2025. This pattern corresponds with the sales and asset trends, demonstrating increased operational efficiency after 2021.

Adjusted Net Sales

Adjusted net sales closely mirror the pattern of net sales, starting at 41,768 million USD in 2020 and dropping to 32,212 million USD in 2021. A significant recovery follows, with adjusted net sales rising steadily to 56,411 million USD by 2025. The close alignment with net sales data suggests the adjustments have minimal impact on the overall sales trend.

Adjusted Total Assets

Adjusted total assets exhibited a similar trajectory to reported total assets, increasing from 24,133 million USD in 2020 to 30,686 million USD in 2021, then declining to 28,191 million USD in 2023, before rising again to 31,601 million USD in 2025. This consistency indicates that adjustments do not markedly alter the overall asset trend.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio followed the same trend as the reported figure, decreasing substantially in 2021 to 1.05, then improving to 1.72 in 2022 and peaking at 1.83 in 2024. A slight decrease to 1.79 in 2025 is observed. The similarity between reported and adjusted ratios reinforces the assessment of improved asset utilization efficiency after 2021.

The financial data reveals several notable trends in the company’s capital structure and leverage over the observed periods.

Total Debt

Total debt showed a significant spike from 2,237 million USD in early 2020 to 6,083 million USD in early 2021, after which it steadily decreased to 2,866 million USD by early 2025. This suggests a temporary increase in borrowing or liabilities around 2021, followed by a gradual deleveraging process.

Shareholders’ Equity

Shareholders' equity experienced a generally upward trend throughout the period. Starting at 5,948 million USD in 2020, it slightly declined in 2021 to 5,833 million USD, then consistently increased to reach 8,393 million USD by 2025. This indicates an improvement in the company’s net asset base and potential retained earnings growth or capital injections.

Reported Debt to Equity Ratio

The reported debt to equity ratio mirrored the total debt trend, rising sharply from 0.38 in 2020 to 1.04 in 2021, reflecting increased leverage, then declining steadily to 0.34 by 2025. This decline suggests strengthening equity relative to debt and a reduction in leverage risk.

Adjusted Total Debt

Adjusted total debt started at a substantially higher base than total debt at 11,464 million USD in 2020, peaking at 15,503 million USD in 2021. It then declined and stabilized around 12,500 to 12,800 million USD in subsequent years. The adjustment likely incorporates off-balance sheet or other liabilities, indicating a more comprehensive view of indebtedness.

Adjusted Shareholders’ Equity

Adjusted shareholders’ equity showed steady growth from 6,579 million USD in 2020 to 9,225 million USD in 2025. This increase, alongside adjusted debt, highlights an improving equity position even when considering adjustments.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio was highest in 2021 at 2.45, reflecting the peak in adjusted debt, before steadily improving to 1.39 by 2025. Despite remaining above 1.0 throughout, the ratio's downward trajectory indicates an improving balance between adjusted liabilities and equity.

In summary, the company experienced a notable increase in debt levels around 2021, reflected in both reported and adjusted figures, possibly indicating a response to specific financing needs or external conditions at that time. Following this peak, there has been a consistent trend toward strengthening equity and reducing leverage ratios, both reported and adjusted. This points to a focus on improving financial stability and decreasing risk over the latter part of the evaluation period.

Total Debt

The total debt experienced a significant increase from 2,237 million USD in early 2020 to a peak of 6,083 million USD in early 2021. Following this peak, the debt declined sharply to 3,355 million USD in early 2022 and remained relatively stable around this level through early 2023. From then on, total debt further decreased to 2,862 million USD by early 2024 and remained nearly unchanged at 2,866 million USD in early 2025.

Total Capital

Total capital showed an upward trend from 8,185 million USD in early 2020 to 11,915 million USD in early 2021. After this peak, it declined to 9,358 million USD in early 2022, then gradually increased to 9,723 million USD by early 2023. Continued growth was observed over the following two years, reaching 10,164 million USD in early 2024 and 11,259 million USD by early 2025.

Reported Debt to Capital Ratio

The reported debt to capital ratio mirrored the movement of total debt and capital. It increased markedly from 0.27 in early 2020 to 0.51 in early 2021. Subsequently, the ratio decreased to 0.36 in early 2022 and maintained a slight downward trend to 0.35 in early 2023. It further declined to 0.28 in early 2024 and dropped slightly more to 0.25 by early 2025, indicating improved leverage over the last few years.

