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Canadian Tire
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Capital Management

TSX : CTC.A. 191.33 Change (%) +0.68 +0.36% Volume: 407,411 min 20 min delay > More Stock Info > Plus sur les actions February 27, 2026

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

  • ensure sufficient liquidity with the flexibility to access additional capital from multiple sources, if required; to meet financial obligations as they come due and to support the execution of operating and strategic plans; 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 with a long-term perspective, aiming to balance cost of capital, capital efficiency, financial flexibility, and risk mitigation. To support this objective, Management monitors key leverage metrics, which are calculated using ratios that approximate the methodologies of credit rating agencies and other market participants. These metrics are reviewed on both a current and forward-looking basis and are assessed against targeted ranges to evaluate the effectiveness in managing leverage.

In order to maintain or adjust the capital structure, the Company has the flexibility to adjust discretionary capital spending, adjust the amount of credit card loans receivables outstanding, issue debt or equity, early redeem outstanding debt, repurchase its Class A Non-Voting Shares, adjust the amount of dividends paid to shareholders, monetize various assets, and engage in sale and leaseback transactions of real estate properties.

As of January 3, 2026, 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 December 31, 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:

  • 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 the end of Q4 2025, the Bank was in compliance with all applicable regulatory capital requirements established by OSFI, and had achieved its internal targets as determined through its ICAAP.