Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Debt Ratios
TJX Cos. Inc., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-08-01), 10-Q (reporting date: 2026-05-02), 10-K (reporting date: 2026-01-31), 10-Q (reporting date: 2025-11-01), 10-Q (reporting date: 2025-08-02), 10-Q (reporting date: 2025-05-03), 10-K (reporting date: 2025-02-01), 10-Q (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 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).
The solvency profile exhibits a consistent and significant trend toward deleveraging from May 2021 through August 2026. There is a systemic reduction in the reliance on borrowed funds relative to equity, total capital, and total assets, indicating a strengthening of the long-term financial position and a reduction in financial risk.
- Equity and Capital Dependency
- A substantial decrease is observed in the debt-to-equity ratio, which fell from 0.87 in May 2021 to 0.27 by August 2026. This downward trajectory suggests a significant increase in the proportion of equity financing relative to debt. Similarly, the debt-to-capital ratio declined steadily from 0.46 to 0.21 over the same period, confirming a reduction in the weight of debt within the total capital structure.
- Impact of Operating Lease Liabilities
- When operating lease liabilities are included, the solvency ratios are notably higher, reflecting the significant impact of lease obligations on the balance sheet. However, these metrics also follow a downward trend. The debt-to-equity ratio including leases decreased from 2.42 to 1.34, and the debt-to-capital ratio including leases shifted from 0.71 to 0.57. This indicates that while leases remain a primary component of the company's liabilities, their relative impact on solvency is diminishing.
- Asset Financing and Financial Leverage
- The debt-to-assets ratio shows a gradual decline from 0.18 to 0.08, indicating that a smaller percentage of total assets is financed through debt. Including lease liabilities, the debt-to-assets ratio moved from 0.49 to 0.39. Furthermore, financial leverage experienced a notable contraction, peaking at 5.02 in July and October 2022 before descending to 3.48 by August 2026. This reduction in leverage suggests a more conservative approach to asset acquisition and a lower risk of insolvency.
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Debt to Equity
TJX Cos. Inc., debt to equity calculation (quarterly data)
| Aug 1, 2026 | May 2, 2026 | Jan 31, 2026 | Nov 1, 2025 | Aug 2, 2025 | May 3, 2025 | Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current portion of long-term debt | 1,000) | 999) | 999) | 999) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 500) | 500) | 500) | 500) | —) | —) | —) | —) | —) | |||||||
| Long-term debt, exclusive of current installments | 1,871) | 1,871) | 1,870) | 1,870) | 2,867) | 2,867) | 2,866) | 2,865) | 2,864) | 2,863) | 2,862) | 2,861) | 2,861) | 2,860) | 2,859) | 2,858) | 2,857) | 3,356) | 3,355) | 3,354) | 3,353) | 5,335) | |||||||
| Total debt | 2,871) | 2,870) | 2,869) | 2,869) | 2,867) | 2,867) | 2,866) | 2,865) | 2,864) | 2,863) | 2,862) | 2,861) | 2,861) | 3,360) | 3,359) | 3,358) | 3,357) | 3,356) | 3,355) | 3,354) | 3,353) | 5,335) | |||||||
| Shareholders’ equity | 10,651) | 10,403) | 10,190) | 9,359) | 8,866) | 8,503) | 8,393) | 8,173) | 7,782) | 7,502) | 7,302) | 6,833) | 6,608) | 6,422) | 6,364) | 5,665) | 5,397) | 5,595) | 6,003) | 6,445) | 6,406) | 6,139) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to equity1 | 0.27 | 0.28 | 0.28 | 0.31 | 0.32 | 0.34 | 0.34 | 0.35 | 0.37 | 0.38 | 0.39 | 0.42 | 0.43 | 0.52 | 0.53 | 0.59 | 0.62 | 0.60 | 0.56 | 0.52 | 0.52 | 0.87 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 0.26 | 0.31 | 0.20 | 0.18 | 0.20 | 0.22 | 0.24 | 0.27 | 0.31 | 0.36 | 0.39 | 0.43 | 0.48 | 0.54 | 0.59 | 0.58 | 0.62 | 0.53 | |||||||
| Home Depot Inc. | 3.18 | 3.86 | 4.35 | 4.62 | 4.91 | 6.57 | 8.04 | 9.43 | 12.61 | 23.53 | 42.25 | 29.32 | 31.54 | 116.72 | 27.65 | 33.10 | 173.11 | — | — | 37.82 | 17.48 | 20.52 | |||||||
| Lowe’s Cos. Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 52.23 | |||||||
Based on: 10-Q (reporting date: 2026-08-01), 10-Q (reporting date: 2026-05-02), 10-K (reporting date: 2026-01-31), 10-Q (reporting date: 2025-11-01), 10-Q (reporting date: 2025-08-02), 10-Q (reporting date: 2025-05-03), 10-K (reporting date: 2025-02-01), 10-Q (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 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).
