Stock Analysis on Net
Stock Analysis on Net

TJX Cos. Inc. (NYSE:TJX)

Common-Size Income Statement 

TJX Cos. Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Jan 31, 2026 Feb 1, 2025 Feb 3, 2024 Jan 28, 2023 Jan 29, 2022 Jan 30, 2021
Net sales 100.00 100.00 100.00 100.00 100.00 100.00
Cost of sales, including buying and occupancy costs -69.04 -69.40 -70.00 -72.39 -71.50 -76.34
Gross earnings 30.96% 30.60% 30.00% 27.61% 28.50% 23.66%
Selling, general and administrative expenses -19.07 -19.42 -19.31 -17.88 -18.70 -21.85
Operating income 11.89% 11.18% 10.69% 9.73% 9.79% 1.81%
Impairment on equity investment 0.00 0.00 0.00 -0.44 0.00 0.00
Loss on early extinguishment of debt 0.00 0.00 0.00 0.00 -0.50 -0.97
Interest expense, excluding capitalized interest -0.12 -0.13 -0.15 -0.17 -0.25 -0.60
Interest income 0.32 0.46 0.46 0.16 0.01 0.04
Interest income (expense), net 0.20% 0.32% 0.31% -0.01% -0.24% -0.56%
Income before income taxes 12.09% 11.50% 11.01% 9.28% 9.06% 0.28%
(Provision) benefit for income taxes -2.99 -2.87 -2.75 -2.28 -2.30 0.00
Net income 9.10% 8.63% 8.25% 7.00% 6.76% 0.28%

Based on: 10-K (reporting date: 2026-01-31), 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).

The common-size income statement reveals several noteworthy trends over the analyzed period. A consistent improvement in profitability is evident, driven by both gross margin expansion and effective expense management. The company demonstrates increasing operational efficiency and a strengthening financial performance from 2021 through the projected figures for 2026.

Gross Profitability
Gross earnings as a percentage of net sales exhibited a positive trend, increasing from 23.66% in 2021 to a projected 30.96% in 2026. This indicates improved efficiency in managing the cost of sales, including buying and occupancy costs, which decreased from -76.34% to -69.04% over the same period. The largest single-year increase occurred between 2021 and 2022.
Operating Performance
Operating income demonstrated substantial growth, rising from 1.81% of net sales in 2021 to a projected 11.89% in 2026. This improvement is attributable to both the expansion of gross earnings and a relatively stable management of selling, general, and administrative expenses, which fluctuated between -17.88% and -19.42% of net sales. The year 2023 saw a slight dip in operating income percentage before resuming its upward trajectory.
Non-Operating Items
The impact of non-operating items appears to be diminishing. Impairment on equity investment was present only in 2023 at -0.44% of net sales. Loss on early extinguishment of debt was more significant in 2021 (-0.97%) and 2022 (-0.50%) but disappeared in subsequent years. Interest expense, excluding capitalized interest, consistently decreased as a percentage of net sales, from -0.60% in 2021 to a projected -0.12% in 2026.
Interest and Tax Effects
Interest income increased significantly, moving from 0.04% to 0.46% between 2021 and 2024, before settling at 0.32% in 2026. This contributed to a net positive interest income, improving from -0.56% to 0.20% over the period. The (provision) benefit for income taxes fluctuated, initially showing a benefit in 2022 and 2023, before becoming a provision in later years, increasing in magnitude from -2.30% to -2.99% of net sales.
Net Income
Net income exhibited the most dramatic improvement, increasing from 0.28% of net sales in 2021 to a projected 9.10% in 2026. This reflects the combined positive effects of gross margin expansion, operating efficiency, decreasing non-operating losses, and favorable interest income. The trend suggests a consistently improving bottom-line performance.

Overall, the common-size income statement indicates a company experiencing increasing profitability and efficiency. The consistent upward trends in gross earnings, operating income, and net income suggest a positive outlook for future financial performance.

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