Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
TJX Cos. Inc., profitability 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 analysis of profitability ratios reveals a consistent upward trajectory in margin efficiency and asset utilization over the observed period, characterized by steady expansion in both gross and net profitability.
- Margin Performance
- Gross profit margins exhibited a gradual climb from 27.61% in May 2021, maintaining a relatively stable range before accelerating from February 2024 to reach 32.00% by August 2026. This expansion in gross profitability is mirrored in the operating profit margin, which rose from 7.05% to 12.69% over the same period, suggesting effective cost management and operational scaling. Net profit margins followed a similar positive trend, increasing from 4.00% in May 2021 to 9.73% by August 2026, indicating a strengthening of bottom-line performance.
- Capital Efficiency and Asset Utilization
- Return on assets (ROA) demonstrates a strong and sustained increase, rising from 4.99% in early 2021 to 16.35% by August 2026, reflecting significantly improved efficiency in utilizing the asset base to generate earnings. Return on equity (ROE) followed a distinct pattern; after a rapid surge from 24.63% in May 2021 to a peak of 62.26% in July 2022, the ratio entered a phase of gradual normalization, stabilizing within the 54% to 57% range throughout 2025 and 2026.
- Profitability Correlations
- A strong positive correlation is observed between the expansion of gross margins and the subsequent improvement in operating and net margins. While ROA continued to grow in alignment with these margins, the stabilization of ROE suggests a shift in the capital structure or a normalization of equity returns following the significant spike observed in 2022.
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Return on Sales
Return on Investment
Gross Profit Margin
TJX Cos. Inc., gross profit margin 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) | |||||||||||||||||||||||||||||
| Gross earnings (loss) | 5,072) | 4,480) | 5,476) | 4,927) | 4,425) | 3,865) | 4,979) | 4,441) | 4,088) | 3,740) | 4,883) | 4,126) | 3,848) | 3,409) | 3,789) | 3,544) | 3,271) | 3,183) | 3,760) | 3,696) | 3,549) | 2,831) | |||||||
| Net sales | 15,180) | 14,323) | 17,743) | 15,117) | 14,401) | 13,111) | 16,350) | 14,063) | 13,468) | 12,479) | 16,411) | 13,265) | 12,758) | 11,783) | 14,520) | 12,166) | 11,843) | 11,406) | 13,854) | 12,532) | 12,077) | 10,087) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Gross profit margin1 | 32.00% | 31.35% | 30.96% | 30.85% | 30.57% | 30.48% | 30.60% | 30.40% | 30.27% | 30.22% | 30.00% | 28.99% | 28.48% | 27.85% | 27.61% | 27.92% | 28.03% | 28.45% | 28.50% | 28.78% | 28.91% | 27.61% | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 50.77% | 50.60% | 50.29% | 50.05% | 49.61% | 49.16% | 48.85% | 48.41% | 48.04% | 47.59% | 46.98% | 46.24% | 45.53% | 44.73% | 43.81% | 43.04% | 42.65% | 42.14% | |||||||
| Home Depot Inc. | 33.21% | 33.13% | 33.32% | 33.36% | 33.35% | 33.34% | 33.42% | 33.50% | 33.60% | 33.48% | 33.38% | 33.42% | 33.49% | 33.51% | 33.53% | 33.51% | 33.53% | 33.58% | 33.63% | 33.72% | 33.72% | 33.94% | |||||||
| Lowe’s Cos. Inc. | 33.08% | 33.29% | 33.48% | 33.59% | 33.46% | 33.36% | 33.32% | 33.21% | 33.21% | 33.27% | 33.39% | 33.33% | 33.25% | 33.14% | 33.23% | 33.38% | 33.33% | 33.49% | 33.30% | 33.06% | 32.97% | 33.06% | |||||||
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
Gross profit margin = 100
× (Gross earnings (loss)Q2 2027
+ Gross earnings (loss)Q1 2027
+ Gross earnings (loss)Q4 2026
+ Gross earnings (loss)Q3 2026)
÷ (Net salesQ2 2027
+ Net salesQ1 2027
+ Net salesQ4 2026
+ Net salesQ3 2026)
= 100 × (5,072 + 4,480 + 5,476 + 4,927)
÷ (15,180 + 14,323 + 17,743 + 15,117)
= 32.00%
2 Click competitor name to see calculations.
The gross profit margin exhibits two distinct phases over the analyzed period: a phase of relative stability followed by a sustained period of expansion. While net sales and gross earnings demonstrate significant quarterly seasonality, the profit margin reflects a long-term upward trajectory, particularly accelerating from early 2024 through August 2026.