Adjusted Total Debt

The adjusted total debt remained at elevated levels throughout the period relative to the reported total debt. It rose from 11,464 million USD in early 2020 to a peak of 15,503 million USD in early 2021, then fell to 12,507 million USD by early 2022. Slight fluctuations occurred around this level through 2023. By early 2024 and 2025, adjusted debt values were relatively stable at approximately 12,542 million USD and 12,778 million USD, respectively.

Adjusted Total Capital

Adjusted total capital followed a pattern similar to adjusted total debt. It increased from 18,044 million USD in early 2020 to 21,822 million USD in early 2021, then decreased to 19,054 million USD in early 2022. Moderate growth was seen over the next years, with values rising to 19,798 million USD in early 2023, 20,593 million USD in early 2024, and 22,003 million USD in early 2025.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio remained consistently higher than the reported ratio, reflecting the broader debt and capital measures used. It started at 0.64 in 2020, peaked at 0.71 in 2021, and then gradually decreased over the following years, reaching 0.66 in 2022 and 0.64 in 2023. The downward trend continued to 0.61 in 2024 and further to 0.58 in 2025. This decline suggests a steady improvement in leverage when considering the adjusted financial measures.

Overall Trends and Insights

A pronounced spike in both debt levels and capital occurred in early 2021, followed by a notable reduction in debt and a partial recovery of capital in subsequent years. The leverage ratios—both reported and adjusted—peaked in 2021 and have since trended downward, indicating a reduction in financial leverage and potentially stronger capital structure management. The stability in debt and capital figures in the later years points to a period of consolidation and controlled financial risk exposure.

The financial data reveals several key trends concerning the company's asset base, equity, and financial leverage over the six-year period from early 2020 to early 2025.

Total Assets

The total assets increased steadily from $24,145 million in early 2020 to $31,749 million in early 2025. There was a notable rise between 2020 and 2021, followed by a slight decline in 2022 and 2023, and then a resumption of growth in the subsequent years.

Shareholders' Equity

Shareholders' equity showed a consistent upward trend, beginning at $5,948 million in 2020 and increasing to $8,393 million by 2025. The equity base expanded each year without interruption, reflecting strengthening capitalization.

Reported Financial Leverage (Ratio)

The reported financial leverage ratio peaked at 5.28 in early 2021, indicating higher relative debt levels at that point, before steadily declining to 3.78 by 2025. This decline suggests a gradual reduction in debt reliance relative to equity.

Adjusted Total Assets

Adjusted total assets mirrored the trend seen in total assets, increasing from $24,133 million in 2020 to $31,601 million in 2025. Minor variations between total and adjusted totals are present but follow the same overall pattern of growth.

Adjusted Shareholders' Equity

Adjusted shareholders' equity showed a continuous increase from $6,579 million in 2020 to $9,225 million in 2025, reflecting a stronger equity base when adjustments are accounted for. The adjusted equity rose at a slightly faster rate compared to the reported equity.

Adjusted Financial Leverage

The adjusted financial leverage ratio also peaked in 2021 at 4.86, then declined steadily to 3.43 by 2025. This trend supports the interpretation of decreasing leverage and improving financial stability over time, more pronounced when adjustments are made.

In summary, the data illustrates a company that is expanding its asset base and strengthening its equity. The peak in leverage ratios in early 2021 suggests a temporary increase in debt usage, followed by a consistent deleveraging process through 2025. The adjustments made to assets and equity hint at conservative financial reporting, with adjusted metrics reinforcing the interpretation of improving financial health and reduced risk exposure over the analyzed period.

The financial data over the reviewed periods reveal several key trends and insights regarding the company's performance.

Net Income and Adjusted Net Income

Net income displayed significant volatility, particularly between 2020 and 2021 when it sharply decreased from $3,272 million to $90 million, before rebounding strongly to $4,864 million by 2025. Adjusted net income followed a similar pattern, showing a steep decline to nearly zero in 2021 and then gradually recovering to $4,866 million by 2025. This suggests an unusual or exceptional event impacting profitability in 2021, after which earnings resumed growth.

Net Sales and Adjusted Net Sales

Net sales experienced a decline in 2021, from $41,717 million in 2020 to $32,137 million, reflecting a substantial drop in revenue. However, from 2021 onwards, sales demonstrated a steady upward trajectory, reaching $56,360 million by 2025, surpassing pre-2021 levels. Adjusted net sales closely track this pattern, highlighting consistency in operational sales performance after adjustments.

Profit Margins

The reported net profit margin contracted sharply to 0.28% in 2021 from 7.84% in 2020, evidencing a major reduction in profitability. Subsequently, margins improved annually, reaching 8.63% in 2025, marking a margin expansion beyond initial levels. Adjusted net profit margin followed a nearly identical trend, dropping to zero in 2021 and then increasing to 8.63% by 2025, signaling recovery and enhancement in operational efficiency or pricing power after adjustment for extraordinary items.