1 Q2 2027 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 2,871 ÷ 10,651 = 0.27
2 Click competitor name to see calculations.
The financial trajectory from May 2021 through August 2026 indicates a substantial improvement in solvency and a deliberate shift toward a less leveraged capital structure. The Debt to Equity ratio decreased consistently over the period, reflecting a strategic reduction in liabilities paired with significant growth in equity.
- Total Debt Management
- A sharp reduction in total debt occurred between May 1, 2021, and July 31, 2021, falling from 5,335 million to 3,353 million. Debt levels remained remarkably stable until July 29, 2023, when another decrease brought the total to 2,861 million. Following this point, total debt exhibited minimal fluctuation, maintaining a plateau near 2,870 million through August 1, 2026.
- Shareholders' Equity Growth
- Equity experienced a period of contraction and volatility through the first half of 2022, reaching a minimum of 5,397 million by July 30, 2022. However, a consistent upward trend commenced thereafter. Shareholders' equity grew steadily and aggressively, increasing from 5,397 million in mid-2022 to 10,651 million by August 1, 2026, nearly doubling the equity base within four years.
- Debt to Equity Ratio Analysis
- The Debt to Equity ratio mirrors the combined impact of declining debt and rising equity. Starting at 0.87 in May 2021, the ratio dropped precipitously to 0.52 by July 2021. After a brief period of slight elevation between January 2022 and July 2022, where the ratio peaked at 0.62, a sustained downward trend emerged. The ratio concluded the period at 0.27, signifying a significant reduction in financial risk and a strong reliance on internal funding over external debt.
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Debt to Equity (including Operating Lease Liability)
TJX Cos. Inc., debt to equity (including operating lease liability) calculation (quarterly data)
| Aug 1, 2026 | May 2, 2026 | Jan 31, 2026 | Nov 1, 2025 | Aug 2, 2025 | May 3, 2025 | Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current portion of long-term debt | 1,000) | 999) | 999) | 999) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 500) | 500) | 500) | 500) | —) | —) | —) | —) | —) | |||||||
| Long-term debt, exclusive of current installments | 1,871) | 1,871) | 1,870) | 1,870) | 2,867) | 2,867) | 2,866) | 2,865) | 2,864) | 2,863) | 2,862) | 2,861) | 2,861) | 2,860) | 2,859) | 2,858) | 2,857) | 3,356) | 3,355) | 3,354) | 3,353) | 5,335) | |||||||
| Total debt | 2,871) | 2,870) | 2,869) | 2,869) | 2,867) | 2,867) | 2,866) | 2,865) | 2,864) | 2,863) | 2,862) | 2,861) | 2,861) | 3,360) | 3,359) | 3,358) | 3,357) | 3,356) | 3,355) | 3,354) | 3,353) | 5,335) | |||||||
| Current portion of operating lease liabilities | 1,714) | 1,714) | 1,726) | 1,709) | 1,669) | 1,660) | 1,636) | 1,642) | 1,621) | 1,615) | 1,620) | 1,682) | 1,618) | 1,609) | 1,610) | 1,574) | 1,572) | 1,576) | 1,577) | 1,606) | 1,613) | 1,651) | |||||||
| Long-term operating lease liabilities, exclusive of current portion | 9,732) | 9,596) | 8,894) | 8,616) | 8,585) | 8,535) | 8,276) | 8,207) | 8,166) | 8,164) | 8,060) | 7,976) | 8,089) | 7,867) | 7,775) | 7,691) | 7,706) | 7,777) | 7,576) | 7,861) | 7,906) | 7,853) | |||||||
| Total debt (including operating lease liability) | 14,317) | 14,180) | 13,489) | 13,194) | 13,121) | 13,062) | 12,778) | 12,714) | 12,651) | 12,642) | 12,542) | 12,519) | 12,568) | 12,836) | 12,744) | 12,623) | 12,634) | 12,709) | 12,507) | 12,821) | 12,871) | 14,839) | |||||||
| Shareholders’ equity | 10,651) | 10,403) | 10,190) | 9,359) | 8,866) | 8,503) | 8,393) | 8,173) | 7,782) | 7,502) | 7,302) | 6,833) | 6,608) | 6,422) | 6,364) | 5,665) | 5,397) | 5,595) | 6,003) | 6,445) | 6,406) | 6,139) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to equity (including operating lease liability)1 | 1.34 | 1.36 | 1.32 | 1.41 | 1.48 | 1.54 | 1.52 | 1.56 | 1.63 | 1.69 | 1.72 | 1.83 | 1.90 | 2.00 | 2.00 | 2.23 | 2.34 | 2.27 | 2.08 | 1.99 | 2.01 | 2.42 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 0.44 | 0.51 | 0.41 | 0.41 | 0.46 | 0.49 | 0.52 | 0.58 | 0.64 | 0.71 | 0.77 | 0.84 | 0.91 | 1.00 | 1.06 | 1.05 | 1.08 | 0.97 | |||||||
| Home Depot Inc. | 3.77 | 4.55 | 5.10 | 5.40 | 5.75 | 7.70 | 9.38 | 10.95 | 14.62 | 28.03 | 50.04 | 34.44 | 37.07 | 136.54 | 32.24 | 38.30 | 199.91 | — | — | 43.73 | 20.47 | 23.99 | |||||||
| Lowe’s Cos. Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 62.29 | |||||||
Based on: 10-Q (reporting date: 2026-08-01), 10-Q (reporting date: 2026-05-02), 10-K (reporting date: 2026-01-31), 10-Q (reporting date: 2025-11-01), 10-Q (reporting date: 2025-08-02), 10-Q (reporting date: 2025-05-03), 10-K (reporting date: 2025-02-01), 10-Q (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 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).
