TJX Cos. Inc. (NYSE:TJX)

Inventory Turnover

The inventory turnover ratio shows notable fluctuations over the periods analyzed, ranging generally between approximately 4.2 and 6.9. It peaked at 6.88 in October 2020 and experienced lower values around early 2022, notably 4.26 in April 2022. Recent quarters demonstrate a pattern of moderate oscillations, with some recovery observed towards mid-2024, reaching values slightly above 6 before declining again.

Receivables Turnover

The receivables turnover ratio exhibits significant variability with extreme values early in the series, such as a peak of 213.66 in August 2019, which appears anomalous relative to other periods. Beyond this spike, the ratio stabilizes in a range generally between 60 and 105, with a mild upward trend in recent quarters, suggesting a moderately consistent ability to collect receivables despite some volatility.

Payables Turnover

Payables turnover shows considerable volatility, beginning with a high of 25.79 in August 2019, followed by a marked decrease to single digits in subsequent periods. The ratio mostly fluctuates between about 5 and 10 in later quarters, indicating varying rates at which payables are settled. The data reveals irregular payment pacing, with no clear consistent trend.

Working Capital Turnover

Working capital turnover demonstrates a general upward trend over the intervals observed. Starting from a lower point near 6.5 in mid-2019, the ratio increases substantially, peaking above 32 by mid-2025. This suggests progressively more efficient use of working capital in generating sales, especially notable after 2022, where the ratio consistently remains above 20.

Average Inventory Processing Period

The average inventory processing period varies notably from about 53 days to a high of 86 days. There are periods of noticeable elongation, for example, peaking at 86 days in October 2022, indicating slower inventory turnover in these quarters. Fluctuations are evident but no clear long-term increase or decrease trend emerges, rather a pattern of alternating shorter and longer periods.

Average Receivable Collection Period

This metric remains quite stable across the timeline, largely staying between 3 and 6 days. Minor variability suggests the company maintains consistent collection practices without substantial changes in the duration required to collect receivables.

Operating Cycle

The operating cycle generally follows the trend observed in inventory and receivables periods, ranging mostly between 60 and 90 days. Some elongation occurs in specific quarters such as October 2022 with 90 days, reflecting longer combined inventory and receivable durations. Overall, fluctuations correspond with inventory processing shifts.

Average Payables Payment Period

The average payables payment period shows wide variation, with a marked dip to as low as 14 days in August 2019, and peaks approaching 88 days in February 2020. In subsequent quarters, it fluctuates between roughly 38 and 61 days, indicating inconsistency in payment timing and possible strategic adjustments in supplier payment terms.

Cash Conversion Cycle

The cash conversion cycle presents considerable variation, including negative values (e.g., -11 days in February 2020), reflecting periods when payables are paid after receivables are collected and inventory is sold, which enhances working capital efficiency. Positive values reach as high as 53 days but stabilize mostly between 20 to 30 days in recent quarters, indicating an overall balanced but somewhat fluctuating cash flow management approach.

The analysis of the quarterly financial data reveals several notable trends regarding cost of sales, merchandise inventories, and inventory turnover ratios over the examined periods.

Cost of Sales, Including Buying and Occupancy Costs

The cost of sales demonstrates a fluctuating but overall increasing trend from May 2019 through August 2025. Initially, costs rose steadily from 6,638 million USD in May 2019 to a peak of 8,742 million USD in February 2020. A significant decrease occurred in May 2020, likely reflecting disruptions during that period, with costs dropping to 4,414 million USD. Following that trough, costs recovered and continued an upward trajectory, reaching a new peak of 11,528 million USD by February 2024. The data suggests heightened operational costs over time, with recurring seasonal or cyclical fluctuations. From February 2024 onwards, costs maintain elevated levels above 9,000 million USD.

Merchandise Inventories

Merchandise inventories reveal a variable pattern with notable volatility. From May 2019 to November 2019, inventories increased from 5,057 million USD to 6,275 million USD, then sharply dropped to 4,873 million USD in February 2020. Average inventory levels declined markedly by August 2020 to about 3,744 million USD, indicating possible inventory reductions during that challenging period. Subsequently, inventories display irregular increases and decreases, reaching peaks such as 8,329 million USD in October 2022 and again around 8,371 million USD in February 2025. The fluctuations suggest inventory management adjustments, likely in response to changing demand patterns or supply chain constraints.

Inventory Turnover Ratio

Inventory turnover ratios range from approximately 4.26 to 6.88, demonstrating variability in how efficiently inventory is converted into sales. The highest turnover of 6.88 appears in October 2020, indicating a period of efficient inventory usage. In contrast, lower turnovers near 4.26 and 4.48 occur in January 2023 and October 2023 respectively, suggesting slower movement of inventory during those quarters. The turnover moderates around 5.5 to 6.0 in many periods, reflecting generally consistent inventory management practices over time. Noteworthy is the pattern that turnover tends to decline during periods when inventory levels are elevated, implying a potential buildup of stock relative to sales activity.

