Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Analysis of Liquidity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Return on Assets (ROA) since 2005
- Analysis of Debt
- Aggregate Accruals
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Solvency Ratios (Summary)
Based on: 10-K (reporting date: 2025-02-01), 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).
- Debt to Equity
- The debt to equity ratio experienced significant volatility between fiscal years 2020 and 2025. It surged sharply from 0.38 in 2020 to 1.04 in 2021, indicating increased leverage, before declining steadily over subsequent years to reach 0.34 by 2025. This suggests a strategic reduction in reliance on debt financing relative to equity following the 2021 peak.
- Debt to Equity (Including Operating Lease Liability)
- This adjusted ratio followed a similar pattern to the standard debt to equity ratio but at consistently higher levels, reflecting the impact of operating lease liabilities. It peaked at 2.66 in 2021, then gradually decreased to 1.52 by 2025, indicating improved management of total obligations including leases.
- Debt to Capital
- The debt to capital ratio rose notably from 0.27 in 2020 to 0.51 in 2021, corresponding with the increase in debt to equity, before decreasing to 0.25 by 2025. This downward trend after 2021 reflects a reduction in debt relative to the company’s overall capital structure.
- Debt to Capital (Including Operating Lease Liability)
- This ratio remained higher than the standard metric and showed a peak in 2021 at 0.73. It then declined gradually to 0.60 by 2025, signaling a cautious approach toward managing total capital and lease-related obligations.
- Debt to Assets
- The debt to assets ratio increased from 0.09 in 2020 to 0.20 in 2021, followed by a decrease back to 0.09 in 2025. The pattern is consistent with other leverage metrics, pointing to a temporary increase in debt load relative to total assets in 2021 and subsequent deleveraging.
- Debt to Assets (Including Operating Lease Liability)
- This metric was significantly higher, ranging from 0.47 to 0.40 over the period. It peaked slightly in 2021 and then showed a steady decline, indicating better overall asset backing of liabilities including leases.
- Financial Leverage
- Financial leverage reached its highest at 5.28 in 2021 but steadily declined to 3.78 by 2025. This suggests an overall decrease in the use of debt financing relative to equity, contributing to a less risky capital structure in later years.
- Interest Coverage
- Interest coverage exhibited extreme volatility, with a dramatic drop from 75.57 in 2020 to 1.46 in 2021, reflecting a significant challenge in covering interest expenses that year. Subsequently, it improved sharply, rising to 86.30 by 2025, indicating robust earnings performance relative to interest obligations in recent years.
- Fixed Charge Coverage
- Fixed charge coverage decreased to 1.04 in 2021 from 3.43 in 2020 but gradually increased thereafter to 3.98 by 2025. This progression highlights improved ability to cover fixed financial obligations, signaling enhanced financial stability after 2021.
Debt Ratios
Coverage Ratios
Debt to Equity
Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Current portion of long-term debt | |||||||
Long-term debt, excluding current portion | |||||||
Total debt | |||||||
Shareholders’ equity | |||||||
Solvency Ratio | |||||||
Debt to equity1 | |||||||
Benchmarks | |||||||
Debt to Equity, Competitors2 | |||||||
Amazon.com Inc. | |||||||
Home Depot Inc. | |||||||
Lowe’s Cos. Inc. | |||||||
Debt to Equity, Sector | |||||||
Consumer Discretionary Distribution & Retail | |||||||
Debt to Equity, Industry | |||||||
Consumer Discretionary |
Based on: 10-K (reporting date: 2025-02-01), 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).
1 2025 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt experienced a significant increase from US$2,237 million in early 2020 to a peak of US$6,083 million in early 2021. Following this peak, total debt declined sharply to US$3,355 million in early 2022 and then stabilized around the US$2,860 million level through early 2025. This pattern indicates a temporary surge in borrowing during 2020–2021, followed by a reduction and subsequent steady management of debt levels.
- Shareholders’ Equity
- Shareholders’ equity showed a steady upward trend over the observed period. Starting at US$5,948 million in early 2020, equity slightly declined to US$5,833 million in early 2021 but then increased consistently each year, reaching US$8,393 million by early 2025. This continuous growth in equity reflects improving retained earnings or capital contributions, strengthening the company’s financial base over time.
