Quick Ratio

The quick ratio measures a company's ability to cover its short-term obligations using its most liquid assets (cash, marketable securities, and receivables) without relying on inventory.

At 0.48x, TJX holds only $0.48 in liquid assets for every $1.00 of current liabilities, indicating a tight liquidity position. This is well below the sector median of 0.76x, and TJX ranks in the 26th percentile among its peers, meaning about three-quarters of sector companies have stronger liquidity. The metric has been stable over the last eight quarters, with no year-over-year change available, and a quarter-over-quarter decrease of 2.0% — a minor decline. The combination of a low quick ratio and a stable, slightly declining trend suggests limited financial flexibility but no sudden deterioration, which implies moderate short-term risk for investors. This metric supports the overall NEUTRAL verdict: the weak liquidity level is a concern, but the stable trend prevents it from being a decisive negative, aligning with a balanced rating.

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