1 Q2 2027 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= 14,317 ÷ 10,651 = 1.34
2 Click competitor name to see calculations.
The solvency profile demonstrates a significant improvement in the capital structure over the analyzed period. While total debt levels fluctuated and eventually trended upward, a substantial and consistent increase in shareholders' equity led to a marked reduction in the overall debt-to-equity ratio, indicating a strengthened financial position.
- Total Debt Dynamics
- Total debt, including operating lease liabilities, experienced an initial decline from 14,839 million USD in May 2021 to a period of relative stability between January 2022 and February 2024, where values hovered around 12,500 to 12,800 million USD. Starting in February 2024, a gradual upward trajectory is observed, with total debt increasing to 14,317 million USD by August 2026.
- Shareholders' Equity Trends
- Shareholders' equity exhibited initial volatility, reaching a low of 5,397 million USD in July 2022. Following this trough, a sustained and aggressive growth pattern emerged. Equity expanded consistently from October 2022 through August 2026, ending at 10,651 million USD. This growth represents a nearly twofold increase from the 2022 lows, significantly enhancing the equity cushion.
- Debt to Equity Ratio Interpretation
- The debt-to-equity ratio peaked at 2.42 in May 2021 and remained above 2.0 for the first two years of the period. From October 2022 onward, a steady downward trend is evident, with the ratio declining to 1.34 by August 2026. This improvement is primarily driven by the fact that the growth rate of shareholders' equity significantly outpaced the growth rate of total debt, resulting in reduced financial leverage and an improved solvency outlook.
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Debt to Capital
TJX Cos. Inc., debt to capital calculation (quarterly data)
| Aug 1, 2026 | May 2, 2026 | Jan 31, 2026 | Nov 1, 2025 | Aug 2, 2025 | May 3, 2025 | Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current portion of long-term debt | 1,000) | 999) | 999) | 999) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 500) | 500) | 500) | 500) | —) | —) | —) | —) | —) | |||||||
| Long-term debt, exclusive of current installments | 1,871) | 1,871) | 1,870) | 1,870) | 2,867) | 2,867) | 2,866) | 2,865) | 2,864) | 2,863) | 2,862) | 2,861) | 2,861) | 2,860) | 2,859) | 2,858) | 2,857) | 3,356) | 3,355) | 3,354) | 3,353) | 5,335) | |||||||
| Total debt | 2,871) | 2,870) | 2,869) | 2,869) | 2,867) | 2,867) | 2,866) | 2,865) | 2,864) | 2,863) | 2,862) | 2,861) | 2,861) | 3,360) | 3,359) | 3,358) | 3,357) | 3,356) | 3,355) | 3,354) | 3,353) | 5,335) | |||||||
| Shareholders’ equity | 10,651) | 10,403) | 10,190) | 9,359) | 8,866) | 8,503) | 8,393) | 8,173) | 7,782) | 7,502) | 7,302) | 6,833) | 6,608) | 6,422) | 6,364) | 5,665) | 5,397) | 5,595) | 6,003) | 6,445) | 6,406) | 6,139) | |||||||
| Total capital | 13,522) | 13,273) | 13,059) | 12,228) | 11,733) | 11,370) | 11,259) | 11,038) | 10,646) | 10,365) | 10,164) | 9,694) | 9,469) | 9,782) | 9,723) | 9,022) | 8,753) | 8,951) | 9,358) | 9,799) | 9,759) | 11,474) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to capital1 | 0.21 | 0.22 | 0.22 | 0.23 | 0.24 | 0.25 | 0.25 | 0.26 | 0.27 | 0.28 | 0.28 | 0.30 | 0.30 | 0.34 | 0.35 | 0.37 | 0.38 | 0.37 | 0.36 | 0.34 | 0.34 | 0.46 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 0.21 | 0.23 | 0.16 | 0.15 | 0.17 | 0.18 | 0.19 | 0.21 | 0.24 | 0.26 | 0.28 | 0.30 | 0.32 | 0.35 | 0.37 | 0.37 | 0.38 | 0.35 | |||||||
| Home Depot Inc. | 0.76 | 0.79 | 0.81 | 0.82 | 0.83 | 0.87 | 0.89 | 0.90 | 0.93 | 0.96 | 0.98 | 0.97 | 0.97 | 0.99 | 0.97 | 0.97 | 0.99 | 1.04 | 1.04 | 0.97 | 0.95 | 0.95 | |||||||
| Lowe’s Cos. Inc. | 1.25 | 1.32 | 1.33 | 1.35 | 1.49 | 1.62 | 1.67 | 1.61 | 1.62 | 1.69 | 1.72 | 1.73 | 1.68 | 1.67 | 1.72 | 1.62 | 1.41 | 1.31 | 1.24 | 1.06 | 1.01 | 0.98 | |||||||
Based on: 10-Q (reporting date: 2026-08-01), 10-Q (reporting date: 2026-05-02), 10-K (reporting date: 2026-01-31), 10-Q (reporting date: 2025-11-01), 10-Q (reporting date: 2025-08-02), 10-Q (reporting date: 2025-05-03), 10-K (reporting date: 2025-02-01), 10-Q (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 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).
