TJX Cos. Inc. (NYSE:TJX)

Land and buildings

The value of land and buildings exhibits a consistent upward trend throughout the periods analyzed. Starting at $1,426 million in early 2020, the amount increased steadily each year, reaching $2,558 million by early 2025. This represents an approximate 79% increase over the six-year span, indicating ongoing investments or acquisitions in this category.

Leasehold costs and improvements

This category shows a gradual but steady rise over the years. Beginning at $3,541 million in February 2020, values edged up to $4,710 million by February 2025. The increase is relatively modest year-over-year but accumulates to a 33% growth across the analyzed timeframe, suggesting continual enhancements or additions related to leased properties.

Furniture, fixtures and equipment

The assets in this group rise consistently from $6,405 million in early 2020 to $8,714 million in early 2025. This growth of approximately 36% indicates sustained capital expenditure in operational and store-related equipment, reflecting ongoing expansion or refurbishment activities.

Property at cost

The aggregate cost of property shows a steady increase from $11,372 million in 2020 to $15,982 million in 2025. This reflects a gradual accumulation of capital assets, with approximately 40% total growth, driven by increases across the underlying components of land and buildings, leasehold costs, and furniture/equipment.

Accumulated depreciation and amortization

The accumulated depreciation and amortization consistently increase in absolute terms, from -$6,047 million to -$8,636 million. This reflects increasing wear and usage of assets over time, with depreciation expense accumulating in line with asset additions. The steady growth in accumulated depreciation aligns with the asset base expansion.

Net property at cost

The net property at cost, which accounts for accumulated depreciation, initially decreased from $5,325 million in 2020 to $5,036 million in 2021, indicating higher depreciation impact relative to asset additions that year. Following this, a positive trend is observed, increasing to $7,346 million by 2025. This approximately 38% growth over the last four years indicates a strengthening net asset base, supported by ongoing investment exceeding depreciation.

The analysis of the annual property, plant, and equipment (PP&E) data reveals several notable trends over the six-year period from 2020 to 2025.

Average Age Ratio

The average age ratio shows an overall increasing trend from 53.18% in 2020 to a peak of 57.62% in 2022, indicating that the existing assets were aging during this period. Following 2022, the ratio begins to decline gradually, reaching 54.04% by 2025. This suggests a moderate renewal or addition of newer assets relative to the existing asset base after 2022, which lowers the average age ratio.

Estimated Total Useful Life

The total estimated useful life of assets has increased from 13 years in 2020 to 15 years from 2023 onwards. This extension implies either an improvement in asset quality, better maintenance practices, or reassessment of the asset lifespan to longer durations, reflecting confidence in the durability or ongoing viability of the assets over time.

Estimated Age, Time Elapsed Since Purchase

The estimated age incrementally rises from 7 years in 2020 to 9 years in 2023, indicating a natural aging of assets. However, the value decreases slightly to 8 years in 2024 and remains stable in 2025. This dip suggests asset turnover activities such as disposals or acquisitions of newer assets that reduce the average age.

Estimated Remaining Life

The estimated remaining life remains steady at 6 years from 2020 to 2022 but increases to 7 years from 2023 onward. This improvement in remaining asset life aligns with the extended total useful life noted previously and reflects an expectation of longer service periods for the existing asset inventory, potentially reducing the need for imminent capital expenditure.

Overall, the data illustrates a balanced approach to asset management, with efforts likely directed towards extending asset longevity and refreshing the asset base moderately to optimize operational capacity and cost efficiency.

Property at Cost

The property at cost value demonstrates a consistent upward trend over the six-year period. Starting from $11,372 million in 2020, it increased steadily each year, reaching $15,982 million by 2025. This reflects ongoing investments in property, plant, and equipment, with an overall increase of approximately 40.5% during the period.

Accumulated Depreciation and Amortization

Accumulated depreciation and amortization also rose consistently, from $6,047 million in 2020 to $8,636 million in 2025. The steady increase indicates ongoing usage and aging of assets, correlating with the increase in property at cost. The growth in accumulated depreciation suggests that assets are being depreciated at a pace roughly aligned with acquisition and capitalization trends.

