Return on Capital (ROC)
Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.
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- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Analysis of Liquidity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Return on Assets (ROA) since 2005
- Analysis of Debt
- Aggregate Accruals
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Return on Invested Capital (ROIC)
TJX Cos. Inc., ROIC calculation, comparison to benchmarks
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net operating profit after taxes (NOPAT)1 | |||||||
| Invested capital2 | |||||||
| Performance Ratio | |||||||
| ROIC3 | |||||||
| Benchmarks | |||||||
| ROIC, Competitors4 | |||||||
| Amazon.com Inc. | |||||||
| Home Depot Inc. | |||||||
| Lowe’s Cos. Inc. | |||||||
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 NOPAT. See details »
2 Invested capital. See details »
3 2025 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Net Operating Profit After Taxes (NOPAT)
- The NOPAT values exhibit considerable fluctuation over the analyzed periods. There is a sharp decline from 3536 million US dollars in February 2020 to 270 million in January 2021. Subsequently, the NOPAT shows a strong recovery and consistent growth through to February 2025, increasing from 3612 million US dollars in January 2022 to 5082 million US dollars in February 2025. This indicates a rebound and strengthening in operating profitability after the initial significant drop.
- Invested Capital
- Invested capital generally trends upwards across the periods observed. Starting at 18,717 million US dollars in February 2020, it peaks at 22,428 million in January 2021 before experiencing a moderate decline to 19,742 million in January 2022. After this dip, invested capital gradually increases again, reaching 22,612 million US dollars in February 2025. The overall pattern suggests an increasing commitment of resources over time, despite the short-term fluctuation.
- Return on Invested Capital (ROIC)
- The ROIC follows a pattern closely aligned with trends in NOPAT, reflecting the company's efficiency in generating returns from its invested capital. There is a significant drop from 18.89% in February 2020 to 1.2% in January 2021, which coincides with the NOPAT decline during the same period. Following this low point, ROIC recovers sharply to 18.3% in January 2022 and continues to improve steadily, reaching 22.47% by February 2025. This indicates enhanced operational performance and capital utilization efficiency in later periods.
- Overall Trends and Insights
- The data reveals an initial period of marked contraction in profitability and return on capital despite an increase in invested capital in early 2021. This may suggest challenging operational conditions or significant external disruptions during that timeframe. However, from 2022 onwards, the company demonstrates a robust recovery in operating profit and profitability ratios, alongside a measured increase in invested capital. The rising ROIC throughout the latter years indicates that the company not only restored but improved its ability to generate profit from its investments, signaling improved operational effectiveness and financial health.
Decomposition of ROIC
TJX Cos. Inc., decomposition of ROIC
| ROIC | = | OPM1 | × | TO2 | × | 1 – CTR3 | |
|---|---|---|---|---|---|---|---|
| Feb 1, 2025 | = | × | × | ||||
| Feb 3, 2024 | = | × | × | ||||
| Jan 28, 2023 | = | × | × | ||||
| Jan 29, 2022 | = | × | × | ||||
| Jan 30, 2021 | = | × | × | ||||
| Feb 1, 2020 | = | × | × |
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 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
- Operating Profit Margin (OPM)
- The operating profit margin showed a significant decline in the year ending January 30, 2021, dropping sharply from 11.34% to 1.83%. However, this was followed by a recovery in subsequent years, with the margin increasing steadily to reach 11.89% by February 1, 2025, surpassing the initial 2020 level. This suggests a period of temporary operational challenges followed by effective margin restoration and growth.
- Turnover of Capital (TO)
- The turnover of capital exhibited a marked decrease in 2021 to 1.44 from 2.23 in 2020, indicating reduced efficiency in generating revenue from invested capital during that year. From 2021 onward, the ratio rebounded and generally trended upward, peaking at 2.57 by February 3, 2024, before a slight decrease to 2.49 the following year. Overall, capital utilization improved after the initial dip.
- Effective Cash Tax Rate (CTR)
- The effective cash tax rate experienced a notable reduction from 74.68% to 45.71% between 2020 and 2021, indicating a significant tax benefit or reduction during that period. After 2021, the effective tax rate reverted near prior levels and stabilized within a narrow range around 75%, signifying a return to more typical tax expense proportions in subsequent years.
- Return on Invested Capital (ROIC)
- ROIC sharply declined in 2021 to 1.2% from an already strong 18.89% in 2020, suggesting a significant temporary drop in overall capital profitability. Following this trough, ROIC steadily recovered and improved over the next several years, reaching a peak of 22.47% by 2025. The upward trend aligns with the recovery observed in both operating profit margin and capital turnover, reflecting enhanced returns on investments.
Operating Profit Margin (OPM)
TJX Cos. Inc., OPM calculation, comparison to benchmarks
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net operating profit after taxes (NOPAT)1 | |||||||
| Add: Cash operating taxes2 | |||||||
| Net operating profit before taxes (NOPBT) | |||||||
| Net sales | |||||||
| Add: Increase (decrease) in deferred gift card revenue | |||||||
| Adjusted net sales | |||||||
| Profitability Ratio | |||||||
| OPM3 | |||||||
| Benchmarks | |||||||
| OPM, Competitors4 | |||||||
| Amazon.com Inc. | |||||||
| Home Depot Inc. | |||||||
| Lowe’s Cos. Inc. | |||||||
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 NOPAT. See details »
2 Cash operating taxes. See details »
3 2025 Calculation
OPM = 100 × NOPBT ÷ Adjusted net sales
= 100 × ÷ =
4 Click competitor name to see calculations.
- Net Operating Profit Before Taxes (NOPBT)
- The net operating profit before taxes shows a significant fluctuation over the periods. There is an initial decrease from $4,734 million in 2020 to $590 million in 2021, followed by a recovery in subsequent years with values steadily increasing to $6,710 million by 2025. This suggests a major disruption or extraordinary event occurred in the 2021 period, severely impacting profitability, after which the company demonstrated a strong recovery and growth trajectory.