1 Q2 2027 Calculation
Debt to capital = Total debt ÷ Total capital
= 2,871 ÷ 13,522 = 0.21
2 Click competitor name to see calculations.
The solvency position demonstrates a sustained improvement in capital structure efficiency, characterized by a significant reduction in leverage. The overall trajectory indicates a transition toward a more conservative financial footing, as the reliance on debt has diminished relative to the total capital base.
- Total Debt Dynamics
- A substantial reduction in total debt occurred early in the period, falling from 5,335 million US$ in May 2021 to approximately 3,353 million US$ by July 2021. Debt levels remained relatively stable through the first half of 2023, followed by a further decrease to the 2,860 million US$ range in July 2023. This level of indebtedness remained remarkably consistent through August 2026.
- Total Capital Growth
- Total capital exhibited initial volatility, reaching a minimum of 8,753 million US$ in July 2022. Subsequently, a consistent and uninterrupted upward trend is observed, with capital expanding to 13,522 million US$ by August 2026. This growth indicates an increase in the company's overall funding base, likely driven by retained earnings or equity growth.
- Debt to Capital Ratio Trend
- The debt to capital ratio exhibits a clear and steady downward trend, starting at a peak of 0.46 in May 2021 and declining to 0.21 by August 2026. After a period of relative stability between 0.34 and 0.38 throughout 2021 and 2022, the ratio entered a phase of continuous compression starting in early 2023. This decline is the result of the combined effect of reducing absolute debt levels and increasing total capital, signifying a reduced risk profile and enhanced long-term solvency.
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Debt to Capital (including Operating Lease Liability)
TJX Cos. Inc., debt to capital (including operating lease liability) calculation (quarterly data)
| Aug 1, 2026 | May 2, 2026 | Jan 31, 2026 | Nov 1, 2025 | Aug 2, 2025 | May 3, 2025 | Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current portion of long-term debt | 1,000) | 999) | 999) | 999) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 500) | 500) | 500) | 500) | —) | —) | —) | —) | —) | |||||||
| Long-term debt, exclusive of current installments | 1,871) | 1,871) | 1,870) | 1,870) | 2,867) | 2,867) | 2,866) | 2,865) | 2,864) | 2,863) | 2,862) | 2,861) | 2,861) | 2,860) | 2,859) | 2,858) | 2,857) | 3,356) | 3,355) | 3,354) | 3,353) | 5,335) | |||||||
| Total debt | 2,871) | 2,870) | 2,869) | 2,869) | 2,867) | 2,867) | 2,866) | 2,865) | 2,864) | 2,863) | 2,862) | 2,861) | 2,861) | 3,360) | 3,359) | 3,358) | 3,357) | 3,356) | 3,355) | 3,354) | 3,353) | 5,335) | |||||||
| Current portion of operating lease liabilities | 1,714) | 1,714) | 1,726) | 1,709) | 1,669) | 1,660) | 1,636) | 1,642) | 1,621) | 1,615) | 1,620) | 1,682) | 1,618) | 1,609) | 1,610) | 1,574) | 1,572) | 1,576) | 1,577) | 1,606) | 1,613) | 1,651) | |||||||
| Long-term operating lease liabilities, exclusive of current portion | 9,732) | 9,596) | 8,894) | 8,616) | 8,585) | 8,535) | 8,276) | 8,207) | 8,166) | 8,164) | 8,060) | 7,976) | 8,089) | 7,867) | 7,775) | 7,691) | 7,706) | 7,777) | 7,576) | 7,861) | 7,906) | 7,853) | |||||||
| Total debt (including operating lease liability) | 14,317) | 14,180) | 13,489) | 13,194) | 13,121) | 13,062) | 12,778) | 12,714) | 12,651) | 12,642) | 12,542) | 12,519) | 12,568) | 12,836) | 12,744) | 12,623) | 12,634) | 12,709) | 12,507) | 12,821) | 12,871) | 14,839) | |||||||
