Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
TJX Cos. Inc., profitability ratios
Based on: 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | TJX Cos. Inc. gross profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | TJX Cos. Inc. operating profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | TJX Cos. Inc. net profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | TJX Cos. Inc. ROE deteriorated from 2019 to 2020 and from 2020 to 2021. |
| ROA | A profitability ratio calculated as net income divided by total assets. | TJX Cos. Inc. ROA deteriorated from 2019 to 2020 and from 2020 to 2021. |
Gross Profit Margin
TJX Cos. Inc., gross profit margin calculation, comparison to benchmarks
| Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | Jan 30, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Gross earnings | 7,603,147 | 11,871,197 | 11,141,757 | 10,362,497 | 9,617,990 | 8,910,415 | |
| Net sales | 32,136,962 | 41,716,977 | 38,972,934 | 35,864,664 | 33,183,744 | 30,944,938 | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 23.66% | 28.46% | 28.59% | 28.89% | 28.98% | 28.79% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Amazon.com Inc. | — | 39.57% | 40.99% | 40.25% | 37.07% | 35.09% | |
| Booking Holdings Inc. | — | 100.00% | 100.00% | 100.00% | 98.02% | 96.01% | |
| Home Depot Inc. | 33.95% | 34.09% | 34.34% | 34.05% | 34.16% | 34.19% | |
| Lowe’s Cos. Inc. | 33.01% | 31.80% | 32.12% | 34.11% | 34.55% | 34.82% | |
| Target Corp. | 28.38% | 28.87% | 28.39% | 28.87% | 29.68% | 29.53% | |
Based on: 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30).
1 2021 Calculation
Gross profit margin = 100 × Gross earnings ÷ Net sales
= 100 × 7,603,147 ÷ 32,136,962 = 23.66%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | TJX Cos. Inc. gross profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Operating Profit Margin
TJX Cos. Inc., operating profit margin calculation, comparison to benchmarks
| Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | Jan 30, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Operating income | 582,230 | 4,416,209 | 4,218,193 | 3,888,176 | 3,849,523 | 3,704,700 | |
| Net sales | 32,136,962 | 41,716,977 | 38,972,934 | 35,864,664 | 33,183,744 | 30,944,938 | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 1.81% | 10.59% | 10.82% | 10.84% | 11.60% | 11.97% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Amazon.com Inc. | — | 5.93% | 5.18% | 5.33% | 2.31% | 3.08% | |
| Booking Holdings Inc. | — | -9.28% | 35.48% | 36.77% | 35.79% | 27.05% | |
| Home Depot Inc. | 13.84% | 14.37% | 14.35% | 14.55% | 14.19% | 13.30% | |
| Lowe’s Cos. Inc. | 10.77% | 8.75% | 5.63% | 9.60% | 8.99% | 8.41% | |
| Target Corp. | 7.08% | 6.04% | 5.52% | 6.00% | 7.15% | 7.49% | |
| Operating Profit Margin, Sector | |||||||
| Retailing | — | 7.71% | 8.12% | 9.00% | 8.11% | 8.29% | |
| Operating Profit Margin, Industry | |||||||
| Consumer Discretionary | — | 6.77% | 7.42% | 7.88% | 8.30% | 8.19% | |
Based on: 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30).
1 2021 Calculation
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 582,230 ÷ 32,136,962 = 1.81%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | TJX Cos. Inc. operating profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Net Profit Margin
TJX Cos. Inc., net profit margin calculation, comparison to benchmarks
| Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | Jan 30, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net income | 90,470 | 3,272,193 | 3,059,798 | 2,607,948 | 2,298,234 | 2,277,658 | |
| Net sales | 32,136,962 | 41,716,977 | 38,972,934 | 35,864,664 | 33,183,744 | 30,944,938 | |
| Profitability Ratio | |||||||
| Net profit margin1 | 0.28% | 7.84% | 7.85% | 7.27% | 6.93% | 7.36% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Amazon.com Inc. | — | 5.53% | 4.13% | 4.33% | 1.71% | 1.74% | |
| Booking Holdings Inc. | — | 0.87% | 32.29% | 27.52% | 18.46% | 19.87% | |
| Home Depot Inc. | 9.74% | 10.20% | 10.28% | 8.55% | 8.41% | 7.92% | |
| Lowe’s Cos. Inc. | 6.51% | 5.93% | 3.25% | 5.02% | 4.76% | 4.31% | |
| Target Corp. | 4.73% | 4.25% | 3.95% | 4.08% | 3.94% | 4.56% | |
| Net Profit Margin, Sector | |||||||
| Retailing | — | 6.26% | 6.10% | 6.04% | 4.74% | 4.94% | |
| Net Profit Margin, Industry | |||||||
| Consumer Discretionary | — | 5.58% | 5.74% | 6.02% | 4.32% | 5.66% | |
Based on: 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30).
