Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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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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Profitability Ratios (Summary)
TJX Cos. Inc., profitability ratios
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).
- Gross Profit Margin
- The gross profit margin exhibits fluctuations over the periods analyzed. It initially declined significantly from 28.46% to 23.66% by the second period but then recovered, reaching 28.5% in the third period. The margin experienced minor variations afterward, with a steady increase from 27.61% to 30.6% in the final period, indicating an overall improvement in the company's core profitability.
- Operating Profit Margin
- This margin showed a notable decrease from 10.59% to a low of 1.81% by the second period, reflecting operational challenges or increased expenses. However, it rebounded strongly in subsequent years, stabilizing around the 9.7% to 11.2% range. The gradual improvement suggests better cost control and operational efficiency over time.
- Net Profit Margin
- The net profit margin mirrors a similar pattern, dropping sharply to 0.28% in the second period. It then recovered consistently, climbing to 8.63% by the last period. This upward trend points to enhanced profitability after accounting for all expenses, taxes, and other costs, demonstrating stronger bottom-line performance.
- Return on Equity (ROE)
- ROE experienced a dramatic fall to 1.55% in the second period from an initially high 55.01%, indicating reduced efficiency in generating shareholder returns during that year. Nonetheless, it quickly regained strength, surpassing previous highs by reaching 61.27% before slightly tapering to 57.95%. This suggests the company efficiently leveraged equity capital over most of the observed timeframe.
- Return on Assets (ROA)
- The return on assets saw a steep drop to 0.29% in the second period, reflecting a temporary decline in asset utilization. Subsequently, it steadily improved, peaking at 15.32% in the final period, which signals enhanced effectiveness in deploying assets to generate profits.
Return on Sales
Return on Investment
Gross Profit Margin
TJX Cos. Inc., gross profit margin 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) | |||||||
| Gross earnings | |||||||
| Net sales | |||||||
| Profitability Ratio | |||||||
| Gross profit margin1 | |||||||
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Amazon.com Inc. | |||||||
| Home Depot Inc. | |||||||
| Lowe’s Cos. Inc. | |||||||
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
Gross profit margin = 100 × Gross earnings ÷ Net sales
= 100 × ÷ =
2 Click competitor name to see calculations.
- Gross earnings
- Gross earnings demonstrated a fluctuating pattern over the observed periods. There was a significant decline from 11,871 million USD in early 2020 to 7,603 million USD in early 2021. Subsequently, gross earnings experienced a notable recovery, rising to 13,836 million USD in early 2022 and remaining relatively stable in early 2023. The upward trend continued with increases to 16,266 million USD and 17,248 million USD in early 2024 and 2025, respectively, indicating overall growth after the initial downturn.
- Net sales
- Net sales followed a somewhat similar trajectory to gross earnings. Beginning at 41,717 million USD in early 2020, net sales decreased sharply to 32,137 million USD in early 2021. However, net sales rebounded strongly thereafter with figures increasing to 48,550 million USD in early 2022 and further growing steadily each subsequent year, reaching 54,217 million USD in early 2024 and 56,360 million USD in early 2025. This pattern reflects a recovery and consistent expansion in sales revenue over the latter periods.
- Gross profit margin
- The gross profit margin percentage experienced some volatility but generally exhibited improvement toward the end of the period. It declined from 28.46% in early 2020 to a low of 23.66% in early 2021, before recovering to around initial levels by early 2022 (28.5%) and maintaining a slight decrease to 27.61% in early 2023. The margin then improved noticeably to 30% in early 2024 and further to 30.6% in early 2025. This trend suggests enhanced profitability efficiency in recent years following the earlier decline.
Operating Profit Margin
TJX Cos. Inc., operating profit margin 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) | |||||||
| Operating income | |||||||
| Net sales | |||||||
| Profitability Ratio | |||||||
| Operating profit margin1 | |||||||
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Amazon.com Inc. | |||||||
| Home Depot Inc. | |||||||
| Lowe’s Cos. Inc. | |||||||
| Operating Profit Margin, Sector | |||||||
| Consumer Discretionary Distribution & Retail | |||||||
| Operating Profit Margin, 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
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Sales
- The net sales demonstrate a pattern of initial decline followed by consistent growth. From February 1, 2020, to January 30, 2021, a significant decrease is observed, with sales dropping from $41,717 million to $32,137 million. From that point forward, net sales steadily increase each year, reaching $56,360 million by February 1, 2025, surpassing the initial value recorded in 2020.