Overall, the data indicate a disturbance in financial performance in the fiscal year 2021 characterized by a sharp decline in revenues and profitability. Thereafter, the company experienced a robust recovery phase with consistent growth in sales and expanding profit margins, ultimately achieving improved profitability and scale by 2025 compared to the initial period. The similarity between reported and adjusted figures, especially in later years, suggests normalized operations and diminishing impact of extraordinary factors over time.

Net Income

The net income exhibited significant fluctuations over the periods under review. There was a drastic decline in the year ending January 30, 2021, dropping from 3,272 million USD to only 90 million USD. However, this was followed by a strong recovery and steady growth in subsequent years, reaching 4,864 million USD by February 1, 2025.

Shareholders’ Equity

Shareholders’ equity showed a generally increasing trend across the years, with minor fluctuations. It slightly decreased in the year ending January 30, 2021 but resumed growth in the following years, rising from 5,948 million USD in February 1, 2020 to 8,393 million USD by February 1, 2025, indicating an overall strengthening of the equity base.

Reported Return on Equity (ROE)

The reported ROE mirrored the net income pattern, experiencing a sharp drop in January 30, 2021 to 1.55% from 55.01% the previous year. Subsequently, it rebounded to levels above 54% and showed an upward trend, peaking at 61.27% in the year ending February 3, 2024, before a slight decline to 57.95% in 2025. These fluctuations reflect variability in profitability relative to equity over time.

Adjusted Net Income

Adjusted net income closely tracked the reported net income trend, showing a near-zero value in January 30, 2021, followed by sustained recovery and growth through the periods. It increased from 3,273 million USD in 2020 to 4,866 million USD in 2025, indicating improved profitability after adjustments.

Adjusted Shareholders’ Equity

Adjusted shareholders’ equity followed a similar increasing path as the reported shareholders’ equity, albeit with consistently higher values. It dropped somewhat in 2021 but then expanded from 6,579 million USD in 2020 to 9,225 million USD in 2025, depicting a solid and enhanced equity position when adjustments are considered.

Adjusted Return on Equity (ROE)

The adjusted ROE also reflected the net income trends, showing an almost zero percentage in January 30, 2021, then rebounding strongly to levels around 50% and above in subsequent years. It peaked at 57.04% in the year ending February 3, 2024, before a moderate decrease to 52.75% in 2025, demonstrating consistent profitability on the adjusted equity basis with some variability.

The financial data exhibits notable fluctuations and an overall positive trend in performance metrics over the observed periods.

Net Income

The net income experienced a dramatic decline in the year ending January 30, 2021, dropping sharply from 3,272 million US dollars to 90 million US dollars. Following this, there was a significant rebound, with net income increasing to 3,283 million US dollars in January 2022 and continuing to grow steadily to 4,864 million US dollars by February 1, 2025.

Total Assets

Total assets showed growth from 24,145 million US dollars in February 2020 to a peak of 30,814 million in January 2021, followed by a slight decrease in the subsequent years, stabilizing around the 28,000 to 29,700 million range. In the latest period ending February 1, 2025, total assets rose again to 31,749 million US dollars, indicating renewed asset growth.

Reported Return on Assets (ROA)

The reported ROA declined drastically in the year ending January 30, 2021, falling from 13.55% to 0.29%, reflecting the sharp decrease in net income despite asset growth. Post this year, the ROA improved consistently, reaching 15.32% by February 1, 2025, signaling enhanced profitability relative to the asset base.

Adjusted Net Income

Adjusted net income mirrored the pattern observed in net income, with a plunge to near zero in January 2021 followed by a strong recovery and progressive increases through subsequent years, culminating at 4,866 million US dollars in February 2025.

Adjusted Total Assets

This metric closely followed the trend of total assets, with a peak in January 2021 followed by a modest decline and eventual increase to 31,601 million US dollars by February 2025, indicating consistent asset management when adjustments are considered.

Adjusted ROA

Adjusted ROA dropped to 0% in January 2021, reflecting the low adjusted net income that year. Thereafter, there was a steady improvement with an increase to 15.4% by February 2025, slightly higher than the reported ROA, suggesting that adjustments may provide a more favorable view of asset profitability over time.

Overall, the data reveals a significant one-year disruption around 2021, likely due to extraordinary circumstances affecting profitability. However, the recovery has been robust with sustained growth in net income and improved returns on assets. The asset base shows moderate fluctuations with an overall upward trajectory in recent years, providing a solid platform for continued financial strength.