1 2021 Calculation
Net profit margin = 100 × Net income ÷ Net sales
= 100 × 90,470 ÷ 32,136,962 = 0.28%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | TJX Cos. Inc. net profit margin ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Return on Equity (ROE)
TJX Cos. Inc., ROE calculation, comparison to benchmarks
| Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | Jan 30, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net income | 90,470 | 3,272,193 | 3,059,798 | 2,607,948 | 2,298,234 | 2,277,658 | |
| Shareholders’ equity | 5,832,684 | 5,948,212 | 5,048,606 | 5,148,309 | 4,510,599 | 4,307,075 | |
| Profitability Ratio | |||||||
| ROE1 | 1.55% | 55.01% | 60.61% | 50.66% | 50.95% | 52.88% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Amazon.com Inc. | — | 22.84% | 18.67% | 23.13% | 10.95% | 12.29% | |
| Booking Holdings Inc. | — | 1.21% | 82.00% | 45.51% | 20.79% | 21.74% | |
| Home Depot Inc. | 390.00% | — | — | 593.54% | 183.64% | 110.97% | |
| Lowe’s Cos. Inc. | 406.05% | 217.09% | 63.50% | 58.69% | 48.07% | 33.26% | |
| Target Corp. | 30.25% | 27.73% | 26.00% | 25.06% | 24.99% | 25.96% | |
| ROE, Sector | |||||||
| Retailing | — | 37.82% | 41.68% | 41.41% | 32.91% | 32.65% | |
| ROE, Industry | |||||||
| Consumer Discretionary | — | 28.02% | 34.17% | 34.03% | 23.10% | 28.77% | |
Based on: 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30).
1 2021 Calculation
ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 90,470 ÷ 5,832,684 = 1.55%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | TJX Cos. Inc. ROE deteriorated from 2019 to 2020 and from 2020 to 2021. |
Return on Assets (ROA)
TJX Cos. Inc., ROA calculation, comparison to benchmarks
| Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | Jan 30, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net income | 90,470 | 3,272,193 | 3,059,798 | 2,607,948 | 2,298,234 | 2,277,658 | |
| Total assets | 30,813,555 | 24,145,003 | 14,326,029 | 14,058,015 | 12,883,808 | 11,499,482 | |
| Profitability Ratio | |||||||
| ROA1 | 0.29% | 13.55% | 21.36% | 18.55% | 17.84% | 19.81% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Amazon.com Inc. | — | 6.64% | 5.14% | 6.19% | 2.31% | 2.84% | |
| Booking Holdings Inc. | — | 0.27% | 22.73% | 17.62% | 9.20% | 10.76% | |
| Home Depot Inc. | 18.23% | 21.94% | 25.27% | 19.38% | 18.52% | 16.47% | |
| Lowe’s Cos. Inc. | 12.49% | 10.85% | 6.71% | 9.77% | 8.99% | 8.14% | |
| Target Corp. | 8.52% | 7.67% | 7.11% | 7.52% | 7.31% | 8.35% | |
| ROA, Sector | |||||||
| Retailing | — | 8.68% | 9.42% | 9.96% | 7.54% | 8.61% | |
| ROA, Industry | |||||||
| Consumer Discretionary | — | 4.92% | 5.59% | 6.01% | 4.16% | 5.70% | |
Based on: 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30).
1 2021 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 90,470 ÷ 30,813,555 = 0.29%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | TJX Cos. Inc. ROA deteriorated from 2019 to 2020 and from 2020 to 2021. |