Canadian Tire Corporation’s (CTC's) objectives when managing capital are:
- ensuring sufficient liquidity to support its financial obligations when due and to execute its operating and strategic plans
- maintaining healthy liquidity reserves and the ability to access additional capital from multiple sources, if required; and
- minimizing the after-tax cost of capital while taking into consideration 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 capital efficiency,
financial flexibility, and risk mitigation. Management calculates ratios to approximate the methodologies of credit
rating agencies and other market participants on a current and prospective basis. To assess its effectiveness in
managing capital, Management monitors these ratios against target ranges for its credit ratings.
Canadian Tire Corporation, Limited was in compliance with all financial covenants under its bank credit
agreements as at October 1, 2022. Under these covenants, the Company has sufficient flexibility to support
business growth.
Helly Hansen is required to comply with covenants established under its bank credit agreements and was in
compliance with all financial covenants thereunder as at October 1, 2022.
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 at October 1, 2022.
In addition, the Company is required to comply with regulatory requirements for capital associated with the
operations of Canadian Tire Bank (“CTB” or the “Bank”), a federally chartered bank, and other regulatory
requirements that have an impact on its business operations and certain covenants established under its bank
credit agreements. As at October 1, 2022, CTB complied with all regulatory capital guidelines established by the
Office of the Superintendent of Financial Institutions of Canada (“OSFI”) and all financial covenants under its bank
credit agreements.