Canadian Tire Corporation’s (CTC's) objectives when managing capital are:
- ensuring sufficient liquidity to meet its financial obligations when due and execute its operating and strategic plans
- maintaining healthy liquidity reserves and the ability to access additional capital from multiple sources, if required; and
- minimizing its after-tax cost of capital while taking into consideration 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 capital efficiency,
financial flexibility, and risk mitigation. Management calculates ratios to approximate the methodologies of creditrating 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.
Canadian Tire Corporation, Limited was compliant with all financial covenants under its bank credit agreements as
of July 1, 2023. 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
compliant with all financial covenants thereunder as of July 1, 2023.
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 compliant with all financial covenants
thereunder as of July 1, 2023.