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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 executing 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 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 targeted ranges.

Canadian Tire Corporation, Limited was compliant with all financial covenants under its bank credit agreements as of June 29, 2024.  

Helly Hansen is required to comply with covenants established under its bank overdraft agreement and was compliant with all financial covenants thereunder as of June 29, 2024.

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 June 29, 2024. 

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. Basel III is a global regulatory accord that was introduced to enhance the reputation, supervision, and risk management practices within the banking sector. The Bank has implemented several capital policies, procedures, and controls, including an annual Internal Capital Adequacy Assessment Process (“ICAAP”). These measures support the Bank in achieving its goals and objectives.

The Bank’s objectives include maintaining capital to:

  • 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 possible operating and investment losses.

As at Q2, 2024, CTB complied with all regulatory capital guidelines established by OSFI, and its internal targets as determined by its ICAAP.