| Shareholders’ equity | 10,651) | 10,403) | 10,190) | 9,359) | 8,866) | 8,503) | 8,393) | 8,173) | 7,782) | 7,502) | 7,302) | 6,833) | 6,608) | 6,422) | 6,364) | 5,665) | 5,397) | 5,595) | 6,003) | 6,445) | 6,406) | 6,139) | |||||||
| Total capital (including operating lease liability) | 24,968) | 24,583) | 23,679) | 22,553) | 21,987) | 21,565) | 21,171) | 20,887) | 20,433) | 20,144) | 19,844) | 19,352) | 19,176) | 19,258) | 19,108) | 18,288) | 18,031) | 18,304) | 18,510) | 19,266) | 19,278) | 20,978) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to capital (including operating lease liability)1 | 0.57 | 0.58 | 0.57 | 0.59 | 0.60 | 0.61 | 0.60 | 0.61 | 0.62 | 0.63 | 0.63 | 0.65 | 0.66 | 0.67 | 0.67 | 0.69 | 0.70 | 0.69 | 0.68 | 0.67 | 0.67 | 0.71 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 0.30 | 0.34 | 0.29 | 0.29 | 0.31 | 0.33 | 0.34 | 0.37 | 0.39 | 0.42 | 0.43 | 0.46 | 0.48 | 0.50 | 0.51 | 0.51 | 0.52 | 0.49 | |||||||
| Home Depot Inc. | 0.79 | 0.82 | 0.84 | 0.84 | 0.85 | 0.89 | 0.90 | 0.92 | 0.94 | 0.97 | 0.98 | 0.97 | 0.97 | 0.99 | 0.97 | 0.97 | 1.00 | 1.04 | 1.04 | 0.98 | 0.95 | 0.96 | |||||||
| Lowe’s Cos. Inc. | 1.22 | 1.28 | 1.29 | 1.30 | 1.41 | 1.52 | 1.56 | 1.51 | 1.52 | 1.57 | 1.60 | 1.61 | 1.57 | 1.57 | 1.60 | 1.51 | 1.34 | 1.26 | 1.20 | 1.05 | 1.01 | 0.98 | |||||||
Based on: 10-Q (reporting date: 2026-08-01), 10-Q (reporting date: 2026-05-02), 10-K (reporting date: 2026-01-31), 10-Q (reporting date: 2025-11-01), 10-Q (reporting date: 2025-08-02), 10-Q (reporting date: 2025-05-03), 10-K (reporting date: 2025-02-01), 10-Q (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 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).
1 Q2 2027 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 14,317 ÷ 24,968 = 0.57
2 Click competitor name to see calculations.
The solvency profile demonstrates a sustained improvement in leverage over the analyzed period, characterized by a consistent reduction in the debt-to-capital ratio despite fluctuations in absolute debt levels.
- Debt to Capital Ratio Trajectory
- The ratio began at 0.71 in May 2021 and declined to 0.57 by August 2026. An initial period of relative stability was observed between May 2021 and July 2023, with the ratio fluctuating within a narrow band of 0.65 to 0.71. A clear and steady downward trend emerged from October 2023 onward, indicating a strategic reduction in the proportion of debt relative to total capital.
- Total Debt Evolution
- Total debt, including operating lease liabilities, experienced an initial sharp contraction from 14,839 million USD in May 2021 to approximately 12,500 million USD by early 2022. This level remained remarkably stable through February 2024. However, from May 2024 through August 2026, a gradual increase in total debt is observed, with the balance rising to 14,317 million USD.
- Total Capital Growth
- Total capital exhibited a U-shaped trend, decreasing from 20,978 million USD in May 2021 to a trough of 18,031 million USD in July 2022. Following this low point, the capital base entered a period of consistent expansion, growing to 24,968 million USD by August 2026. This growth in total capital accelerated in the final quarters of the analyzed period.
- Solvency Analysis
- The simultaneous increase in total debt and the decrease in the debt-to-capital ratio during the latter half of the period indicates that total capital grew at a significantly faster rate than total debt. This divergence suggests a strengthening of the equity position or other non-debt capital components, resulting in a more conservative leverage profile and an enhanced solvency position by August 2026.
