TJX Financial Summary

Through the analysis of the balance sheet and income statement of TJX, our company has made a major increase in net sales and assets during 2012 to 2016. TJX provides the numbers in thousands. TJX has gained $1,987,627 in total assets but it also acquired $1,346,489 in total liabilities. Because of the increase in operating expenses, although the gross profit increased almost a million dollars from 2013 to 2015, TJX has only increased in $370,971 of income. Since 2013, TJX’s long term asset has increased by 1.16%. TJX has expanded operations, in terms of opening more stores or increasing our human capital, causing an increase in the cost of sales and operating expenses. This is shown that we are investing our cash to hope create more profit. A company with too high cash liquidity shows that the company is not improving to become better.

With that big amount of cash in the company, TJX decided to use the cash asset to increase our operations because in 2016 the cash asset dropped to $2,095,473 which is only 18.22% of our total assets in 2016. To assist the operations, we also increased our stockholders equity to provide more funds to expand the work. The value of TJX’s stock has increased over the years which shows that more people trust TJX as years progress. Stockholder equity has increased from $3,665,937 to $4,307,075 but it is actually a decease of 1.09% in stockholder equity. This shows that although the amount of stockholder equity increases, it also shows that increase of total assets is not as high as the increase of total liabilities. On the balance sheet it shows that total liabilities makes up about 62.55% of the total assets. Thus it shows that TJX is expanding and trying to create more revenue through the use of debt or other