- Stability and Fluctuation Period (May 2021 – January 2023)
- During this interval, the gross profit margin remained range-bound, fluctuating between a low of 27.61% and a peak of 28.91%. The margins showed minimal volatility, returning to the 27.61% level in January 2023, indicating a period where cost of goods sold scaled proportionally with net sales.
- Margin Expansion Phase (February 2024 – August 2026)
- A structural shift is observed starting in February 2024, where the gross profit margin surpassed the 30% threshold for the first time. From this point, a consistent upward trend is evident, with the margin climbing from 30.00% to a peak of 32.00% by August 2026. This represents a significant improvement in profitability per dollar of sales, suggesting enhanced pricing power, more efficient procurement, or a shift toward higher-margin product mixes.
- Correlation Between Revenue and Profitability
- Analysis of net sales reveals recurring quarterly peaks, typically occurring in the January and November periods. Despite these cyclical fluctuations in volume, the gross profit margin continued to rise independently of seasonal sales spikes. The growth in gross earnings outperformed the growth in net sales during the latter half of the period, confirming that the increase in total earnings was driven not only by higher sales volume but by fundamental margin improvement.
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Operating Profit Margin
TJX Cos. Inc., operating profit margin 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) | |||||||||||||||||||||||||||||
| Operating income (loss) | 1,987) | 1,686) | 2,354) | 1,888) | 1,620) | 1,316) | 1,847) | 1,693) | 1,422) | 1,340) | 1,789) | 1,548) | 1,289) | 1,171) | 1,316) | 1,359) | 1,097) | 1,089) | 1,264) | 1,400) | 1,325) | 766) | |||||||
| Net sales | 15,180) | 14,323) | 17,743) | 15,117) | 14,401) | 13,111) | 16,350) | 14,063) | 13,468) | 12,479) | 16,411) | 13,265) | 12,758) | 11,783) | 14,520) | 12,166) | 11,843) | 11,406) | 13,854) | 12,532) | 12,077) | 10,087) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Operating profit margin1 | 12.69% | 12.26% | 11.89% | 11.31% | 11.18% | 11.02% | 11.18% | 11.07% | 10.96% | 10.86% | 10.69% | 10.17% | 10.02% | 9.82% | 9.73% | 9.76% | 9.77% | 10.18% | 9.79% | 9.55% | 9.32% | 7.05% | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 12.08% | 11.50% | 11.16% | 11.02% | 11.37% | 11.02% | 10.75% | 9.77% | 9.00% | 8.02% | 6.41% | 4.76% | 3.29% | 2.54% | 2.38% | 2.58% | 3.15% | 4.12% | |||||||
| Home Depot Inc. | 12.43% | 12.45% | 12.68% | 12.96% | 13.09% | 13.24% | 13.49% | 13.70% | 13.91% | 13.97% | 14.21% | 14.51% | 14.88% | 15.19% | 15.27% | 15.33% | 15.30% | 15.20% | 15.24% | 15.10% | 14.79% | 14.70% | |||||||
| Lowe’s Cos. Inc. | 11.38% | 11.55% | 11.77% | 12.19% | 12.35% | 12.38% | 12.51% | 12.33% | 12.48% | 12.79% | 13.38% | 12.83% | 10.51% | 10.60% | 10.47% | 10.74% | 12.76% | 12.72% | 12.56% | 12.36% | 11.79% | 11.55% | |||||||
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
Operating profit margin = 100
× (Operating income (loss)Q2 2027
+ Operating income (loss)Q1 2027
+ Operating income (loss)Q4 2026
+ Operating income (loss)Q3 2026)
÷ (Net salesQ2 2027
+ Net salesQ1 2027
+ Net salesQ4 2026
+ Net salesQ3 2026)
= 100 × (1,987 + 1,686 + 2,354 + 1,888)
÷ (15,180 + 14,323 + 17,743 + 15,117)
= 12.69%
2 Click competitor name to see calculations.
A consistent long-term expansion in operating efficiency is evident, as the operating profit margin increased from 7.05% in May 2021 to 12.69% by August 2026. This upward trajectory indicates a sustained improvement in the ability to convert net sales into operating income over the observed period.