- Debt to Equity Ratio
- The debt to equity ratio increased markedly from 0.38 in early 2020 to a peak of 1.04 in early 2021, largely due to the sharp rise in total debt. Subsequently, the ratio decreased steadily to 0.34 by early 2025. This reduction aligns with the decline in total debt and the growth in equity, indicating improved financial leverage and reduced reliance on debt financing relative to shareholders’ equity in the later years.
Debt to Equity (including Operating Lease Liability)
TJX Cos. Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Current portion of long-term debt | |||||||
Long-term debt, excluding current portion | |||||||
Total debt | |||||||
Current portion of operating lease liabilities | |||||||
Long-term operating lease liabilities, excluding current portion | |||||||
Total debt (including operating lease liability) | |||||||
Shareholders’ equity | |||||||
Solvency Ratio | |||||||
Debt to equity (including operating lease liability)1 | |||||||
Benchmarks | |||||||
Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
Amazon.com Inc. | |||||||
Home Depot Inc. | |||||||
Lowe’s Cos. Inc. | |||||||
Debt to Equity (including Operating Lease Liability), Sector | |||||||
Consumer Discretionary Distribution & Retail | |||||||
Debt to Equity (including Operating Lease Liability), Industry | |||||||
Consumer Discretionary |
Based on: 10-K (reporting date: 2025-02-01), 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).
1 2025 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total Debt (including operating lease liability)
- The total debt level displayed volatility over the analyzed period. It initially increased significantly from 11,464 million US dollars in early 2020 to a peak of 15,503 million in early 2021. Subsequently, the debt level decreased and stabilized around the range of approximately 12,500 to 12,800 million US dollars from early 2022 through early 2025, indicating a reduction and management of debt post-peak.
- Shareholders’ Equity
- Shareholders' equity showed a consistent upward trend throughout the period under review. It experienced a minor decline between early 2020 and early 2021 but then steadily increased year over year, rising from 5,948 million US dollars to 8,393 million US dollars by early 2025. This sustained growth reflects increasing net assets and possibly retained earnings accumulation.
- Debt to Equity Ratio (including operating lease liability)
- The debt to equity ratio followed a clear declining trend across the timeframe. Starting at 1.93 in early 2020, the ratio peaked at 2.66 in early 2021, coinciding with the highest total debt level, before progressively decreasing each year to reach 1.52 by early 2025. This pattern suggests an improvement in capital structure, with reduced leverage relative to shareholder equity.
Debt to Capital
Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Current portion of long-term debt | |||||||
Long-term debt, excluding current portion | |||||||
Total debt | |||||||
Shareholders’ equity | |||||||
Total capital | |||||||
Solvency Ratio | |||||||
Debt to capital1 | |||||||
Benchmarks | |||||||
Debt to Capital, Competitors2 | |||||||
Amazon.com Inc. | |||||||
Home Depot Inc. | |||||||
Lowe’s Cos. Inc. | |||||||
Debt to Capital, Sector | |||||||
Consumer Discretionary Distribution & Retail | |||||||
Debt to Capital, Industry | |||||||
Consumer Discretionary |
Based on: 10-K (reporting date: 2025-02-01), 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).
1 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibited significant fluctuations over the analyzed periods. It increased sharply from 2,237 million USD in early 2020 to a peak of 6,083 million USD by January 2021. Subsequently, it decreased substantially to 3,355 million USD in January 2022 and then stabilized around 3,359 million USD in January 2023. Further reduction followed, with debt declining to 2,862 million USD in February 2024 and remaining relatively stable at 2,866 million USD in February 2025.
- Total Capital
- Total capital showed an overall increasing trend throughout the periods. Starting at 8,185 million USD in early 2020, it reached a maximum of 11,915 million USD in January 2021. After a dip to 9,358 million USD in January 2022, it gradually rose again to 9,723 million USD in January 2023, 10,164 million USD in February 2024, and further to 11,259 million USD by February 2025.
- Debt to Capital Ratio
- The debt to capital ratio mirrored the changes in total debt relative to total capital. It escalated sharply from 0.27 in early 2020 to 0.51 in January 2021, reflecting increased leverage amid a rising debt level. Subsequently, the ratio declined to 0.36 in January 2022 and remained around 0.35 in January 2023. The downward trend continued with the ratio falling to 0.28 in February 2024 and further to 0.25 in February 2025, indicating a reduction in leverage over recent years.
