TJX Continues to Perform: Fool by Numbers

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On Nov. 14, TJX Companies (NYSE: TJX), the parent company of T.J. Maxx, released third-quarter earnings for the period ended Oct. 28.

• The balance sheet remains strong, and working capital accounts (accounts receivable, accounts payable, and inventory) continue to track sales growth.
• Free cash flow continues to improve dramatically over last year as the company becomes more judicious in its expansion.
• Same-store sales increased by 6% and 76 stores were added in Q3.
• TJX has a total of 48 ratings in CAPS, with 90% of the ratings giving TJX a thumbs up.

(Figures in thousands, except per-share data)

Income Statement Highlights

	Q3 2006	Q3 2005	Change
Sales	$4,501,073	$4,041,912	11.4%
Net Profit	$230,612	$155,325	48.5%
EPS	$0.48	$0.32	50.0%
Diluted Shares	479,491	486,495	(1.4%)

Get back to basics with a look at the income statement.

Margin Checkup

	Q3 2006	Q3 2005	Change*
Gross Margin	25.42%	24.00%	1.42
Operating Margin	8.49%	6.62%	1.87
Net Margin	5.12%	3.84%	1.28

*Expressed in percentage points

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	Q3 2006	Q3 2005	Change
Cash + ST Invest.	$341,600	$201,019	69.9%
Accounts Rec.	$335,400	$395,800	(15.3%)
Inventory	$3,246,300	$2,913,469	11.4%

Liabilities	Q3 2006	Q3 2005	Change
Accounts Payable	$1,717,100	$1,473,777	16.5%
Long-Term Debt	$794,700	$576,038	38.0%

Learn the ways of the balance sheet.

Cash Flow Highlights

	Q3 2006	Q3 2005	Change
Cash From Ops.	$476,800	$506,600	(5.9%)
Capital Expenditures	$291,800	$401,500	(27.3%)
Free Cash Flow	$185,000	$105,100	76.0%

Find out why Fools always follow the money.

Related Companies:

• Kohl's (NYSE: KSS)
• Federated Department Stores (NYSE: FD)
• Ross Stores (Nasdaq: ROST)

Related Foolishness:

• Relaxing Results From TJ Maxx
• Catching Up With TJX
• Small Concepts Come Up Big at TJX

Want some new stock ideas? Learn more about what CAPS players -- now 12,500 strong -- think of the company you're interested in.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so checkFool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication,Nathan Parmelee had no positions in any of the companies mentioned. Fool rules are here.