- Initial Margin Expansion
- A sharp increase in profitability occurred between May 2021 and January 2022, where the operating profit margin rose from 7.05% to 9.79%. This period represents the most rapid rate of margin growth in the dataset, establishing a new baseline for operational performance.
- Period of Stability and Incremental Growth
- From April 2022 through April 2023, the operating profit margin remained relatively stable, fluctuating within a narrow range between 9.73% and 10.18%. During this phase, operating income and net sales exhibited cyclical volatility, but the margin remained resilient, suggesting a period of consolidation in cost management.
- Accelerated Efficiency Gains
- Starting in July 2023, a second phase of steady margin expansion is observed. The margin climbed from 10.02% to 11.18% by February 2024 and continued to rise, ultimately reaching a peak of 12.69% in August 2026. This trend reflects a successful scaling of operations where operating income grew at a faster rate than net sales.
- Correlation Between Sales Volume and Profitability
- Net sales demonstrate a clear seasonal pattern, with recurring peaks in the winter quarters and dips in the spring quarters. Despite these fluctuations in revenue, the operating profit margin continued to trend upward. The fact that margins expanded even during quarters of lower net sales indicates a systemic improvement in operational leverage and expense control.
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Net Profit Margin
TJX Cos. Inc., net profit margin 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) | |||||||||||||||||||||||||||||
| Net income (loss) | 1,520) | 1,332) | 1,773) | 1,442) | 1,243) | 1,036) | 1,398) | 1,297) | 1,099) | 1,070) | 1,403) | 1,191) | 989) | 891) | 1,038) | 1,063) | 809) | 587) | 940) | 1,023) | 786) | 534) | |||||||
| Net sales | 15,180) | 14,323) | 17,743) | 15,117) | 14,401) | 13,111) | 16,350) | 14,063) | 13,468) | 12,479) | 16,411) | 13,265) | 12,758) | 11,783) | 14,520) | 12,166) | 11,843) | 11,406) | 13,854) | 12,532) | 12,077) | 10,087) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Net profit margin1 | 9.73% | 9.40% | 9.10% | 8.68% | 8.59% | 8.47% | 8.63% | 8.63% | 8.56% | 8.47% | 8.25% | 7.85% | 7.77% | 7.56% | 7.00% | 6.90% | 6.77% | 6.69% | 6.76% | 5.85% | 5.81% | 4.00% | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 17.44% | 12.22% | 10.83% | 11.06% | 10.54% | 10.14% | 9.29% | 8.04% | 7.35% | 6.38% | 5.29% | 3.62% | 2.43% | 0.82% | -0.53% | 2.25% | 2.39% | 4.48% | |||||||
| Home Depot Inc. | 8.41% | 8.41% | 8.60% | 8.77% | 8.86% | 8.98% | 9.28% | 9.45% | 9.71% | 9.79% | 9.92% | 10.22% | 10.48% | 10.75% | 10.87% | 10.87% | 10.88% | 10.83% | 10.87% | 10.79% | 10.55% | 10.45% | |||||||
| Lowe’s Cos. Inc. | 7.34% | 7.51% | 7.71% | 8.05% | 8.20% | 8.22% | 8.31% | 8.19% | 8.25% | 8.46% | 8.94% | 8.49% | 6.48% | 6.65% | 6.63% | 6.97% | 8.84% | 8.85% | 8.77% | 8.63% | 7.41% | 7.23% | |||||||
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
Net profit margin = 100
× (Net income (loss)Q2 2027
+ Net income (loss)Q1 2027
+ Net income (loss)Q4 2026
+ Net income (loss)Q3 2026)
÷ (Net salesQ2 2027
+ Net salesQ1 2027
+ Net salesQ4 2026
+ Net salesQ3 2026)
= 100 × (1,520 + 1,332 + 1,773 + 1,442)
÷ (15,180 + 14,323 + 17,743 + 15,117)
= 9.73%
2 Click competitor name to see calculations.
The financial performance over the period from May 2021 to August 2026 is characterized by a consistent and significant expansion in profitability margins. There is a clear upward trajectory in the efficiency with which revenue is converted into net income, reflecting a sustained improvement in bottom-line performance.
