TJXNEUTRAL

Return on Equity (ROE)

61.3%

Updated 342h ago

Sector Performance

92th percentile

TJX

61.3%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for every dollar of shareholders’ equity — at 61.3%, TJX is earning over 61 cents of profit for each dollar of equity.

This is far above the sector median of 13.8%, placing the company in the 93rd percentile among its peers. The year-over-year and quarter-over-quarter changes are not available, and the trend over the last eight quarters is also not reported, so no directional pattern can be assessed. The very high current ROE suggests the company is efficiently using shareholder capital, but the lack of trend data means an investor cannot confirm whether this level is sustainable or improving. This metric alone points to a strong current profit efficiency, but it contradicts the NEUTRAL overall verdict, as a top-decile ROE typically supports a more positive view unless offset by other factors.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about TJX?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are TJX's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.