- Operating Income
- Operating income reflects notable volatility in the early period followed by a recovery and sustained growth trend. A sharp decline is seen from $4,416 million in February 2020 to $582 million in January 2021. The subsequent years show a robust recovery and consistent increases, culminating in an operating income of $6,302 million by February 2025.
- Operating Profit Margin
- The operating profit margin follows a trend similar to operating income, with a steep drop in 2021 to 1.81% from 10.59% in 2020, indicating a very challenging year. From 2021 onwards, the margin improves progressively, reaching 11.18% by February 2025. This reflects improving operational efficiency and profitability over time.
- Overall Analysis
- Initially, there is a pronounced dip across all key financial metrics in the period ending January 30, 2021, suggesting a period of financial strain or exceptional circumstances impacting the company’s performance. Following this downturn, the data shows a steady and sustained recovery in sales, profitability, and margins, surpassing pre-downturn levels by the final period. This upward trend indicates resilience and effective management in restoring growth and enhancing operational efficiency.
Net Profit Margin
TJX Cos. Inc., net profit margin calculation, comparison to benchmarks
| Feb 1, 2025 | Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | |||||||
| Net sales | |||||||
| Profitability Ratio | |||||||
| Net profit margin1 | |||||||
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Amazon.com Inc. | |||||||
| Home Depot Inc. | |||||||
| Lowe’s Cos. Inc. | |||||||
| Net Profit Margin, Sector | |||||||
| Consumer Discretionary Distribution & Retail | |||||||
| Net Profit Margin, 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
Net profit margin = 100 × Net income ÷ Net sales
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income Trends
- The net income exhibited significant volatility throughout the observed periods. Starting at 3,272 million US dollars in early 2020, it drastically dropped to 90 million in early 2021, then rebounded sharply to 3,283 million in 2022. Subsequently, net income showed continuous improvement, reaching 3,498 million in 2023, 4,474 million in 2024, and finally 4,864 million in 2025. This indicates a strong recovery and steady growth following the steep decline in 2021.
- Net Sales Trends
- Net sales followed a somewhat similar pattern, beginning at 41,717 million US dollars in 2020 and declining to 32,137 million in 2021. This drop was followed by a pronounced recovery, increasing to 48,550 million in 2022 and continuing to rise through 2023 (49,936 million), 2024 (54,217 million), and 2025 (56,360 million). The sales trajectory suggests resilience and expanding revenue generation after the initial downturn.
- Net Profit Margin Analysis
- The net profit margin percentage reflected the effects of the variations in net income and sales. It started at 7.84% in 2020, plummeted to 0.28% in 2021, signifying severely diminished profitability during that period. Margins then improved steadily, reaching 6.76% in 2022, 7.00% in 2023, 8.25% in 2024, and 8.63% in 2025. This progression indicates an enhancement in operational efficiency and profitability over time, surpassing pre-2021 levels by 2024 and 2025.
- Summary
- The financial data reveal an initial period of significant downturn in 2021 across net income, net sales, and profit margins, which was followed by a marked recovery in 2022. This recovery was sustained and strengthened over subsequent years, with progressively increasing sales volumes, improving profitability percentages, and growing net income. These patterns suggest successful adaptation to adverse conditions and effective growth strategies resulting in solid financial health by 2025.
Return on Equity (ROE)
TJX Cos. Inc., ROE 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) | |||||||
| Net income | |||||||
| Shareholders’ equity | |||||||
| Profitability Ratio | |||||||
| ROE1 | |||||||
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Amazon.com Inc. | |||||||
| Home Depot Inc. | |||||||
| Lowe’s Cos. Inc. | |||||||
| ROE, Sector | |||||||
| Consumer Discretionary Distribution & Retail | |||||||
| ROE, 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
ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income
- Net income experienced a significant decline from 3,272 million USD in early 2020 to only 90 million USD by early 2021. Following this sharp downturn, net income rebounded strongly, increasing to 3,283 million USD in early 2022 and continuing a steady upward trend through early 2025, reaching 4,864 million USD. This suggests a rapid recovery after an adverse event or period impacting profitability in 2021, with continued growth thereafter.