In summary, the data portrays an overall escalation in cost of sales aligned with expanding operational scales, punctuated by temporary declines likely due to external disruptions. Merchandise inventories have remained volatile, requiring close management to balance supply with fluctuating demand. Inventory turnover values indicate periods of both efficient and slower inventory usage, generally reflecting adaptive inventory management strategies over the analyzed timeline.

Net Sales

The net sales exhibited a generally increasing trend over the analyzed periods, despite a sharp decline observed in the quarter ending May 2, 2020. This drop aligns with a significant reduction from 12,206 million USD in the previous quarter to 4,409 million USD. Following this trough, net sales recovered steadily, reaching peaks above 16,000 million USD in the quarters ending February 3, 2024, and February 1, 2025. Fluctuations were observed throughout, with occasional moderate decreases, but the overall trajectory shows growth in sales volume.

Accounts Receivable, Net

Accounts receivable generally increased over the timeframe, though the values fluctuated without a clear upward or downward linear pattern. An initial dip occurred in May 2020, corresponding with the nadir in net sales, followed by a rebound and relative stabilization around the 500-600 million USD range in the later quarters. This pattern suggests variability in credit sales management or collection timing, but no extreme deviations appeared after the initial COVID-19 impact period.

Receivables Turnover Ratio

The receivables turnover ratio showed considerable volatility in the early quarters, with extremely high values reported in mid-2019, which may be data irregularities or anomalies (e.g., a ratio of 213.66 was recorded). Subsequently, the ratio stabilized to a range roughly between 60 and 105, showing some oscillations but without strongly directional trends. Periods with lower turnover ratios frequently correspond to quarters with declining or lower sales, indicating longer collection periods or slower turnover of receivables in those quarters.

Overall Insights

The data reflects a significant impact on net sales and accounts receivable during early 2020, likely related to external market conditions, followed by a recovery and growth phase. The receivables turnover ratio's stabilization post-2020 suggests improved or stabilized credit and collection management. Although fluctuations remain in all metrics, the company appears to maintain operational recovery and growth momentum as evidenced by increasing net sales and relatively steady accounts receivable levels.

The financial data reveals a number of notable trends and fluctuations across the observed periods.

Cost of Sales, Including Buying and Occupancy Costs

Initially, cost of sales showed a steady increase from May 2019 (6,638 million USD) through February 2020 (8,742 million USD), followed by a sharp decline to 4,414 million USD in May 2020, likely reflecting external disruptions impacting operations. From that low point, costs progressively increased again, with fluctuations observed in subsequent quarters. The costs peaked again in February 2024 at 11,528 million USD before experiencing some volatility but generally maintaining high levels through the last reported period of August 2025 (9,976 million USD).

Accounts Payable

The accounts payable figures display significant variability. Initially stable in 2019, the figures moved from 2,578 million USD in May 2019 to a rise reaching 6,143 million USD in October 2020. Following this peak, payables decreased and fluctuated between approximately 4,000 million USD and 5,500 million USD in several periods. Toward the latest dates, accounts payable figures ranged between 4,257 million USD and 4,698 million USD, indicating relative stabilization from earlier peaks.

Payables Turnover Ratio

Payables turnover data is available starting from November 2019, revealing substantial volatility. The ratio was exceptionally high at 25.79 in May 2020, indicating faster payment or reduced payables. Subsequently, the ratio generally fluctuated between roughly 4.13 and 11.17, showing variation in how quickly the company settled payables relative to its purchasing activities. The ratio fluctuated around 7 to 9 in the latest periods, indicating a moderate pace of payables turnover.

Overall, the data illustrates a business adjusting to considerable cost and payable fluctuations, notable around mid-2020, possibly linked to external market conditions. The cost of sales showed resilience and recovery post the downturn, while accounts payable and turnover ratios suggest varying payment strategies, possibly reflecting efforts to optimize working capital management in response to operational dynamics.

The data reveals significant fluctuations in working capital levels over the observed periods, with marked changes coinciding with the onset of the global event in early 2020. Initially, working capital remains relatively stable, ranging from approximately 1,400 to 1,700 million USD. However, from May 2, 2020, there is a pronounced increase, peaking at 5,627 million USD, before gradually decreasing over subsequent quarters. This elevated level persists into early 2021, after which working capital trends downward, returning to levels closer to the pre-event figures by mid-2025, albeit with some minor oscillations.

