TJX Cos. Inc. (NYSE:TJX)

The liquidity position, as indicated by the current, quick, and cash ratios, demonstrates a generally declining trend over the observed period, with some fluctuations. Initial values show a relatively strong liquidity profile, which gradually weakens through the first half of the period before exhibiting some stabilization and then renewed decline.

Current Ratio

The current ratio begins at 1.52 and generally decreases to 1.19 by October 2023. A slight recovery to 1.23 is noted in April 2024, but this is followed by a further decline to 1.09 in November 2025. The most recent observation, in May 2025, shows a slight increase to 1.16, and a further increase to 1.14 in January 2026. This suggests a moderate ability to cover short-term liabilities with short-term assets, though this ability has diminished over time and remains relatively low towards the end of the period.

Quick Ratio

The quick ratio exhibits a more pronounced downward trend than the current ratio. Starting at 0.95, it consistently falls to a low of 0.35 by July 2022. While there are periods of modest recovery, such as the increase to 0.59 in January 2023, the ratio generally remains below its initial value. The latest value, 0.51 in January 2026, indicates a reduced capacity to meet immediate obligations with the most liquid assets. The quick ratio consistently remains lower than the current ratio, indicating a reliance on inventory to meet current obligations.

Cash Ratio

The cash ratio demonstrates the most significant decline of the three ratios. Beginning at 0.89, it steadily decreases to 0.30 by October 2022. Subsequent fluctuations show limited recovery, with the ratio remaining below the initial value throughout the remainder of the period. The most recent value of 0.47 in January 2026 suggests a decreasing ability to cover immediate liabilities solely with cash and cash equivalents. This indicates a potential increase in reliance on other current assets or external financing to meet short-term obligations.

Overall, the observed trends suggest a weakening liquidity position. While the company maintains a positive current ratio throughout the period, the declining quick and cash ratios indicate a decreasing reliance on highly liquid assets to cover short-term liabilities. This trend warrants further investigation to understand the underlying causes and potential implications for the company’s financial health.

The current ratio for the analyzed period demonstrates a generally stable, though slightly declining, trend. Initially, the ratio exhibited a decrease from 1.52 to 1.17 over the first seven periods. Subsequently, the ratio experienced minor fluctuations, remaining largely within the 1.16 to 1.23 range for the following six periods. A more noticeable decline is observed in the latter portion of the analyzed timeframe, falling to 1.09 before a slight recovery to 1.14.

Overall Trend

The current ratio generally decreased over the analyzed period, although the decline was not consistent. The initial decrease was more pronounced, followed by a period of relative stability, and then a renewed, albeit smaller, downward trend.

Initial Decline (May 1, 2021 – Jul 30, 2022)

A consistent decrease in the current ratio is evident during this timeframe, moving from 1.52 to 1.17. This suggests a relative increase in current liabilities compared to current assets during this period. The largest single decrease occurred between May 1, 2021 and July 31, 2021.

Period of Stability (Oct 29, 2022 – Apr 29, 2023)

From October 2022 through April 2023, the current ratio remained relatively stable, fluctuating between 1.16 and 1.23. This indicates a period where current assets and current liabilities were more balanced in their changes.

Recent Fluctuations (Jul 29, 2023 – Jan 31, 2026)

The most recent portion of the analysis shows a decrease to 1.09, followed by a slight increase to 1.14. This suggests a potential weakening in the company’s short-term liquidity position, although the final value indicates a partial recovery. The lowest point in the ratio occurred on November 1, 2025.

The observed fluctuations in the current ratio warrant continued monitoring to assess any potential impact on the company’s ability to meet its short-term obligations. While the ratio generally remains above 1.0, indicating sufficient current assets to cover current liabilities, the recent downward trend suggests a need for careful management of working capital.

The quick ratio for the analyzed period demonstrates a generally declining trend, followed by some stabilization and then a renewed decline. Initial values indicate a relatively healthy liquidity position, but this position weakens considerably over time, with some fluctuations. A recent slight improvement is observed, but the ratio remains below one for a significant portion of the period.

Overall Trend

The quick ratio begins at 0.95 and generally decreases through the first half of the analyzed period, reaching a low of 0.35. A partial recovery is then seen, peaking at 0.59, before declining again to 0.38. The most recent periods show a slight increase, reaching 0.51.

Initial Decline (May 2021 - October 2022)

From May 2021 to October 2022, the quick ratio experiences a consistent decline from 0.95 to 0.35. This suggests a weakening ability to meet short-term obligations with highly liquid assets. Both total quick assets and current liabilities contribute to this decline, with current liabilities increasing more rapidly than quick assets during this timeframe.

Partial Recovery (January 2023 - April 2023)

A modest recovery is observed between January 2023 and April 2023, with the quick ratio increasing from 0.35 to 0.55. This improvement is driven by an increase in total quick assets, while current liabilities remain relatively stable.

Subsequent Decline and Recent Stabilization (July 2023 - February 2025)

Following the partial recovery, the quick ratio declines again, reaching a low of 0.38 in November 2025. This is primarily due to a substantial increase in current liabilities. The ratio then shows a slight upward trend, reaching 0.53 in February 2025.

Latest Period (May 2025 - January 2026)

The most recent periods show a slight increase in the quick ratio, from 0.45 in May 2025 to 0.51 in January 2026. This is attributable to a larger increase in total quick assets compared to the increase in current liabilities.

Throughout the analyzed period, the quick ratio frequently falls below 1.0, indicating that the entity may face challenges in covering its immediate liabilities with its most liquid assets. The fluctuations suggest potential shifts in working capital management or changes in the timing of payments and receipts.

The cash ratio for the analyzed period demonstrates a generally declining trend, followed by periods of stabilization and modest recovery. Initial values indicate a relatively strong immediate liquidity position, which weakens over the observed timeframe before showing some improvement in later periods.

Overall Trend

From May 2021 to October 2022, the cash ratio experienced a consistent decrease, falling from 0.89 to 0.30. This suggests a weakening ability to cover current liabilities with only cash and cash equivalents. Following this decline, the ratio exhibited some volatility, with increases observed in January 2023 (to 0.53) and February 2024 (to 0.54), but these gains were not sustained.

Short-Term Fluctuations

A slight recovery is noted between October 2022 and February 2024, peaking at 0.54. However, this was followed by a renewed decline to 0.33 in November 2025, indicating continued pressure on immediate liquidity. The most recent periods, January 2026 and May 2025, show a partial rebound, reaching 0.47 and 0.41 respectively, but remain below the initial levels observed in 2021.

Relationship to Liability Changes

The decline in the cash ratio largely corresponds with increases in current liabilities. While total cash assets decreased over much of the period, the growth in current liabilities exerted a more significant downward pressure on the ratio. The period from November 2024 to November 2025 demonstrates this clearly, with a substantial increase in current liabilities coinciding with a drop in the cash ratio.

Recent Performance

The latest two periods, May 2025 and August 2025, show a slight increase in the cash ratio, suggesting a potential stabilization of the liquidity position. However, the ratio remains relatively low compared to the beginning of the analyzed period, and continued monitoring is warranted. The final reported value, for November 2025, shows a decrease, indicating the recent stabilization may be temporary.

In summary, the cash ratio indicates a generally weakening liquidity position over the analyzed period, with some recent, limited signs of potential stabilization. The interplay between cash asset levels and current liability fluctuations is a key driver of these trends.