TJX Cos. Inc. (NYSE:TJX)

Return on Assets (ROA)

The ROA experienced a significant decline in the year ending January 30, 2021, dropping sharply from 13.55% to 0.29%. This was followed by a strong recovery in the subsequent years, reaching 11.53% in 2022 and continuing an upward trend to 15.32% by 2025. Overall, the ROA demonstrates a resilient recovery and gradual improvement after an unusual dip in 2021.

Financial Leverage

Financial leverage increased markedly in 2021, rising from 4.06 to 5.28. After this peak, it steadily decreased each year, falling back to 3.78 by 2025. This trend suggests an initial increase in the use of debt, followed by a strategic reduction in leverage over the subsequent years.

Return on Equity (ROE)

ROE followed a pattern similar to ROA, with a drastic decline in 2021 from 55.01% to 1.55%, then a rapid and sustained recovery to above 50% in the years that followed. The peak was observed in 2024 at 61.27%, with a slight decrease to 57.95% in 2025. This indicates strong profitability and effective equity utilization after a significant disruption in 2021.

Net Profit Margin

The net profit margin experienced a significant decline from 7.84% in early 2020 to a low of 0.28% in early 2021. Following this drop, the margin recovered noticeably, rising to 6.76% in early 2022 and continuing an upward trend to reach 8.63% by early 2025. This indicates improved profitability and efficiency in cost management after the initial downturn.

Asset Turnover

The asset turnover ratio declined sharply from 1.73 in early 2020 to 1.04 in early 2021, similar to the net profit margin trend, suggesting reduced efficiency in generating revenue from assets. However, there was a steady recovery over subsequent years, peaking at 1.82 in early 2024 before a slight decrease to 1.78 in early 2025. Overall, this reflects an improvement in asset utilization efficiency following the initial decline.

Financial Leverage

Financial leverage increased from 4.06 in early 2020 to a peak of 5.28 in early 2021, indicating greater reliance on debt financing during this period. After 2021, leverage steadily decreased each year, reaching 3.78 by early 2025. This trend suggests a strategic reduction in debt levels and a move towards a more conservative capital structure in the most recent years.

Return on Equity (ROE)

ROE mirrored the volatility seen in net profit margin and asset turnover, dropping sharply from 55.01% in early 2020 to 1.55% in early 2021. Subsequently, ROE rebounded strongly, reaching 61.27% in early 2024 before tapering slightly to 57.95% in early 2025. This pattern reflects a recovery in overall profitability and efficient use of equity capital following the downturn in 2021.

Tax Burden

The tax burden ratio exhibits a notable spike in the period ending January 30, 2021, increasing from 0.74 to 1.01, before reverting to a steady range of approximately 0.75 in subsequent years. This suggests an unusually high tax impact or adjustment during that specific year, followed by stabilization.

Interest Burden

This ratio experienced a significant decline to 0.32 in the year ending January 30, 2021, contrasting with high ratios around 0.98 to 0.99 in other periods. The dip indicates an exceptional increase in interest expenses or a decrease in earnings before interest and taxes during that year, with a clear recovery thereafter.

EBIT Margin

The EBIT margin dropped sharply in 2021 to 0.88% from 10.7% the previous year, signaling a major reduction in operating profitability. However, it rebounded strongly in the subsequent years, rising continuously to reach 11.64% by 2025, surpassing pre-2021 levels. This reflects a resilient recovery and improvement in operational efficiency over time.

Asset Turnover

Asset turnover decreased substantially in 2021 to 1.04 from 1.73 in 2020, indicating reduced efficiency in utilizing assets for revenue generation during that year. This metric improved steadily afterward, peaking at 1.82 in 2024 before a slight decline to 1.78 in 2025, demonstrating overall enhanced asset utilization post-2021.

Financial Leverage

Financial leverage peaked in 2021 at 5.28, up from 4.06 in 2020, implying increased reliance on debt or other liabilities relative to equity. Following this peak, leverage decreased progressively each year, reaching 3.78 by 2025, which indicates a strategic reduction of financial risk over the analyzed period.

Return on Equity (ROE)

ROE mirrored the disruptive pattern seen in other profitability and efficiency indicators, plunging to 1.55% in 2021 from a high 55.01% in 2020. It then recovered robustly and consistently, peaking at 61.27% in 2024 before a slight decline to 57.95% in 2025. This trend suggests strong returns for shareholders following a temporary downturn, aligned with improvements in operational performance and asset management.