Debt to Capital (including Operating Lease Liability)
TJX Cos. Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Current portion of long-term debt | |||||||
Long-term debt, excluding current portion | |||||||
Total debt | |||||||
Current portion of operating lease liabilities | |||||||
Long-term operating lease liabilities, excluding current portion | |||||||
Total debt (including operating lease liability) | |||||||
Shareholders’ equity | |||||||
Total capital (including operating lease liability) | |||||||
Solvency Ratio | |||||||
Debt to capital (including operating lease liability)1 | |||||||
Benchmarks | |||||||
Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
Amazon.com Inc. | |||||||
Home Depot Inc. | |||||||
Lowe’s Cos. Inc. | |||||||
Debt to Capital (including Operating Lease Liability), Sector | |||||||
Consumer Discretionary Distribution & Retail | |||||||
Debt to Capital (including Operating Lease Liability), Industry | |||||||
Consumer Discretionary |
Based on: 10-K (reporting date: 2025-02-01), 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).
1 2025 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= ÷ =
2 Click competitor name to see calculations.
The analysis of the provided financial data reveals several noteworthy trends regarding the company's debt and capital structure over the six-year period ending in early 2025.
- Total Debt (including operating lease liability)
- The total debt increased significantly from approximately 11.5 billion USD in February 2020 to a peak of around 15.5 billion USD by January 2021. Subsequently, total debt declined to about 12.5 billion USD by January 2022 and remained relatively stable through to early 2025, with minor fluctuations observed around the 12.5 to 12.8 billion USD range. This indicates an initial increase in leverage followed by a deliberate reduction and stabilization of the debt level.
- Total Capital (including operating lease liability)
- Total capital followed a somewhat similar pattern, rising from roughly 17.4 billion USD in early 2020 to over 21.3 billion USD in January 2021. After this peak, it decreased to about 18.5 billion USD by early 2022 but then demonstrated a steady upward trend, reaching approximately 21.2 billion USD by February 2025. This overall rising trend suggests strengthening of the capital base after the initial dip.
- Debt to Capital Ratio (including operating lease liability)
- The debt to capital ratio increased from 0.66 in early 2020 to a high of 0.73 in January 2021, reflecting the increased reliance on debt financing during that period. Following this peak, the ratio progressively declined each year, falling to 0.60 by early 2025. This consistent decrease in the ratio indicates a reduction in leverage and an improved balance between debt and capital over time, demonstrating enhanced financial stability and possibly more conservative financial management.
Debt to Assets
Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Current portion of long-term debt | |||||||
Long-term debt, excluding current portion | |||||||
Total debt | |||||||
Total assets | |||||||
Solvency Ratio | |||||||
Debt to assets1 | |||||||
Benchmarks | |||||||
Debt to Assets, Competitors2 | |||||||
Amazon.com Inc. | |||||||
Home Depot Inc. | |||||||
Lowe’s Cos. Inc. | |||||||
Debt to Assets, Sector | |||||||
Consumer Discretionary Distribution & Retail | |||||||
Debt to Assets, Industry | |||||||
Consumer Discretionary |
Based on: 10-K (reporting date: 2025-02-01), 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).
1 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
- The total debt experienced a significant increase from 2,237 million US dollars in early 2020 to 6,083 million US dollars by early 2021. Following this peak, debt levels declined sharply in 2022 to 3,355 million and then stabilized around 3,300 million in 2023. From 2023 through 2025, total debt gradually decreased further, reaching approximately 2,866 million US dollars by early 2025, close to the pre-2021 levels.
- Total Assets
- Total assets showed an overall upward trend. Starting at 24,145 million US dollars in early 2020, assets increased notably to 30,814 million by early 2021. A slight contraction occurred in 2022 and 2023, with values dipping to around 28,461 million and 28,349 million respectively. However, the asset base resumed growth from 2023 onwards, ending at 31,749 million US dollars in early 2025, the highest value in the period under review.
- Debt to Assets Ratio
- The debt to assets ratio followed a notable spike and subsequent decline pattern. It increased from a low of 0.09 in early 2020 to a peak of 0.20 in early 2021, reflecting the sharp rise in debt relative to assets. After 2021, the ratio decreased steadily, reaching 0.12 for both 2022 and 2023, and further declining to 0.10 and 0.09 in 2024 and 2025 respectively. By early 2025, the ratio returned to a level consistent with the start of the observation period, indicating a reduction in leverage relative to assets.
