Stock Analysis on Net
Stock Analysis on Net

TJX Cos. Inc. (NYSE:TJX)

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

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 (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Feb 3, 2024 61.27% = 15.04% × 4.07
Oct 28, 2023 60.14% = 13.54% × 4.44
Jul 29, 2023 60.25% = 13.77% × 4.38
Apr 29, 2023 59.20% = 13.25% × 4.47
Jan 28, 2023 54.97% = 12.34% × 4.45
Oct 29, 2022 60.02% = 11.96% × 5.02
Jul 30, 2022 62.26% = 12.40% × 5.02
Apr 30, 2022 59.63% = 12.04% × 4.95
Jan 29, 2022 54.69% = 11.53% × 4.74
Oct 30, 2021 41.40% = 8.87% × 4.67
Jul 31, 2021 39.21% = 8.73% × 4.49
May 1, 2021 24.63% = 4.99% × 4.94
Jan 30, 2021 1.55% = 0.29% × 5.28
Oct 31, 2020 13.47% = 2.38% × 5.67
Aug 1, 2020 15.26% = 2.68% × 5.70
May 2, 2020 35.54% = 6.63% × 5.36
Feb 1, 2020 55.01% = 13.55% × 4.06
Nov 2, 2019 56.45% = 12.88% × 4.38
Aug 3, 2019 57.76% = 13.40% × 4.31
May 4, 2019 59.31% = 13.53% × 4.38
Feb 2, 2019 60.61% = 21.36% × 2.84
Nov 3, 2018 — = — × 2.86
Aug 4, 2018 — = — × 2.70
May 5, 2018 — = — × 2.66

Based on: 10-K (reporting date: 2024-02-03), 10-Q (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2024 is the increase in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

TJX Cos. Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Feb 3, 2024 61.27% = 8.25% × 1.82 × 4.07
Oct 28, 2023 60.14% = 7.85% × 1.72 × 4.44
Jul 29, 2023 60.25% = 7.77% × 1.77 × 4.38
Apr 29, 2023 59.20% = 7.56% × 1.75 × 4.47
Jan 28, 2023 54.97% = 7.00% × 1.76 × 4.45
Oct 29, 2022 60.02% = 6.90% × 1.73 × 5.02
Jul 30, 2022 62.26% = 6.77% × 1.83 × 5.02
Apr 30, 2022 59.63% = 6.69% × 1.80 × 4.95
Jan 29, 2022 54.69% = 6.76% × 1.71 × 4.74
Oct 30, 2021 41.40% = 5.85% × 1.52 × 4.67
Jul 31, 2021 39.21% = 5.81% × 1.50 × 4.49
May 1, 2021 24.63% = 4.00% × 1.25 × 4.94
Jan 30, 2021 1.55% = 0.28% × 1.04 × 5.28
Oct 31, 2020 13.47% = 2.24% × 1.06 × 5.67
Aug 1, 2020 15.26% = 2.11% × 1.27 × 5.70
May 2, 2020 35.54% = 4.57% × 1.45 × 5.36
Feb 1, 2020 55.01% = 7.84% × 1.73 × 4.06
Nov 2, 2019 56.45% = 7.70% × 1.67 × 4.38
Aug 3, 2019 57.76% = 7.65% × 1.75 × 4.31
May 4, 2019 59.31% = 7.69% × 1.76 × 4.38
Feb 2, 2019 60.61% = 7.85% × 2.72 × 2.84
Nov 3, 2018 — = — × — × 2.86
Aug 4, 2018 — = — × — × 2.70
May 5, 2018 — = — × — × 2.66

Based on: 10-K (reporting date: 2024-02-03), 10-Q (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05).

The primary reason for the increase in return on equity ratio (ROE) over Q4 2024 is the increase in efficiency measured by asset turnover ratio.

Two-Component Disaggregation of ROA

TJX Cos. Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Feb 3, 2024 15.04% = 8.25% × 1.82
Oct 28, 2023 13.54% = 7.85% × 1.72
Jul 29, 2023 13.77% = 7.77% × 1.77
Apr 29, 2023 13.25% = 7.56% × 1.75
Jan 28, 2023 12.34% = 7.00% × 1.76
Oct 29, 2022 11.96% = 6.90% × 1.73
Jul 30, 2022 12.40% = 6.77% × 1.83
Apr 30, 2022 12.04% = 6.69% × 1.80
Jan 29, 2022 11.53% = 6.76% × 1.71
Oct 30, 2021 8.87% = 5.85% × 1.52
Jul 31, 2021 8.73% = 5.81% × 1.50
May 1, 2021 4.99% = 4.00% × 1.25
Jan 30, 2021 0.29% = 0.28% × 1.04
Oct 31, 2020 2.38% = 2.24% × 1.06
Aug 1, 2020 2.68% = 2.11% × 1.27
May 2, 2020 6.63% = 4.57% × 1.45
Feb 1, 2020 13.55% = 7.84% × 1.73
Nov 2, 2019 12.88% = 7.70% × 1.67
Aug 3, 2019 13.40% = 7.65% × 1.75
May 4, 2019 13.53% = 7.69% × 1.76
Feb 2, 2019 21.36% = 7.85% × 2.72
Nov 3, 2018 — = — × —
Aug 4, 2018 — = — × —
May 5, 2018 — = — × —

Based on: 10-K (reporting date: 2024-02-03), 10-Q (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-K (reporting date: 2023-01-28), 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05).

The primary reason for the increase in return on assets ratio (ROA) over Q4 2024 is the increase in asset turnover ratio.