Net Profit Margin

The net profit margin shows a notable decrease from 7.84% in the period ending February 1, 2020, to a low of 0.28% by January 30, 2021. This sharp decline is followed by a recovery trend, rising to 6.76% in January 29, 2022, and then gradually increasing over subsequent periods to reach 8.63% by February 1, 2025. Overall, after an initial dip, the net profit margin demonstrates a strong recovery and improvement trend.

Asset Turnover

Asset turnover exhibits a decline from 1.73 in February 2020 to 1.04 in January 2021, indicating a reduction in the efficiency of asset utilization during that period. However, this ratio improves markedly in the following years, climbing back to 1.71 in January 2022 and continuing to increase slightly to 1.82 by February 3, 2024, before a minor decrease to 1.78 by February 1, 2025. The general pattern suggests a recovery and stabilization of asset use efficiency after an initial decrease.

Return on Assets (ROA)

Return on assets follows a pattern similar to the net profit margin. Starting at 13.55% in February 2020, it experiences a significant drop to 0.29% in January 2021. Subsequently, ROA improves steadily to 11.53% in January 2022 and continues its upward trajectory, reaching 15.32% by February 2025. This trend indicates a recovery from a difficult period and an enhancement in the company's ability to generate profits from its asset base.

Tax Burden

The tax burden ratio remained relatively stable over the observed period, fluctuating slightly but stabilizing at 0.75 from 2022 onwards. A notable deviation occurred in 2021 when the ratio reached 1.01, indicating a temporary increase in tax obligations relative to pre-tax income. The consistency in later years suggests a normalized tax environment or effective tax planning.

Interest Burden

The interest burden ratio displayed a significant decrease in 2021 to 0.32, suggesting a substantial increase in interest expenses or a reduction in EBIT during that year, which was not sustained in subsequent years. From 2022 onwards, the ratio recovered close to previous levels around 0.97 to 0.99, indicating an improvement in operational earnings relative to interest expenses.

EBIT Margin

The EBIT margin experienced a sharp decline in 2021 to 0.88%, a significant drop from 10.7% in 2020. However, there was a notable recovery from 2022 onwards, with a steady increase reaching 11.64% in 2025. This trend suggests challenges faced in 2021 adversely affecting operating profitability, followed by effective measures to improve margins in subsequent years.

Asset Turnover

Asset turnover ratio declined in 2021 to 1.04 from 1.73 in 2020, representing reduced efficiency in using assets to generate sales. The company then improved consistently post-2021, reaching a peak of 1.82 in 2024 before a slight decrease to 1.78 in 2025. This indicates an overall enhancement in asset utilization after the dip in 2021.

Return on Assets (ROA)

Return on assets mirrored the trends observed in EBIT margin and asset turnover, with a drastic decline in 2021 to 0.29% from 13.55% in 2020. Following this, ROA recovered steadily, increasing to 15.32% by 2025. This improvement highlights strengthened profitability and efficient asset management in the latter years after a significant downturn in 2021.

The analysis of the financial ratios over the reported periods reveals several noteworthy trends and variations in performance indicators.

Tax Burden

The tax burden ratio exhibited a significant increase in the period ending January 30, 2021, rising to 1.01 from 0.74 the previous year. Subsequently, it stabilized at 0.75 for the remaining periods, suggesting a return to a lower and more consistent effective tax rate.

Interest Burden

The interest burden ratio experienced a sharp decline to 0.32 in the period ending January 30, 2021, from 0.99 in the prior year. This indicates a substantial rise in interest expenses relative to earnings before interest and taxes during that period. However, in the following years, the interest burden ratio rebounded close to its original level, maintaining a stable ratio near 0.99, reflecting improved control over interest costs or reduced debt levels.

EBIT Margin

The EBIT margin saw a pronounced decrease to 0.88% in the January 30, 2021, period from 10.7% in the prior year, indicating a significant reduction in operating profitability. From January 29, 2022, onwards, the margin steadily improved, reaching 11.64% by February 1, 2025, surpassing the initial 2020 margin and suggesting enhanced operational efficiency and profitability.

Net Profit Margin

The net profit margin mirrored the EBIT margin trend, declining sharply to 0.28% in the January 30, 2021, period from 7.84% in the preceding year. Subsequently, it consistently increased in the following years, attaining 8.63% by February 1, 2025, which denotes improved overall profitability and likely better cost management and revenue generation.