Debt to Assets (including Operating Lease Liability)
TJX Cos. Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Current portion of long-term debt | |||||||
Long-term debt, excluding current portion | |||||||
Total debt | |||||||
Current portion of operating lease liabilities | |||||||
Long-term operating lease liabilities, excluding current portion | |||||||
Total debt (including operating lease liability) | |||||||
Total assets | |||||||
Solvency Ratio | |||||||
Debt to assets (including operating lease liability)1 | |||||||
Benchmarks | |||||||
Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
Amazon.com Inc. | |||||||
Home Depot Inc. | |||||||
Lowe’s Cos. Inc. | |||||||
Debt to Assets (including Operating Lease Liability), Sector | |||||||
Consumer Discretionary Distribution & Retail | |||||||
Debt to Assets (including Operating Lease Liability), Industry | |||||||
Consumer Discretionary |
Based on: 10-K (reporting date: 2025-02-01), 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).
1 2025 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the six-year period.
- Total Debt (Including Operating Lease Liability)
- Total debt exhibited a significant increase from 11,464 million USD in 2020 to a peak of 15,503 million USD in 2021. Following this peak, total debt experienced a decrease and then stabilized around the 12,500 to 12,800 million USD range from 2022 through 2025, indicating effective debt management or reduction efforts after 2021.
- Total Assets
- Total assets showed a generally upward trend over the period. Starting at 24,145 million USD in 2020, assets increased markedly to 30,814 million USD in 2021, then slightly declined to 28,461 million USD in 2022 and 28,349 million USD in 2023. Subsequently, total assets rose again, reaching 31,749 million USD by 2025, implying overall growth and expansion of asset base despite some fluctuations.
- Debt to Assets Ratio (Including Operating Lease Liability)
- The debt to assets ratio declined steadily from 0.47 in 2020 to 0.40 in 2025. This fall reflects an improving balance sheet structure, with a relatively lower proportion of debt compared to assets over time. The ratio peaked at 0.50 in 2021 concurrent with the peak in total debt, but has since decreased consistently, suggesting strengthening financial stability and reduced leverage risk.
In summary, the data suggests that while the company’s total debt surged in 2021, it was followed by a period of debt reduction and stabilization. Meanwhile, total assets have grown overall, resulting in a declining debt-to-assets ratio, indicative of improving financial leverage and a more conservative capital structure in recent years.
Financial Leverage
Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Total assets | |||||||
Shareholders’ equity | |||||||
Solvency Ratio | |||||||
Financial leverage1 | |||||||
Benchmarks | |||||||
Financial Leverage, Competitors2 | |||||||
Amazon.com Inc. | |||||||
Home Depot Inc. | |||||||
Lowe’s Cos. Inc. | |||||||
Financial Leverage, Sector | |||||||
Consumer Discretionary Distribution & Retail | |||||||
Financial Leverage, Industry | |||||||
Consumer Discretionary |
Based on: 10-K (reporting date: 2025-02-01), 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).
1 2025 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total assets
- Total assets demonstrated an overall upward trajectory during the period analyzed. Starting from $24,145 million in early 2020, assets increased significantly to $30,814 million by early 2021. A slight decrease followed over the next two years, reaching $28,349 million in early 2023. However, assets resumed growth in the final two reported years, rising to $31,749 million by early 2025. This pattern suggests periods of both expansion and strategic consolidation or asset optimization.
- Shareholders’ equity
- Shareholders' equity showed a consistent and steady increase throughout the period. Beginning at $5,948 million in early 2020, equity marginally decreased to $5,833 million by early 2021 but then experienced continuous growth every year thereafter, reaching $8,393 million by early 2025. This trend indicates strengthening financial stability and retained earnings enhancement, reflecting positively on the company’s capital structure.
- Financial leverage
- Financial leverage, expressed as a ratio, exhibited a declining trend across the time frame. It peaked at 5.28 in early 2021, indicating a higher reliance on debt financing, then progressively decreased each year to 3.78 by early 2025. This reduction in financial leverage implies a deliberate strategy to reduce debt relative to equity, improving the company's financial risk profile and potentially lowering interest burden.
Interest Coverage
Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Net income | |||||||
Add: Income tax expense | |||||||
Add: Interest expense, excluding capitalized interest | |||||||
Earnings before interest and tax (EBIT) | |||||||
Solvency Ratio | |||||||
Interest coverage1 | |||||||
Benchmarks | |||||||
Interest Coverage, Competitors2 | |||||||
Amazon.com Inc. | |||||||
Home Depot Inc. | |||||||
Lowe’s Cos. Inc. | |||||||
Interest Coverage, Sector | |||||||
Consumer Discretionary Distribution & Retail | |||||||
Interest Coverage, Industry | |||||||
Consumer Discretionary |
Based on: 10-K (reporting date: 2025-02-01), 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).