- Net Profit Margin Expansion
- A steady and nearly uninterrupted increase in the net profit margin is observed, rising from 4.00% in May 2021 to a peak of 9.73% by August 2026. This growth progressed through several stages: an initial rapid ascent to 6.90% by October 2022, a period of consolidation and growth into the 7% and 8% ranges throughout 2023 and 2024, and a final acceleration toward the 9% threshold in 2026.
- Revenue and Earnings Correlation
- Both net sales and net income exhibit long-term growth, although both are subject to notable quarterly seasonality. Net sales increased from 10,087 million to 15,180 million, while net income rose from 534 million to 1,520 million. The expansion of the profit margin indicates that net income grew at a disproportionately faster rate than net sales, suggesting successful cost management or an increase in higher-margin sales.
- Operational Efficiency and Resilience
- The data reveals a high degree of resilience in profitability. Despite recurring quarterly fluctuations in sales volume—typically dipping in the second quarter of each year—the net profit margin continued to trend upward or remain stable. This decoupling of margin performance from sales volatility suggests improved operational leverage and a more efficient cost structure over time.
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Return on Equity (ROE)
TJX Cos. Inc., ROE 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) | |||||||||||||||||||||||||||||
| Net income (loss) | 1,520) | 1,332) | 1,773) | 1,442) | 1,243) | 1,036) | 1,398) | 1,297) | 1,099) | 1,070) | 1,403) | 1,191) | 989) | 891) | 1,038) | 1,063) | 809) | 587) | 940) | 1,023) | 786) | 534) | |||||||
| 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) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| ROE1 | 56.96% | 55.66% | 53.92% | 54.70% | 56.10% | 56.80% | 57.95% | 59.57% | 61.21% | 62.02% | 61.27% | 60.14% | 60.25% | 59.20% | 54.97% | 60.02% | 62.26% | 59.63% | 54.69% | 41.40% | 39.21% | 24.63% | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 24.52% | 20.55% | 18.89% | 20.69% | 21.16% | 21.56% | 20.72% | 19.24% | 18.79% | 17.39% | 15.07% | 10.97% | 7.75% | 2.78% | -1.86% | 8.24% | 8.83% | 15.98% | |||||||
| Home Depot Inc. | 85.62% | 100.99% | 110.48% | 120.35% | 137.17% | 184.02% | 222.98% | 252.51% | 334.21% | 817.03% | 1,450.48% | 1,098.18% | 1,215.96% | 4,626.24% | 1,095.07% | 1,317.03% | 7,124.47% | — | — | 1,539.90% | 736.64% | 844.74% | |||||||
| Lowe’s Cos. Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 1,532.36% | |||||||
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
ROE = 100
× (Net income (loss)Q2 2027
+ Net income (loss)Q1 2027
+ Net income (loss)Q4 2026
+ Net income (loss)Q3 2026)
÷ Shareholders’ equity
= 100 × (1,520 + 1,332 + 1,773 + 1,442)
÷ 10,651 = 56.96%
2 Click competitor name to see calculations.
The financial trajectory from May 2021 through August 2026 is characterized by a substantial increase in net income and a steady expansion of the shareholders' equity base, resulting in a sustained high level of capital efficiency. While absolute profitability increased consistently, the return on equity experienced an initial phase of rapid acceleration followed by a period of stabilization and a slight subsequent normalization.
- Net Income Progression
- Net income exhibited a strong upward trend, rising from 534 million USD in May 2021 to 1,520 million USD by August 2026. A significant peak was observed in January 2026, where net income reached 1,773 million USD. This overall growth indicates a consistent improvement in the company's ability to generate profit over the analyzed timeframe.
- Shareholders' Equity Dynamics
- Shareholders' equity experienced an initial decline, dropping from 6,139 million USD in May 2021 to a low of 5,397 million USD in July 2022. Following this period, equity grew consistently and aggressively, reaching 10,651 million USD by August 2026. This suggests a strategic accumulation of capital or retained earnings over the latter half of the period.
