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Canadian Tire
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Capital Management

TSX : CTC.A. 168.91 Change (%) -0.97 -0.57% Volume: 20,597 min 20 min delay > More Stock Info > Plus sur les actions November 13, 2025

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

  • ensure sufficient liquidity to meet financial obligations as they come due and to support the execution of operating and strategic plans;
  • maintain robust liquidity with the flexibility to access additional capital from multiple sources, if required; and
  • minimize the after-tax cost of capital while considering key risks, including current and future industry, market, and economic 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 used by 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.

As of September 27, 2025, the Company was compliant with all financial covenants under its bank credit agreements, providing sufficient flexibility to support business growth.

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 September 30, 2025.

Canadian Tire Bank's Regulatory Environment

CTB manages its capital in accordance with guidelines established by the Office of the Superintendent of Financial Institutions of Canada (OSFI), which are based on the Basel III framework, developed by the international Basel Committee on Banking Supervision. Basel III, in effect since January 1, 2013 is designed to strengthen regulation, supervision, and risk management in the banking sector.

To comply with these regulations, CTB has implemented several capital policies, procedures, and controls. One key component of this framework is the annual Internal Capital Adequacy Assessment Process (ICAAP), which supports the Bank in achieving its strategic and operational objectives. 

CTB's capital management objectives include:

  • maintaining adequate levels of capital to meet all applicable regulatory requirements;
  • reinforcing confidence in the safety and soundness of the Bank;
  • supporting growth in assets and liabilities; and
  • absorbing unexpected operating and investment losses and volatility.

As at the end of Q3 2025, the Bank complied with all regulatory capital requirements established by OSFI, and its internal targets as determined by its ICAAP.