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Canadian Tire
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Capital Management

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. 

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, which came into effect in Canada on January 1, 2013, and measures capital in relation to credit, market, and operational risks. The Bank has various capital policies, procedures, and controls in place, including an annual Internal Capital Adequacy Assessment Process (“ICAAP”), which it utilizes to achieve its goals and objectives.

The Bank’s objectives include:

  • maintaining strong capital ratios, as measured by regulatory guidelines and internal targets; and
  • holding sufficient capital to maintain the confidence of investors and depositors.

CTB, a federally chartered bank, is required to comply with regulatory requirements for capital and other regulatory requirements that have an impact on its business operations and certain covenants established under its bank credit agreements. As of July 1, 2023, CTB complied with all regulatory capital guidelines established by the Office of the Superintendent of Financial Institutions and all financial covenants under its bank credit agreements.