On Feb. 22, TJX (NYSE:TJX) released full-year 2005 earnings for the period ended Jan. 28, 2006.

  • Revenue increased 8% on same-store sales growth of 2%.
  • Operating cash flow grew 8%, but higher capital expenditures reduced free cash flow growth to just 2%.
  • Operating margins slipped slightly.

(Figures in millions, except per-share data)
Income Statement Highlights

Avg. Est.

2005

2004

% Change

Sales

$6,040

$16,058

$14,913

+7.7%

Net Profit

--

$690

$610

+13.2%

EPS

$ .34

$1.41

$1.21

+16.5%



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

Margin Checkup

2005

2004

Change

Gross Margin

23.43%

23.57%

(0.13%)

Op. Margin

6.47%

6.80%

(0.33%)

Net Margin

4.30%

4.09%

+0.21%



Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

2005

2004

% Change

Cash + ST Invest.

$466

$307

+51.6%

Inventory

$2,366

$2,352

+0.6%

Accounts Rec.

$309

$246

+25.5%



Liabilities

2005

2004

% Change

Long-Term Debt

$783

$573

+36.7%

Accounts Pay.

$1,314

$1,276

+2.9%



See inventories at work.

Cash Flow Highlights

2005

2004

% Change

Cash From Ops.

$1,158

$1,077

+7.6%

Capital Expend.

$496

$429

+15.6%

Free Cash Flow

$662

$648

+2.3%



Related Companies:

  • Dollar Tree (NASDAQ:DLTR)
  • Payless Shoesource (NYSE:PSS)
  • Ross Stores (NASDAQ:ROST)
  • Target (NYSE:TGT)
  • Wal-Mart (NYSE:WMT)

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At the time of publication, Fool analyst Andy Cross did not own shares in any company mentioned. Fool rules are here.