Profitability ratios measure the company’s ability to generate profitable sales from its resources (assets).

TJX Cos. Inc., profitability ratios

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.’s gross profit margin deteriorated from 2017 to 2018 and from 2018 to 2019.
Operating profit margin	A profitability ratio calculated as operating income divided by revenue.	TJX Cos. Inc.’s operating profit margin deteriorated from 2017 to 2018 and from 2018 to 2019.
Net profit margin	An indicator of profitability, calculated as net income divided by revenue.	TJX Cos. Inc.’s net profit margin improved from 2017 to 2018 and from 2018 to 2019.

Ratio	Description	The company
ROE	A profitability ratio calculated as net income divided by shareholders’ equity.	TJX Cos. Inc.’s ROE deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.
ROA	A profitability ratio calculated as net income divided by total assets.	TJX Cos. Inc.’s ROA improved from 2017 to 2018 and from 2018 to 2019.

TJX Cos. Inc., gross profit margin calculation, comparison to benchmarks

		Feb 2, 2019	Feb 3, 2018	Jan 28, 2017	Jan 30, 2016	Jan 31, 2015	Feb 1, 2014
	Selected Financial Data (USD $ in thousands)
	Gross earnings
	Net sales
	Ratio
	Gross profit margin¹
	Benchmarks
	Gross Profit Margin, Competitors
	Amazon.com Inc.
	Costco Wholesale Corp.
	eBay Inc.
	Home Depot Inc.
	Lowe’s Cos. Inc.
	Netflix Inc.
	Target Corp.
	Walmart Inc.

2019 Calculations

¹ Gross profit margin = 100 × Gross earnings ÷ Net sales
= 100 × hidden ÷ hidden = hidden

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.’s gross profit margin deteriorated from 2017 to 2018 and from 2018 to 2019.

TJX Cos. Inc., operating profit margin calculation, comparison to benchmarks

		Feb 2, 2019	Feb 3, 2018	Jan 28, 2017	Jan 30, 2016	Jan 31, 2015	Feb 1, 2014
	Selected Financial Data (USD $ in thousands)
	Operating earnings
	Net sales
	Ratio
	Operating profit margin¹
	Benchmarks
	Operating Profit Margin, Competitors
	Amazon.com Inc.
	Costco Wholesale Corp.
	eBay Inc.
	Home Depot Inc.
	Lowe’s Cos. Inc.
	Netflix Inc.
	Target Corp.
	Walmart Inc.
	Operating Profit Margin, Sector
	General Retailers
	Operating Profit Margin, Industry
	Consumer Services

2019 Calculations

¹ Operating profit margin = 100 × Operating earnings ÷ Net sales
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
Operating profit margin	A profitability ratio calculated as operating income divided by revenue.	TJX Cos. Inc.’s operating profit margin deteriorated from 2017 to 2018 and from 2018 to 2019.

TJX Cos. Inc., net profit margin calculation, comparison to benchmarks

		Feb 2, 2019	Feb 3, 2018	Jan 28, 2017	Jan 30, 2016	Jan 31, 2015	Feb 1, 2014
	Selected Financial Data (USD $ in thousands)
	Net income
	Net sales
	Ratio
	Net profit margin¹
	Benchmarks
	Net Profit Margin, Competitors
	Amazon.com Inc.
	Costco Wholesale Corp.
	eBay Inc.
	Home Depot Inc.
	Lowe’s Cos. Inc.
	Netflix Inc.
	Target Corp.
	Walmart Inc.
	Net Profit Margin, Sector
	General Retailers
	Net Profit Margin, Industry
	Consumer Services

2019 Calculations

¹ Net profit margin = 100 × Net income ÷ Net sales
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
Net profit margin	An indicator of profitability, calculated as net income divided by revenue.	TJX Cos. Inc.’s net profit margin improved from 2017 to 2018 and from 2018 to 2019.

TJX Cos. Inc., ROE calculation, comparison to benchmarks

		Feb 2, 2019	Feb 3, 2018	Jan 28, 2017	Jan 30, 2016	Jan 31, 2015	Feb 1, 2014
	Selected Financial Data (USD $ in thousands)
	Net income
	Shareholders’ equity
	Ratio
	ROE¹
	Benchmarks
	ROE, Competitors
	Amazon.com Inc.
	Costco Wholesale Corp.
	eBay Inc.
	Home Depot Inc.
	Lowe’s Cos. Inc.
	Netflix Inc.
	Target Corp.
	Walmart Inc.
	ROE, Sector
	General Retailers
	ROE, Industry
	Consumer Services

2019 Calculations

¹ ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
ROE	A profitability ratio calculated as net income divided by shareholders’ equity.	TJX Cos. Inc.’s ROE deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

TJX Cos. Inc., ROA calculation, comparison to benchmarks

		Feb 2, 2019	Feb 3, 2018	Jan 28, 2017	Jan 30, 2016	Jan 31, 2015	Feb 1, 2014
	Selected Financial Data (USD $ in thousands)
	Net income
	Total assets
	Ratio
	ROA¹
	Benchmarks
	ROA, Competitors
	Amazon.com Inc.
	Costco Wholesale Corp.
	eBay Inc.
	Home Depot Inc.
	Lowe’s Cos. Inc.
	Netflix Inc.
	Target Corp.
	Walmart Inc.
	ROA, Sector
	General Retailers
	ROA, Industry
	Consumer Services

2019 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
ROA	A profitability ratio calculated as net income divided by total assets.	TJX Cos. Inc.’s ROA improved from 2017 to 2018 and from 2018 to 2019.

	TJX Cos. Inc.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

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Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

TJX Cos. Inc. (TJX)

Profitability Analysis