- Shareholders’ Equity
- Shareholders’ equity showed relatively modest fluctuations compared to net income. It slightly decreased from 5,948 million USD in early 2020 to 5,833 million USD in early 2021 but then gradually increased each year, reaching 8,393 million USD by early 2025. This steady growth in equity reflects retained earnings accumulation and possibly additional equity injections over the period studied.
- Return on Equity (ROE)
- ROE mirrored the pattern observed in net income, with a dramatic drop from 55.01% in early 2020 to 1.55% in early 2021, indicating a significant reduction in profitability relative to equity. Afterward, ROE recovered impressively to over 54% in the next two years and continued to improve, peaking at 61.27% in early 2024 before a slight decline to 57.95% in early 2025. The high ROE levels from 2022 onward suggest efficient use of equity to generate profits during this recovery phase.
- Overall Analysis
- The data reveals a sharp disruption in financial performance during the period ending in early 2021, likely caused by an extraordinary event affecting earnings. Despite this setback, the company demonstrated a robust recovery trajectory in both profitability and equity metrics. The increasing trend in net income and shareholders’ equity indicates overall growth, while consistently high ROE values post-2021 reflect strong operational efficiency and effective capital utilization. The slight decrease in ROE in the most recent period suggests some moderation in profitability relative to equity, warranting ongoing monitoring.
Return on Assets (ROA)
TJX Cos. Inc., ROA 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) | |||||||
| Net income | |||||||
| Total assets | |||||||
| Profitability Ratio | |||||||
| ROA1 | |||||||
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Amazon.com Inc. | |||||||
| Home Depot Inc. | |||||||
| Lowe’s Cos. Inc. | |||||||
| ROA, Sector | |||||||
| Consumer Discretionary Distribution & Retail | |||||||
| ROA, 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
ROA = 100 × Net income ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income
- The net income shows significant fluctuations over the examined periods. Beginning with a strong figure of 3,272 million USD in 2020, there is a sharp decline to 90 million USD in 2021, indicating an anomalous or challenging year. Subsequently, there is a substantial recovery and upward trend, with net income rising to 3,283 million USD in 2022, further increasing to 3,498 million USD in 2023, and continuing growth reaching 4,474 million USD in 2024 and 4,864 million USD in 2025. This pattern suggests a strong rebound and sustained improvement in profitability after the dip in 2021.
- Total Assets
- Total assets steadily increased from 24,145 million USD in 2020 to 30,814 million USD in 2021, representing a growth of approximately 27.7%. However, this was followed by a modest contraction in 2022 and 2023, with assets decreasing to 28,461 million USD and 28,349 million USD respectively. From 2024 onwards, assets resumed growth, reaching 29,747 million USD and continuing upward to 31,749 million USD in 2025. This indicates cautious asset management with some volatility but overall expansion over the period.
- Return on Assets (ROA)
- The return on assets mirrors the net income volatility. Starting at a robust 13.55% in 2020, ROA plunges dramatically to 0.29% in 2021, reflecting impaired asset productivity or earnings during that year. The subsequent years demonstrate a consistent improvement in asset efficiency, with ROA rebounding to 11.53% in 2022 and further increasing to 12.34% in 2023. Notably, ROA surpasses previous levels in the last two years, reaching 15.04% in 2024 and 15.32% in 2025, which indicates enhanced profitability relative to the asset base and effective utilization of resources.
- Overall Trends and Insights
- The data reveals a period of volatility centered around 2021, with a steep decline in net income and ROA, contrasting with an increase in total assets that year. Since then, both profitability metrics and asset levels have generally recovered and improved, highlighting effective operational and financial management. The upward trajectory in net income and ROA during the latter years suggests improved earnings quality and asset utilization efficiency. The fluctuations may suggest external or internal challenges impacting performance temporarily, but the sustained recovery portrays resilience and growth potential.