Average Age Ratio

The average age ratio, expressed as a percentage, shows a peak in 2022 at 57.62%, reflecting a relatively older asset base at that time. Post-2022, there is a gradual decline in this ratio to 54.04% in 2025. This decrease implies a renewal or replacement effect where newer assets contribute to lowering the average age, despite ongoing acquisitions.

Property at Cost

The property at cost consistently increased over the six-year period, starting at US$11,372 million in early 2020 and rising to US$15,982 million by early 2025. This represents a steady upward trend with the most significant year-over-year increases observed between 2023 and 2025, indicating sustained investment in property assets.

Depreciation and Amortization Expense for Property

The depreciation and amortization expense remained stable at US$858 million for the first three years (2020-2022), followed by a slight increase to US$879 million in 2023. Subsequently, the expense rose more noticeably to US$958 million in 2024 and further to US$1,100 million in 2025. This upward trend aligns with the increased property base and suggests a growing allocation of cost over time as assets age or newer assets with different depreciation profiles are added.

Estimated Total Useful Life

The estimated total useful life of the property assets increased from 13 years in 2020 to 14 years in 2021 and remained stable at 14 and then 15 years from 2022 onwards. The extension of useful life may reflect changes in asset management policies, technological improvements, or reassessments of asset longevity.

Overall Analysis

The data indicate a strategic expansion of property assets with continuous capital investment. The gradual increase in depreciation expenses corresponds with the growing asset base but is moderated somewhat by the extension of estimated useful life, which likely dilutes annual depreciation charges per unit of asset value. This suggests prudent asset management aimed at balancing investment growth with cost allocation over time.

Accumulated Depreciation and Amortization

The accumulated depreciation and amortization balance showed a consistent upward trend over the six-year period. Starting at $6,047 million in early 2020, it steadily increased year over year, reaching $8,636 million by early 2025. This indicates a continuous allocation of costs related to property, plant, and equipment over time, reflecting ongoing asset usage and aging.

Depreciation and Amortization Expense

The annual depreciation and amortization expense remained stable at $858 million for the first three years (2020–2022). From 2023 onwards, there was a noticeable increase: $879 million in 2023, $958 million in 2024, and $1,100 million in 2025. This rising expense suggests either higher asset capitalization leading to increased charges or changes in depreciation methods or asset mix resulting in greater yearly expense recognition.

Time Elapsed Since Purchase

The average time elapsed since asset purchase hovered mostly between 7 and 9 years during the observed period. It increased from 7 years in 2020 to 9 years in 2023, then slightly decreased to 8 years in the final two years reported. This relatively stable asset age implies a consistent asset replacement or acquisition cycle without significant acceleration or delay.

Overall Analysis

The data collectively indicate a growing accumulated depreciation balance, supported by relatively constant and then gradually increasing annual depreciation expenses. The consistent average asset age suggests steady capital investment and asset turnover. The spike in depreciation expense from 2023 onward merits attention, as it may impact future earnings through higher non-cash charges. Such trends are typical for companies managing substantial property, plant, and equipment portfolios, reflecting both asset aging and capital expenditure strategies.

Net property at cost

The net property at cost demonstrates a consistent upward trend across the periods analyzed. Starting at $5,325 million in early 2020, the figure slightly declined to $5,036 million by early 2021. However, from that point onward, there is a steady increase each year, reaching $7,346 million by early 2025. This indicates ongoing investment in property, plant, and equipment over the timeframe, reflecting expansion or upgrades in asset base.

Depreciation and amortization expense for property

The depreciation and amortization expense remains constant at $858 million from early 2020 through early 2022. Beginning in early 2023, a gradual increase is observed, with expenses rising to $879 million, then further to $958 million in early 2024, and reaching $1,100 million by early 2025. This upward movement suggests accelerated or increased allocation of depreciation, possibly due to higher asset values or changes in depreciation methods or estimations.

Estimated remaining life

The estimated remaining life of property, plant, and equipment remains stable at 6 years from 2020 to 2022. Thereafter, it increases to 7 years from 2023 onwards and stays at that level through 2025. The extension in estimated useful life could reflect asset aging adjustments, improved maintenance programs, or reassessments that prolong the lifespan of property assets.