Stock Analysis on Net
Stock Analysis on Net

TJX Cos. Inc. (NYSE:TJX)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

TJX Cos. Inc., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Feb 3, 2024 61.27% = 15.04% × 4.07
Jan 28, 2023 54.97% = 12.34% × 4.45
Jan 29, 2022 54.69% = 11.53% × 4.74
Jan 30, 2021 1.55% = 0.29% × 5.28
Feb 1, 2020 55.01% = 13.55% × 4.06
Feb 2, 2019 60.61% = 21.36% × 2.84

Based on: 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), 10-K (reporting date: 2019-02-02).

The primary reason for the increase in return on equity ratio (ROE) over 2024 year is the increase in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

TJX Cos. Inc., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Feb 3, 2024 61.27% = 8.25% × 1.82 × 4.07
Jan 28, 2023 54.97% = 7.00% × 1.76 × 4.45
Jan 29, 2022 54.69% = 6.76% × 1.71 × 4.74
Jan 30, 2021 1.55% = 0.28% × 1.04 × 5.28
Feb 1, 2020 55.01% = 7.84% × 1.73 × 4.06
Feb 2, 2019 60.61% = 7.85% × 2.72 × 2.84

Based on: 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), 10-K (reporting date: 2019-02-02).

The primary reason for the increase in return on equity ratio (ROE) over 2024 year is the increase in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

TJX Cos. Inc., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Feb 3, 2024 61.27% = 0.75 × 0.99 × 11.15% × 1.82 × 4.07
Jan 28, 2023 54.97% = 0.75 × 0.98 × 9.45% × 1.76 × 4.45
Jan 29, 2022 54.69% = 0.75 × 0.97 × 9.30% × 1.71 × 4.74
Jan 30, 2021 1.55% = 1.01 × 0.32 × 0.88% × 1.04 × 5.28
Feb 1, 2020 55.01% = 0.74 × 0.99 × 10.70% × 1.73 × 4.06
Feb 2, 2019 60.61% = 0.73 × 0.98 × 10.87% × 2.72 × 2.84

Based on: 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), 10-K (reporting date: 2019-02-02).

The primary reason for the increase in return on equity ratio (ROE) over 2024 year is the increase in operating profitability measured by EBIT margin ratio.

Two-Component Disaggregation of ROA

TJX Cos. Inc., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Feb 3, 2024 15.04% = 8.25% × 1.82
Jan 28, 2023 12.34% = 7.00% × 1.76
Jan 29, 2022 11.53% = 6.76% × 1.71
Jan 30, 2021 0.29% = 0.28% × 1.04
Feb 1, 2020 13.55% = 7.84% × 1.73
Feb 2, 2019 21.36% = 7.85% × 2.72

Based on: 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), 10-K (reporting date: 2019-02-02).

The primary reason for the increase in return on assets ratio (ROA) over 2024 year is the increase in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

TJX Cos. Inc., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Feb 3, 2024 15.04% = 0.75 × 0.99 × 11.15% × 1.82
Jan 28, 2023 12.34% = 0.75 × 0.98 × 9.45% × 1.76
Jan 29, 2022 11.53% = 0.75 × 0.97 × 9.30% × 1.71
Jan 30, 2021 0.29% = 1.01 × 0.32 × 0.88% × 1.04
Feb 1, 2020 13.55% = 0.74 × 0.99 × 10.70% × 1.73
Feb 2, 2019 21.36% = 0.73 × 0.98 × 10.87% × 2.72

Based on: 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), 10-K (reporting date: 2019-02-02).

The primary reason for the increase in return on assets ratio (ROA) over 2024 year is the increase in operating profitability measured by EBIT margin ratio.

Disaggregation of Net Profit Margin

TJX Cos. Inc., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Feb 3, 2024 8.25% = 0.75 × 0.99 × 11.15%
Jan 28, 2023 7.00% = 0.75 × 0.98 × 9.45%
Jan 29, 2022 6.76% = 0.75 × 0.97 × 9.30%
Jan 30, 2021 0.28% = 1.01 × 0.32 × 0.88%
Feb 1, 2020 7.84% = 0.74 × 0.99 × 10.70%
Feb 2, 2019 7.85% = 0.73 × 0.98 × 10.87%

Based on: 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), 10-K (reporting date: 2019-02-02).

The primary reason for the increase in net profit margin ratio over 2024 year is the increase in operating profitability measured by EBIT margin ratio.