Net sales display a distinct pattern, with steady growth from May 2019 through February 2020, reaching a peak of 12,206 million USD. Following this, there is a sharp decline in May 2020, dropping to 4,409 million USD, which likely reflects external economic disruptions. Thereafter, net sales recover progressively, showing strong upward momentum through 2021 and 2022, with periodic fluctuations but generally maintaining an upward trajectory, culminating in values exceeding 14,000 million USD in several quarters of 2024 and 2025.

The working capital turnover ratio is unavailable before May 2020 but is calculable thereafter. The ratio shows considerable volatility, beginning at 23.97 and then sharply decreasing to 6.55 in August 2020. Following this low, the ratio exhibits a steady rise, peaking near 32.24 in August 2024 before gently declining again. This pattern suggests that initially, the company’s efficiency in utilizing working capital to generate sales deteriorated significantly but improved substantially in subsequent periods, indicating enhanced operational efficiency or changes in capital management strategies as the business environment stabilized.

Working Capital Trends

Initial stability is disrupted by a pronounced spike in mid-2020, followed by a gradual normalization by 2025.

Net Sales Movement

Strong growth pre-2020, abrupt decline in Q2 2020, followed by consistent recovery and strong growth through mid-2025.

Working Capital Turnover Ratio

Unavailable initially; post-2020 data shows a sharp decline in efficiency followed by a marked improvement, peaking in 2024 with slight reductions thereafter.

Overall, the data reflects substantial impact from external factors beginning in early 2020, affecting both liquidity and sales performance. The company's recovery trajectory appears robust, with operational efficiency as measured by working capital turnover improving significantly post-recovery. The trends suggest adaptive management responses and resumption of growth momentum moving into 2024 and 2025.

The inventory turnover ratio exhibits fluctuations over the observed periods, ranging approximately between 4.26 and 6.88. Initial values from mid-2020 onward indicate a pattern of alternating increases and decreases, without a clear, sustained upward or downward trend. Periods with higher turnover ratios generally correspond to shorter inventory processing periods, suggesting more efficient inventory management during those times.

The average inventory processing period, measured in days, similarly demonstrates variability across the quarters. The values range roughly from 53 days to 86 days. Notably, when the inventory turnover ratio peaks, the processing period tends to contract, aligning with the inverse relationship typical between these metrics. For example, a turnover ratio of 6.88 correlates with a processing period of 53 days, indicating rapid inventory movement. Conversely, lower turnover ratios coincide with longer processing times, such as a turnover of 4.26 alongside an 86-day processing period, implying slower inventory turnover.

Overall, the data suggest cyclical changes in inventory management efficiency, with alternating periods of faster and slower inventory turnover. These variations may reflect seasonal influences, market conditions, or strategic adjustments in inventory control practices. The absence of a definitive long-term trend indicates that the company experiences consistent challenges and opportunities in maintaining optimal inventory levels and turnover rates over time.

Inventory Turnover Ratio

Fluctuates between approximately 4.26 and 6.88.

No clear directional trend but shows cyclical rises and falls.

Higher turnover correlates with more efficient inventory management.

Average Inventory Processing Period

Varies between approximately 53 and 86 days.

Inversely related to inventory turnover: shorter processing periods correspond with higher turnover ratios.

Periods of increased processing time suggest slower inventory movement.

Overall Insights

Inventory management efficiency experiences cyclical fluctuations without a consistent upward or downward trajectory.

These cycles may be influenced by external factors like seasonality or internal factors such as inventory strategy adaptations.

The receivables turnover ratio exhibits notable fluctuations throughout the observed periods. Initially, the data is missing for the early quarters until May 2020, where the ratio peaks at 213.66, an unusually high value compared to surrounding periods. Following this peak, the ratio declines sharply, reaching 60.88 in May 2021, which represents a significant decrease. After this low point, the ratio generally recovers and stabilizes within a range of approximately 85 to 106 from early 2022 through August 2025, with minor oscillations observed. The highest stable values near 106 occur in the quarters of October 2023 and February 2024, while the lowest in the stable phase is near 85.71 in January 2023.

In parallel, the average receivable collection period shows stability reflecting efficient credit management. Starting from 3 days in May 2020 (matching the noted high turnover ratio), it slightly increases to 5 or 6 days by mid-2021. Thereafter, it consistently remains around 4 days from late 2021 through August 2025, indicating a steady pace of receivables collection over the analyzed quarters.

Receivables Turnover Ratio

Displays a sharp peak in mid-2020 at 213.66, followed by a significant decline by mid-2021 to about 60.88.

After mid-2021, the ratio recovers and stabilizes generally between 85 and 106 through 2025, with some fluctuations but no extreme variations.

Average Receivable Collection Period

Begins at 3 days in mid-2020, slightly increases to approximately 5-6 days by mid-2021.

Maintains a consistent level around 4 days from late 2021 onwards, reflecting stable collection efficiency.

Insights

The inverse relationship between the receivables turnover (higher ratio indicates faster turnover) and the average collection period is evident.

