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TJX Financial Strength

: 7 (As of Apr. 2022)
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TJX has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

TJX's Interest Coverage for the quarter that ended in Apr. 2022 was 51.11. TJX's debt to revenue ratio for the quarter that ended in Apr. 2022 was 0.28. As of today, TJX's Altman Z-Score is 4.90.


Competitive Comparison

For the Apparel Retail subindustry, TJX's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

TJX Financial Strength Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, TJX's Financial Strength distribution charts can be found below:

* The bar in red indicates where TJX's Financial Strength falls into.



TJX Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

TJX's Interest Expense for the months ended in Apr. 2022 was $-21 Mil. Its Operating Income for the months ended in Apr. 2022 was $1,089 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Apr. 2022 was $11,133 Mil.

TJX's Interest Coverage for the quarter that ended in Apr. 2022 is

Interest Coverage=-1*Operating Income (Q: Apr. 2022 )/Interest Expense (Q: Apr. 2022 )
=-1*1088.679/-21.3
=51.11

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

TJX's Debt to Revenue Ratio for the quarter that ended in Apr. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Apr. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1575.582 + 11132.975) / 45625.896
=0.28

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

TJX has a Z-score of 4.90, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.9 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


TJX  (NYSE:TJX) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

TJX has the Financial Strength Rank of 7.


TJX Financial Strength Related Terms

Thank you for viewing the detailed overview of TJX's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


TJX Business Description

TJX logo
Address
770 Cochituate Road, Framingham, MA, USA, 01701
TJX is a leading off-price retailer of apparel, home fashions, and other merchandise. It sells a variety of branded goods, opportunistically buying inventory from a network of over 21,000 vendors worldwide. TJX targets undercutting conventional retailers' regular prices by 20%-60%, capitalizing on a flexible merchandising network, relatively low-frills stores, and a treasure-hunt shopping experience to drive margins and inventory turnover. TJX derived 79% of fiscal 2021 revenue from the United States, with 11% from Europe (mostly the United Kingdom and Germany), 9% from Canada, and the remainder from Australia. The company operated 4,572 stores at the end of fiscal 2021 under the T.J. Maxx, T.K. Maxx, Marshalls, HomeGoods, Winners, Homesense, Winners, and Sierra banners.
Executives
Greenlees Louise officer: SEVP - Group President C/O THE TJX COMPANIES, INC. 770 COCHITUATE ROAD FRAMINGHAM MA 01701
Goodwin C Kim director C/O AKAMAI TECHNOLOGIES, INC. 8 CAMBRIDGE CENTER CAMBRIDGE MA 02142
Berkery Rosemary T director MERRILL LYNCH CORPORATE SECRETARY 222 BROADWAY, 17TH FLOOR NEW YORK NY 10038
Mizzi Douglas W. officer: SEVP - Group President THE TJX COMPANIES, INC. 770 COCHITUATE ROAD FRAMINGHAM MA 01701
Nemerov Jackwyn director C/O POLO RALPH LAUREN CORPORATION 650 MADISON AVENUE NEW YORK NY 10022
Swanson William H director 870 WINTER STREET WALTHAM MA 02451
Canestrari Kenneth officer: SEVP - Group President THE TJX COMPANIES, INC. 770 COCHITUATE ROAD FRAMINGHAM MA 01701
Lepore Dawn G director 1425 BROADWAY PMB 41 SEATTLE WA 99122
Abdalla Zein director 700 ANDERSON HILL ROAD LEGAL DEPARTMENT, 1/2 PURCHASE NY 10577
Goldenberg Scott officer: EVP, CFO THE TJX COMPANIES, INC. 770 COCHITUATE ROAD FRAMINGHAM MA 01701
Sherr Richard officer: SEVP, Group President THE TJX COMPANIES, INC. 770 COCHITUATE ROAD FRAMINGHAM MA 01701
Macmillan Michael officer: SEVP, Group President THE TJX COMPANIES, INC. 770 COCHITUATE RD. FRAMINGHAM MA 01701
Stutz Nan officer: SEVP, Group President THE TJX COMPANIES, INC. 770 COCHITUATE RD. FRAMINGHAM MA 01701
Alvarez Jose B director STOP & SHOP 1385 HANCOCK STREET QUINCY MA 02169
Bennett Alan M director ONE H&R BLOCK WAY KANSAS CITY MO 64105

TJX Headlines

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