Microsoft Excel LibreOffice Calc

TJX Cos. Inc. (TJX)

Return on Capital (ROC)

Difficulty: Advanced

Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company’s debt and equity structure. It measures business productivity performance.

Return on Invested Capital (ROIC)

TJX Cos. Inc., ROIC calculation

Microsoft Excel LibreOffice Calc
Feb 2, 2019 Feb 3, 2018 Jan 28, 2017 Jan 30, 2016 Jan 31, 2015 Feb 1, 2014
Selected Financial Data (US$ in thousands)
Net operating profit after taxes (NOPAT)1 3,155,360  2,635,209  2,446,942  2,503,986  2,500,016  2,386,960 
Invested capital2 16,960,214  16,160,847  14,935,402  13,469,411  13,017,789  11,971,690 
Performance Ratio
ROIC3 18.60% 16.31% 16.38% 18.59% 19.20% 19.94%

Based on: 10-K (filing date: 2019-04-03), 10-K (filing date: 2018-04-04), 10-K (filing date: 2017-03-28), 10-K (filing date: 2016-03-29), 10-K (filing date: 2015-03-31), 10-K (filing date: 2014-04-01).

1 NOPAT. See details »

2 Invested capital. See details »

3 2019 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 3,155,360 ÷ 16,960,214 = 18.60%

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. TJX Cos. Inc.’s ROIC deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.