The exceptionally high turnover ratio in May 2020 may suggest a temporary anomaly or specific operational event affecting receivables management.

Post-2021 data suggests a normalization and consistent management of receivables, with collection periods remaining low and turnover ratios stable.

Average Inventory Processing Period

The average inventory processing period exhibits notable fluctuations over the analyzed quarters. Initially, starting at 60 days in May 2020, the period increases to a peak of 86 days by January 2023, indicating a lengthening of the inventory holding duration. Subsequently, there is a decline to 57 days by May 2024, followed by a slight uptick to 67 days by August 2025. This pattern suggests variability in how long inventory remains before being processed, with periods of both extended and reduced durations.

Average Receivable Collection Period

The average receivable collection period remains relatively stable throughout the timeframe. Values consistently hover around 4 days, with minor deviations between 2 and 6 days. This steadiness indicates consistent credit and collection policies, with little variation in the time taken to collect receivables from customers.

Operating Cycle

The operating cycle mirrors the trends observed in the inventory processing period, reflecting its influence on the overall cycle length. Beginning at 63 days in May 2020, the cycle extends to a high of 90 days in January 2023, indicating a lengthier time for the full process from inventory acquisition to receivable collection. Following this peak, the operating cycle decreases to 61 days by May 2024 before modestly rising again to 71 days by August 2025. These fluctuations suggest changes in operational efficiency and inventory management impact the overall duration of the operating cycle.

The payables turnover ratio and the average payables payment period demonstrate inverse movement, as expected, reflecting variations in the company's payment behavior over time.

Payables Turnover Ratio

The payables turnover ratio showed significant volatility, beginning with a notably high spike at 25.79 in August 2020, followed by a sharp decline to 10.64 in October 2020 and then further to 4.13 in January 2021. Afterwards, the ratio fluctuated moderately, mostly staying between approximately 5 and 9 throughout the subsequent periods. The highest values beyond the initial spike were observed in May 2023 (9.83) and February 2025 (9.19), indicating relatively quicker payment cycles during those quarters. Toward the most recent quarters, the ratio remained in the 8 to 9 range, suggesting a stabilization at a moderate turnover pace.

Average Payables Payment Period (Days)

The average payment period exhibited an opposite pattern to the turnover ratio, reflecting longer days when the turnover ratio decreased. It showed a low of 14 days in August 2020, corresponding to the peak in turnover, and conversely reached a peak of 88 days in February 2020 when turnover was low. From that point onward, days payable generally trended downward and then oscillated around the 40 to 50 day range in the later periods. This indicates a return to more consistent and moderate payment terms, with some minor fluctuations but no clear trend toward either extreme early or late payment practices.

Overall, the data suggest that after a period of high variability in payment practices around 2020, the company’s payment behavior settled into a more stable pattern with payables turnover ratios mostly between 6 and 9, and payment periods roughly between 40 and 50 days. This implies improved management or normalization of payables processing over the recent years analyzed.

The data reveals several notable trends in the company's working capital management metrics over the analyzed periods.

Average Inventory Processing Period

This metric exhibits significant fluctuations, with values ranging from a low of 53 days to a high of 86 days. Initially, after May 2020, it increased from 60 days to peaks above 70 days on several occasions, particularly around early 2023 where the period reached 86 days. Subsequently, there is a general tendency for the inventory processing period to oscillate between mid-50s and mid-70s days, with some short-term increases and decreases. The considerable variability suggests changing efficiency or inventory policies over time.

Average Receivable Collection Period

The receivables collection period remains relatively stable and consistently low, mostly maintaining between 3 and 5 days. This stability indicates efficient and consistent credit management practices, with no significant increases or fluctuations observed across the reported quarters.

Average Payables Payment Period

This period shows marked volatility throughout the timeline. Starting from a lower range around 14 to 33 days in mid-2020, the payment period spiked sharply to 88 days in early 2020, indicating a substantial delay in vendor payments at that time. Thereafter, the period generally trends within a band of 37 to 61 days but fluctuates noticeably quarter to quarter. The variations could indicate strategic shifts in payables management or responses to operational cash flow needs.

Cash Conversion Cycle

The cash conversion cycle demonstrates considerable variability, moving from positive values in most periods to several negative values, notably in early 2020 where it reached -11 days. Negative values imply the company collected cash from sales before it paid its suppliers, enhancing liquidity. After this dip, the cycle mostly fluctuates between 13 and 39 days, indicating moderate efficiency in cash flow conversion. The trend suggests efforts to optimize working capital, though with some instability potentially linked to the inventory and payables fluctuations.

Overall, the company’s receivables management appears consistent and efficient. However, inventory processing and payables payment periods show considerable variability, contributing to fluctuations in the cash conversion cycle. These patterns suggest varying operational or financial strategies influencing working capital over time.