- Adjusted Net Sales
- Adjusted net sales reflect a declining trend from $41,768 million in 2020 to $32,212 million in 2021, mirroring the profit trend. After 2021, sales increased consistently each year, reaching $56,411 million in 2025. The recovery in sales volume indicates a rebound in market demand or operational effectiveness, supporting improved revenue generation over time.
- Operating Profit Margin (OPM)
- The operating profit margin exhibits volatility in the analyzed timeframe. The margin starts at 11.34% in 2020 but falls drastically to 1.83% in 2021, indicating much reduced profitability relative to sales during that year. From 2021 onward, the margin progressively improves, surpassing the 2020 level by 2024 and slightly increasing to 11.89% in 2025. This pattern signals enhanced cost control and operational efficiency following the disruption in 2021.
Turnover of Capital (TO)
TJX Cos. Inc., TO calculation, comparison to benchmarks
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | |||||||
| Add: Increase (decrease) in deferred gift card revenue | |||||||
| Adjusted net sales | |||||||
| Invested capital1 | |||||||
| Efficiency Ratio | |||||||
| TO2 | |||||||
| Benchmarks | |||||||
| TO, Competitors3 | |||||||
| Amazon.com Inc. | |||||||
| Home Depot Inc. | |||||||
| Lowe’s Cos. Inc. | |||||||
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 Invested capital. See details »
2 2025 Calculation
TO = Adjusted net sales ÷ Invested capital
= ÷ =
3 Click competitor name to see calculations.
- Adjusted Net Sales
- Adjusted net sales exhibited a significant decline from February 1, 2020, to January 30, 2021, dropping from 41,768 million US dollars to 32,212 million US dollars. Following this period, sales showed a robust recovery and growth trend, increasing steadily each year. By February 1, 2025, the figure reached 56,411 million US dollars, representing a considerable growth compared to the initial and previous years.
- Invested Capital
- The invested capital increased from 18,717 million US dollars in February 2020 to 22,428 million US dollars in January 2021, reflecting a rise during the period where sales dropped. In the subsequent years, invested capital experienced fluctuations but generally maintained an upward trend, reaching 22,612 million US dollars by February 2025. This pattern suggests ongoing investments in assets or operations despite sales volatility.
- Turnover of Capital (TO)
- Turnover of capital ratios displayed a marked decline from 2.23 in February 2020 to 1.44 in January 2021, indicating reduced efficiency in using capital to generate sales in that period. Post-2021, there was a significant recovery and improvement in capital turnover, with the ratio climbing to levels above 2.4 from January 2022 onward. The turnover ratio peaked at 2.57 in February 2024 before slightly declining to 2.49 in February 2025. Overall, the company demonstrated increased efficiency in capital utilization following the initial downturn.
Effective Cash Tax Rate (CTR)
TJX Cos. Inc., CTR calculation, comparison to benchmarks
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net operating profit after taxes (NOPAT)1 | |||||||
| Add: Cash operating taxes2 | |||||||
| Net operating profit before taxes (NOPBT) | |||||||
| Tax Rate | |||||||
| CTR3 | |||||||
| Benchmarks | |||||||
| CTR, Competitors4 | |||||||
| Amazon.com Inc. | |||||||
| Home Depot Inc. | |||||||
| Lowe’s Cos. Inc. | |||||||
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 NOPAT. See details »
2 Cash operating taxes. See details »
3 2025 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × ÷ =
4 Click competitor name to see calculations.
- Cash operating taxes
- Cash operating taxes exhibited significant fluctuations over the reported periods. Starting at 1,199 million US dollars in early 2020, there was a sharp decline to 320 million in early 2021, followed by a substantial increase to 1,229 million in 2022. Subsequently, cash operating taxes slightly decreased to 1,128 million in 2023, then showed a notable upward trend reaching 1,532 million and 1,628 million in 2024 and 2025, respectively. Overall, this indicates variability with a recovery and growth trend after the initial decline.
- Net operating profit before taxes (NOPBT)
- The net operating profit before taxes saw volatile changes during the periods under review. It started at 4,734 million US dollars in 2020 but dropped significantly to 590 million in 2021. Following this low, NOPBT rebounded strongly to 4,841 million in 2022, continuing to increase to 4,931 million in 2023. The upward momentum gathered pace with figures rising to 6,168 million in 2024 and further to 6,710 million in 2025. This progression reflects a robust recovery and growth in operating profitability over the last four years.
- Effective cash tax rate (CTR)
- The effective cash tax rate showed a pronounced spike in early 2021, rising sharply to 54.29% from a previous rate of 25.32% in 2020. After this peak, the rate returned to more typical levels between 22.88% and 25.39% from 2022 through 2025, indicating stabilization. The rate slightly decreased in 2025 to 24.26%, suggesting a consistent tax burden relative to operating profits after the abnormal increase in 2021.