- Return on Equity (ROE) Analysis
- ROE showed a sharp increase in the early stages of the period, climbing from 24.63% in May 2021 to a peak of 62.26% in July 2022. This spike was driven by the simultaneous increase in net income and the reduction in shareholders' equity. Between October 2022 and May 2024, ROE remained highly stable, generally oscillating between 55% and 62%. A gradual downward trend is observed from November 2024 onward, with values settling between 53.92% and 56.96% by August 2026. This stabilization indicates that the growth in the equity base has begun to catch up with the growth in net income, leading to a more normalized, though still exceptionally high, return on invested capital.
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Return on Assets (ROA)
TJX Cos. Inc., ROA 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) | |||||||||||||||||||||||||||||
| Net income (loss) | 1,520) | 1,332) | 1,773) | 1,442) | 1,243) | 1,036) | 1,398) | 1,297) | 1,099) | 1,070) | 1,403) | 1,191) | 989) | 891) | 1,038) | 1,063) | 809) | 587) | 940) | 1,023) | 786) | 534) | |||||||
| 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) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| ROA1 | 16.35% | 16.01% | 15.36% | 14.55% | 15.13% | 15.16% | 15.32% | 15.01% | 15.59% | 15.68% | 15.04% | 13.54% | 13.77% | 13.25% | 12.34% | 11.96% | 12.40% | 12.04% | 11.53% | 8.87% | 8.73% | 4.99% | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||||||||
| Amazon.com Inc. | — | — | — | — | 12.35% | 9.91% | 9.49% | 10.51% | 10.35% | 10.25% | 9.48% | 8.53% | 8.01% | 7.10% | 5.76% | 4.12% | 2.74% | 0.92% | -0.59% | 2.64% | 2.77% | 5.21% | |||||||
| Home Depot Inc. | 13.01% | 12.99% | 13.47% | 13.72% | 14.62% | 14.76% | 15.40% | 15.02% | 15.25% | 18.77% | 19.79% | 20.78% | 21.25% | 21.92% | 22.38% | 22.24% | 22.27% | 21.57% | 22.86% | 21.82% | 21.54% | 20.35% | |||||||
| Lowe’s Cos. Inc. | 11.89% | 12.09% | 12.29% | 12.68% | 14.71% | 15.08% | 16.14% | 15.32% | 15.42% | 15.92% | 18.49% | 18.02% | 13.58% | 13.86% | 14.73% | 14.23% | 18.04% | 17.00% | 18.91% | 16.63% | 14.19% | 13.32% | |||||||
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
ROA = 100
× (Net income (loss)Q2 2027
+ Net income (loss)Q1 2027
+ Net income (loss)Q4 2026
+ Net income (loss)Q3 2026)
÷ Total assets
= 100 × (1,520 + 1,332 + 1,773 + 1,442)
÷ 37,115 = 16.35%
2 Click competitor name to see calculations.
The analyzed period demonstrates a significant and sustained improvement in asset efficiency and overall profitability. The company successfully transitioned from a lower return profile in early 2021 to a highly optimized operational state by mid-2026, characterized by a consistent increase in the ability to generate profit from its asset base.
- Return on Assets (ROA) Trend
- A strong upward trajectory is observed in the ROA, which rose from 4.99% in May 2021 to 16.35% by August 2026. The most rapid acceleration occurred between May 2021 and July 2022, where the ratio increased from 4.99% to 12.40%. Following this initial surge, the ROA maintained a steady climb, peaking at 15.68% in May 2024 before stabilizing within a range of 14.55% to 16.35% through the end of the period.
- Net Income Growth
- Profitability experienced substantial expansion, with net income growing from 534 million in May 2021 to 1,520 million in August 2026. A notable peak in earnings was recorded in January 2026 at 1,773 million. The consistent growth in net income served as the primary catalyst for the improvement in the ROA, as earnings growth significantly outpaced the growth of the asset base.
- Asset Base Dynamics
- Total assets exhibited a fluctuating but ultimately expansive trend. An initial contraction is noted from May 2021 (30,301 million) to a low of 27,091 million in July 2022. This was followed by a period of steady growth, with total assets increasing to 37,115 million by August 2026. The fact that ROA continued to rise while the asset base expanded indicates a high level of scalability and increased operational leverage.
- Operational Efficiency Insights
- The convergence of increasing net income and a growing asset base suggests that the company achieved greater productivity per unit of asset. The transition from an ROA of approximately 5% to over 16% indicates a fundamental shift in the efficiency of capital deployment and a strengthened ability to convert investments into bottom-line results.
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