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Debt to Assets
TJX Cos. Inc., debt to assets calculation (quarterly data)
| Aug 1, 2026 | May 2, 2026 | Jan 31, 2026 | Nov 1, 2025 | Aug 2, 2025 | May 3, 2025 | Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current portion of long-term debt | 1,000) | 999) | 999) | 999) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 500) | 500) | 500) | 500) | —) | —) | —) | —) | —) | |||||||
| Long-term debt, exclusive of current installments | 1,871) | 1,871) | 1,870) | 1,870) | 2,867) | 2,867) | 2,866) | 2,865) | 2,864) | 2,863) | 2,862) | 2,861) | 2,861) | 2,860) | 2,859) | 2,858) | 2,857) | 3,356) | 3,355) | 3,354) | 3,353) | 5,335) | |||||||
| Total debt | 2,871) | 2,870) | 2,869) | 2,869) | 2,867) | 2,867) | 2,866) | 2,865) | 2,864) | 2,863) | 2,862) | 2,861) | 2,861) | 3,360) | 3,359) | 3,358) | 3,357) | 3,356) | 3,355) | 3,354) | 3,353) | 5,335) | |||||||
| Total assets | 37,115) | 36,158) | 35,767) | 35,188) | 32,885) | 31,858) | 31,749) | 32,436) | 30,555) | 29,679) | 29,747) | 30,351) | 28,922) | 28,681) | 28,349) | 28,428) | 27,091) | 27,710) | 28,461) | 30,071) | 28,783) | 30,301) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to assets1 | 0.08 | 0.08 | 0.08 | 0.08 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.10 | 0.10 | 0.09 | 0.10 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | 0.11 | 0.12 | 0.18 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 0.13 | 0.15 | 0.10 | 0.09 | 0.10 | 0.11 | 0.11 | 0.12 | 0.13 | 0.15 | 0.15 | 0.16 | 0.17 | 0.18 | 0.19 | 0.19 | 0.19 | 0.17 | |||||||
| Home Depot Inc. | 0.48 | 0.50 | 0.53 | 0.53 | 0.52 | 0.53 | 0.56 | 0.56 | 0.58 | 0.54 | 0.58 | 0.55 | 0.55 | 0.55 | 0.57 | 0.56 | 0.54 | 0.54 | 0.56 | 0.54 | 0.51 | 0.49 | |||||||
| Lowe’s Cos. Inc. | 0.67 | 0.69 | 0.74 | 0.75 | 0.74 | 0.77 | 0.82 | 0.79 | 0.80 | 0.79 | 0.86 | 0.84 | 0.82 | 0.80 | 0.78 | 0.71 | 0.62 | 0.58 | 0.55 | 0.53 | 0.49 | 0.45 | |||||||
Based on: 10-Q (reporting date: 2026-08-01), 10-Q (reporting date: 2026-05-02), 10-K (reporting date: 2026-01-31), 10-Q (reporting date: 2025-11-01), 10-Q (reporting date: 2025-08-02), 10-Q (reporting date: 2025-05-03), 10-K (reporting date: 2025-02-01), 10-Q (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 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).
1 Q2 2027 Calculation
Debt to assets = Total debt ÷ Total assets
= 2,871 ÷ 37,115 = 0.08
2 Click competitor name to see calculations.
The solvency profile demonstrates a consistent strengthening of the balance sheet, characterized by a systematic reduction in total debt and a simultaneous expansion of the asset base. The debt-to-assets ratio experienced a significant overall decline, moving from a peak of 0.18 in May 2021 to a low of 0.08 by August 2026.
- Total Debt Dynamics
- A substantial reduction in total debt occurred between May 2021 and July 2021, where liabilities decreased from 5,335 million US$ to 3,353 million US$. Following a period of stability, a second notable reduction took place between April 2023 and July 2023, bringing the debt level down to approximately 2,861 million US$. From February 2024 through August 2026, total debt remained remarkably stable, fluctuating minimally between 2,862 million US$ and 2,871 million US$.
- Asset Base Evolution
- Total assets exhibited volatility in the early stages, fluctuating between 27,091 million US$ and 30,301 million US$ from 2021 through early 2023. A sustained growth trajectory emerged starting in late 2023, with assets increasing from 30,351 million US$ in July 2023 to 37,115 million US$ by August 2026, indicating a strong expansion of the resource base.
- Debt to Assets Ratio Interpretation
- The debt-to-assets ratio reflects the combined effect of debt reduction and asset growth. The initial drop from 0.18 to 0.12 in mid-2021 established a lower leverage baseline. The ratio remained stable at approximately 0.12 until mid-2023, after which it entered a gradual downward trend. By the conclusion of the analyzed period, the ratio settled at 0.08, signifying that debt represents a significantly smaller portion of total assets compared to the start of the period.