1 2025 Calculation
Interest coverage = EBIT ÷ Interest expense
= ÷ =
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT figures show a significant fluctuation over the observed periods. The value started at 4465 million USD in early 2020, experienced a pronounced drop to 283 million USD in early 2021, indicating a sharp decline in operating profitability during that interval. Subsequently, EBIT rebounded strongly to 4517 million USD in early 2022 and demonstrated a consistent upward trend through to early 2025, reaching 6559 million USD. This indicates a robust recovery and growth in operating performance after the 2021 low point.
- Interest Expense, Excluding Capitalized Interest
- The interest expense exhibited notable volatility as well. Beginning at 59 million USD in 2020, it surged to 194 million USD in 2021, correlating with the decline in EBIT during the same period. After 2021, interest expense decreased steadily, reaching 76 million USD by 2025. This downward trend in interest payments suggests improved debt servicing conditions or a reduction in debt levels over the later years.
- Interest Coverage Ratio
- The interest coverage ratio, which measures the company's ability to cover interest expenses with EBIT, reflects the operational and financial challenges faced. It was exceptionally high at 75.57 in 2020, plummeted to 1.46 in 2021 — signaling severe stress on interest coverage during that year. Thereafter, the ratio increased markedly, reaching 37.8 in 2022, then progressively rising to 86.3 by 2025. This pattern highlights a significant recovery in the company's financial health and capacity to meet interest obligations comfortably after the downturn in 2021.
- Overall Financial Insight
- The analyzed period reveals a pronounced disruption around 2021, characterized by sharply reduced EBIT and high interest expenses, severely constraining interest coverage. Following this year, the company appears to have undertaken effective measures that led to strong EBIT growth, reduced interest expense, and a substantial restoration of interest coverage. The improving trends suggest enhanced operational efficiency and stronger financial stability through to the most recent reporting period.
Fixed Charge Coverage
Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Net income | |||||||
Add: Income tax expense | |||||||
Add: Interest expense, excluding capitalized interest | |||||||
Earnings before interest and tax (EBIT) | |||||||
Add: Operating lease cost | |||||||
Earnings before fixed charges and tax | |||||||
Interest expense, excluding capitalized interest | |||||||
Operating lease cost | |||||||
Fixed charges | |||||||
Solvency Ratio | |||||||
Fixed charge coverage1 | |||||||
Benchmarks | |||||||
Fixed Charge Coverage, Competitors2 | |||||||
Amazon.com Inc. | |||||||
Home Depot Inc. | |||||||
Lowe’s Cos. Inc. | |||||||
Fixed Charge Coverage, Sector | |||||||
Consumer Discretionary Distribution & Retail | |||||||
Fixed Charge Coverage, Industry | |||||||
Consumer Discretionary |
Based on: 10-K (reporting date: 2025-02-01), 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).
1 2025 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= ÷ =
2 Click competitor name to see calculations.
- Earnings before fixed charges and tax
- The earnings before fixed charges and tax demonstrate a fluctuating but overall upward trend across the reported periods. Beginning at 6,217 million US dollars in early 2020, there is a sharp decline to 2,103 million in early 2021. Following this decrease, earnings recover significantly to 6,423 million in early 2022 and continue to rise steadily, reaching 8,660 million by early 2025. This pattern suggests a strong rebound and sustained growth after the 2021 dip.
- Fixed charges
- Fixed charges show a relatively stable trend with a slight gradual increase over time. Starting at 1,811 million US dollars in early 2020, the value rises modestly to 2,014 million in early 2021 and remains close to this level in subsequent years, peaking at 2,177 million in early 2025. The contained growth in fixed charges contrasts with the more pronounced variability observed in earnings.
- Fixed charge coverage
- The fixed charge coverage ratio reflects the company's ability to cover its fixed charges with earnings before fixed charges and tax. This ratio experiences a significant decline from 3.43 in early 2020 to 1.04 in early 2021, corresponding to the sharp drop in earnings during that period. Subsequently, the ratio recovers strongly, rising to 3.17 in early 2022 and continuing to improve gradually to 3.98 by early 2025. The improving coverage ratio combined with increasing earnings signifies strengthening financial health and greater capacity to meet fixed obligations over time.