Debt-to-Equity Ratio

The debt-to-equity ratio measures how much a company relies on borrowed money versus shareholder funds to finance its operations.

TJX’s current ratio of 0.28x means it uses far less debt than equity, indicating a conservative capital structure. This is below the sector median of 0.73x, placing TJX in the 23rd percentile among sector peers — meaning 77% of peers have higher leverage. The ratio has been decreasing over the last eight quarters, with no year-over-year data available, but a sharp 79.4% quarter-over-quarter drop from 1.36x to 0.28x. The low level combined with a declining trend suggests reduced financial risk and less vulnerability to interest rate changes, which could appeal to risk-averse investors. However, this metric alone supports the overall NEUTRAL verdict because the conservative debt profile is a positive, but not enough to shift the stock’s rating to bullish without stronger growth signals.

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