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Debt to Assets (including Operating Lease Liability)
TJX Cos. Inc., debt to assets (including operating lease liability) calculation (quarterly data)
| Aug 1, 2026 | May 2, 2026 | Jan 31, 2026 | Nov 1, 2025 | Aug 2, 2025 | May 3, 2025 | Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current portion of long-term debt | 1,000) | 999) | 999) | 999) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 500) | 500) | 500) | 500) | —) | —) | —) | —) | —) | |||||||
| Long-term debt, exclusive of current installments | 1,871) | 1,871) | 1,870) | 1,870) | 2,867) | 2,867) | 2,866) | 2,865) | 2,864) | 2,863) | 2,862) | 2,861) | 2,861) | 2,860) | 2,859) | 2,858) | 2,857) | 3,356) | 3,355) | 3,354) | 3,353) | 5,335) | |||||||
| Total debt | 2,871) | 2,870) | 2,869) | 2,869) | 2,867) | 2,867) | 2,866) | 2,865) | 2,864) | 2,863) | 2,862) | 2,861) | 2,861) | 3,360) | 3,359) | 3,358) | 3,357) | 3,356) | 3,355) | 3,354) | 3,353) | 5,335) | |||||||
| Current portion of operating lease liabilities | 1,714) | 1,714) | 1,726) | 1,709) | 1,669) | 1,660) | 1,636) | 1,642) | 1,621) | 1,615) | 1,620) | 1,682) | 1,618) | 1,609) | 1,610) | 1,574) | 1,572) | 1,576) | 1,577) | 1,606) | 1,613) | 1,651) | |||||||
| Long-term operating lease liabilities, exclusive of current portion | 9,732) | 9,596) | 8,894) | 8,616) | 8,585) | 8,535) | 8,276) | 8,207) | 8,166) | 8,164) | 8,060) | 7,976) | 8,089) | 7,867) | 7,775) | 7,691) | 7,706) | 7,777) | 7,576) | 7,861) | 7,906) | 7,853) | |||||||
| Total debt (including operating lease liability) | 14,317) | 14,180) | 13,489) | 13,194) | 13,121) | 13,062) | 12,778) | 12,714) | 12,651) | 12,642) | 12,542) | 12,519) | 12,568) | 12,836) | 12,744) | 12,623) | 12,634) | 12,709) | 12,507) | 12,821) | 12,871) | 14,839) | |||||||
| Total assets | 37,115) | 36,158) | 35,767) | 35,188) | 32,885) | 31,858) | 31,749) | 32,436) | 30,555) | 29,679) | 29,747) | 30,351) | 28,922) | 28,681) | 28,349) | 28,428) | 27,091) | 27,710) | 28,461) | 30,071) | 28,783) | 30,301) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to assets (including operating lease liability)1 | 0.39 | 0.39 | 0.38 | 0.37 | 0.40 | 0.41 | 0.40 | 0.39 | 0.41 | 0.43 | 0.42 | 0.41 | 0.43 | 0.45 | 0.45 | 0.44 | 0.47 | 0.46 | 0.44 | 0.43 | 0.45 | 0.49 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 0.22 | 0.25 | 0.21 | 0.21 | 0.22 | 0.23 | 0.24 | 0.26 | 0.27 | 0.29 | 0.29 | 0.32 | 0.32 | 0.33 | 0.33 | 0.34 | 0.34 | 0.32 | |||||||
| Home Depot Inc. | 0.57 | 0.59 | 0.62 | 0.62 | 0.61 | 0.62 | 0.65 | 0.65 | 0.67 | 0.64 | 0.68 | 0.65 | 0.65 | 0.65 | 0.66 | 0.65 | 0.62 | 0.62 | 0.64 | 0.62 | 0.60 | 0.58 | |||||||
| Lowe’s Cos. Inc. | 0.75 | 0.77 | 0.83 | 0.84 | 0.84 | 0.86 | 0.92 | 0.89 | 0.90 | 0.89 | 0.96 | 0.94 | 0.91 | 0.88 | 0.87 | 0.81 | 0.72 | 0.68 | 0.66 | 0.63 | 0.58 | 0.54 | |||||||
Based on: 10-Q (reporting date: 2026-08-01), 10-Q (reporting date: 2026-05-02), 10-K (reporting date: 2026-01-31), 10-Q (reporting date: 2025-11-01), 10-Q (reporting date: 2025-08-02), 10-Q (reporting date: 2025-05-03), 10-K (reporting date: 2025-02-01), 10-Q (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 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).
1 Q2 2027 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 14,317 ÷ 37,115 = 0.39
2 Click competitor name to see calculations.
The solvency profile exhibits a general improvement over the analyzed period, characterized by a reduction in the debt-to-assets ratio. While both total debt and total assets experienced fluctuations, the growth in the asset base outpaced the increase in liabilities in the later stages of the period, resulting in a strengthened solvency position.
- Total Debt Trends
- Total debt, inclusive of operating lease liabilities, began at 14,839 million US dollars in May 2021 and saw an initial decline to a low of 12,507 million US dollars by January 2022. For several years, debt levels remained relatively stable, fluctuating within a narrow range between approximately 12,500 million and 12,800 million US dollars. A gradual upward trend emerged starting in February 2024, with debt increasing to 14,317 million US dollars by August 2026.
