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Canadian Tire
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Capital Management

Canadian Tire Corporation’s (CTC's) capital management objectives are as follows: 

  • ensure sufficient liquidity to meet financial obligations when due and execute operating and strategic plans;
  • maintain healthy liquidity reserves with the ability to access additional capital from multiple sources, if required; and
  • minimize after-tax cost of capital while taking into consideration the key risks including current and future industry, market, and economic risks and conditions.

The Company manages its capital structure over the long term to optimize the balance among cost of capital, capital efficiency, financial flexibility, and risk mitigation. Management calculates ratios that approximate the methodologies of credit rating agencies and other market participants on a current and prospective basis. To assess its effectiveness in managing leverage, Management monitors these ratios against targeted ranges.

Canadian Tire Corporation, Limited was  in compliance with all financial covenants under its credit agreements as at December 28, 2024. 

Helly Hansen is required to comply with covenants established under its bank overdraft agreement, and was in compliance with all financial covenants thereunder as at December 28, 2024.

CT Real Estate Investment Trust (“CT REIT”) is required to comply with covenants established under its Declaration of Trust, Trust Indenture and bank credit agreement and was in compliance with all financial covenants thereunder as of December 31, 2024. 

Canadian Tire Bank's Regulatory Environment

CTB manages its capital under guidelines established by the Office of the Superintendent of Financial Institutions of Canada (OSFI). OSFI’s regulatory capital guidelines are based on the international Basel Committee on Banking Supervision framework entitled Basel III: A Global Regulatory Framework for More Resilient Banks and Banking Systems (Basel III), which came into effect in Canada on January 1, 2013. Basel III is a global regulatory accord that was introduced to enhance the regulation, supervision, and risk management practices within the banking sector. The Bank has implemented several capital policies, procedures, and controls, including an annual Internal Capital Adequacy Assessment Process (ICAAP). These measures support the Bank in achieving its goals and objectives. 

The Bank’s objectives include maintaining adequate levels of capital to:

  • meet all applicable regulatory requirements; 
  • maintain and reinforce confidence in the safety and soundness of the Bank;
  • support growth in assets and liabilities; and
  • offset unexpected operating and investment losses and volatility

As at December 31, 2024, the Bank complied with all regulatory capital requirements established by OSFI, and its internal targets as determined by its ICAAP.