- Total Asset Expansion
- The asset base showed significant volatility in the early years, dipping from 30,301 million US dollars in May 2021 to a low of 27,091 million US dollars in July 2022. However, a consistent growth trajectory was established from late 2023 onward. Total assets rose from 30,351 million US dollars in October 2023 to 37,115 million US dollars by August 2026, representing a substantial expansion of the company's resource base.
- Debt to Assets Ratio Analysis
- The debt-to-assets ratio declined from a peak of 0.49 in May 2021 to 0.39 by August 2026. The ratio remained volatile between 0.41 and 0.47 during the first half of the period. A sustained downward trend became evident after October 2023, reaching a minimum of 0.37 in November 2025. This decline indicates that a smaller proportion of total assets is financed through debt and lease liabilities, suggesting a reduction in financial leverage and an increase in long-term solvency.
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Financial Leverage
TJX Cos. Inc., financial leverage calculation (quarterly data)
| Aug 1, 2026 | May 2, 2026 | Jan 31, 2026 | Nov 1, 2025 | Aug 2, 2025 | May 3, 2025 | Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Total assets | 37,115) | 36,158) | 35,767) | 35,188) | 32,885) | 31,858) | 31,749) | 32,436) | 30,555) | 29,679) | 29,747) | 30,351) | 28,922) | 28,681) | 28,349) | 28,428) | 27,091) | 27,710) | 28,461) | 30,071) | 28,783) | 30,301) | |||||||
| Shareholders’ equity | 10,651) | 10,403) | 10,190) | 9,359) | 8,866) | 8,503) | 8,393) | 8,173) | 7,782) | 7,502) | 7,302) | 6,833) | 6,608) | 6,422) | 6,364) | 5,665) | 5,397) | 5,595) | 6,003) | 6,445) | 6,406) | 6,139) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Financial leverage1 | 3.48 | 3.48 | 3.51 | 3.76 | 3.71 | 3.75 | 3.78 | 3.97 | 3.93 | 3.96 | 4.07 | 4.44 | 4.38 | 4.47 | 4.45 | 5.02 | 5.02 | 4.95 | 4.74 | 4.67 | 4.49 | 4.94 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 1.99 | 2.07 | 1.99 | 1.97 | 2.04 | 2.10 | 2.19 | 2.26 | 2.35 | 2.45 | 2.61 | 2.66 | 2.83 | 3.01 | 3.17 | 3.12 | 3.19 | 3.07 | |||||||
| Home Depot Inc. | 6.58 | 7.78 | 8.20 | 8.77 | 9.38 | 12.46 | 14.48 | 16.81 | 21.91 | 43.53 | 73.30 | 52.85 | 57.22 | 211.01 | 48.94 | 59.22 | 319.94 | — | — | 70.56 | 34.20 | 41.51 | |||||||
| Lowe’s Cos. Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 115.06 | |||||||
Based on: 10-Q (reporting date: 2026-08-01), 10-Q (reporting date: 2026-05-02), 10-K (reporting date: 2026-01-31), 10-Q (reporting date: 2025-11-01), 10-Q (reporting date: 2025-08-02), 10-Q (reporting date: 2025-05-03), 10-K (reporting date: 2025-02-01), 10-Q (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 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).
1 Q2 2027 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 37,115 ÷ 10,651 = 3.48
2 Click competitor name to see calculations.
The financial leverage profile reveals a strategic shift toward a more conservative capital structure over the analyzed period. While the company experienced initial volatility in its leverage levels between 2021 and 2022, a sustained and consistent reduction in the leverage ratio is evident from early 2023 through mid-2026.
- Asset and Equity Growth Trends
- Total assets exhibited a fluctuating pattern initially, reaching a low of 27,091 million US dollars in July 2022 before embarking on a steady upward trajectory to 37,115 million US dollars by August 2026. Parallel to this, shareholders' equity demonstrated significant growth, increasing from 6,139 million US dollars in May 2021 to 10,651 million US dollars in August 2026. The growth in equity has outpaced the growth in total assets over the long term, contributing to a lower overall leverage ratio.
- Financial Leverage Ratio Dynamics
- The financial leverage ratio peaked at 5.02 in July and October 2022, indicating a period of higher reliance on liabilities relative to equity. Following this peak, a definitive downward trend emerged. The ratio declined from 4.45 in January 2023 to 3.48 by August 2026. This represents a substantial reduction in the multiplier effect of the company's assets, signaling a transition toward a less leveraged balance sheet.
- Solvency and Risk Implications
- The consistent decrease in the leverage ratio from 5.02 to 3.48 suggests an improvement in long-term solvency. By increasing the proportion of equity used to finance its asset base, the organization has reduced its financial risk and decreased its dependency on external debt. The alignment of growing total assets with an even more robust growth in shareholders' equity indicates a strengthened financial position and enhanced capacity to absorb potential losses.
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