Stock Analysis on Net

Dollar Tree Inc. (NASDAQ:DLTR)

This company has been moved to the archive! The financial data has not been updated since November 22, 2022.

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

Dollar Tree Inc., balance sheet: goodwill and intangible assets

US$ in thousands

Microsoft Excel
Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017
Goodwill 1,984,400 1,984,400 1,983,300 2,296,600 5,025,200 5,023,500
Trade name intangible asset 3,100,000 3,100,000 3,100,000 3,100,000 3,100,000 3,100,000
Goodwill and trade name intangible asset 5,084,400 5,084,400 5,083,300 5,396,600 8,125,200 8,123,500

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

Item Description The company
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.
Trade name intangible asset Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.
Goodwill and trade name intangible asset Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.

Adjustments to Financial Statements: Removal of Goodwill

Dollar Tree Inc., adjustments to financial statements

US$ in thousands

Microsoft Excel
Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017
Adjustment to Total Assets
Total assets (as reported) 21,721,800 20,696,000 19,574,600 13,501,200 16,332,800 15,701,600
Less: Goodwill 1,984,400 1,984,400 1,983,300 2,296,600 5,025,200 5,023,500
Total assets (adjusted) 19,737,400 18,711,600 17,591,300 11,204,600 11,307,600 10,678,100
Adjustment to Shareholders’ Equity
Shareholders’ equity (as reported) 7,718,500 7,285,300 6,254,800 5,642,900 7,182,300 5,389,500
Less: Goodwill 1,984,400 1,984,400 1,983,300 2,296,600 5,025,200 5,023,500
Shareholders’ equity (adjusted) 5,734,100 5,300,900 4,271,500 3,346,300 2,157,100 366,000
Adjustment to Net Income (loss)
Net income (loss) (as reported) 1,327,900 1,341,900 827,000 (1,590,800) 1,714,300 896,200
Add: Goodwill impairment 313,000 2,727,000
Net income (loss) (adjusted) 1,327,900 1,341,900 1,140,000 1,136,200 1,714,300 896,200

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).


Dollar Tree Inc., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios: Removal of Goodwill (Summary)

Dollar Tree Inc., adjusted financial ratios

Microsoft Excel
Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017
Net Profit Margin
Reported net profit margin 5.05% 5.26% 3.50% -6.97% 7.71% 4.33%
Adjusted net profit margin 5.05% 5.26% 4.83% 4.98% 7.71% 4.33%
Total Asset Turnover
Reported total asset turnover 1.21 1.23 1.21 1.69 1.36 1.32
Adjusted total asset turnover 1.33 1.36 1.34 2.04 1.97 1.94
Financial Leverage
Reported financial leverage 2.81 2.84 3.13 2.39 2.27 2.91
Adjusted financial leverage 3.44 3.53 4.12 3.35 5.24 29.18
Return on Equity (ROE)
Reported ROE 17.20% 18.42% 13.22% -28.19% 23.87% 16.63%
Adjusted ROE 23.16% 25.31% 26.69% 33.95% 79.47% 244.86%
Return on Assets (ROA)
Reported ROA 6.11% 6.48% 4.22% -11.78% 10.50% 5.71%
Adjusted ROA 6.73% 7.17% 6.48% 10.14% 15.16% 8.39%

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Dollar Tree Inc. adjusted net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Dollar Tree Inc. adjusted total asset turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Dollar Tree Inc. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Dollar Tree Inc. adjusted ROE deteriorated from 2020 to 2021 and from 2021 to 2022.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Dollar Tree Inc. adjusted ROA improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.

Dollar Tree Inc., Financial Ratios: Reported vs. Adjusted


Adjusted Net Profit Margin

Microsoft Excel
Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss) 1,327,900 1,341,900 827,000 (1,590,800) 1,714,300 896,200
Net sales 26,309,800 25,508,400 23,610,800 22,823,300 22,245,500 20,719,200
Profitability Ratio
Net profit margin1 5.05% 5.26% 3.50% -6.97% 7.71% 4.33%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) 1,327,900 1,341,900 1,140,000 1,136,200 1,714,300 896,200
Net sales 26,309,800 25,508,400 23,610,800 22,823,300 22,245,500 20,719,200
Profitability Ratio
Adjusted net profit margin2 5.05% 5.26% 4.83% 4.98% 7.71% 4.33%

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

2022 Calculations

1 Net profit margin = 100 × Net income (loss) ÷ Net sales
= 100 × 1,327,900 ÷ 26,309,800 = 5.05%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) ÷ Net sales
= 100 × 1,327,900 ÷ 26,309,800 = 5.05%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Dollar Tree Inc. adjusted net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

Adjusted Total Asset Turnover

Microsoft Excel
Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net sales 26,309,800 25,508,400 23,610,800 22,823,300 22,245,500 20,719,200
Total assets 21,721,800 20,696,000 19,574,600 13,501,200 16,332,800 15,701,600
Activity Ratio
Total asset turnover1 1.21 1.23 1.21 1.69 1.36 1.32
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net sales 26,309,800 25,508,400 23,610,800 22,823,300 22,245,500 20,719,200
Adjusted total assets 19,737,400 18,711,600 17,591,300 11,204,600 11,307,600 10,678,100
Activity Ratio
Adjusted total asset turnover2 1.33 1.36 1.34 2.04 1.97 1.94

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

2022 Calculations

1 Total asset turnover = Net sales ÷ Total assets
= 26,309,800 ÷ 21,721,800 = 1.21

2 Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 26,309,800 ÷ 19,737,400 = 1.33

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Dollar Tree Inc. adjusted total asset turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Adjusted Financial Leverage

Microsoft Excel
Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017
As Reported
Selected Financial Data (US$ in thousands)
Total assets 21,721,800 20,696,000 19,574,600 13,501,200 16,332,800 15,701,600
Shareholders’ equity 7,718,500 7,285,300 6,254,800 5,642,900 7,182,300 5,389,500
Solvency Ratio
Financial leverage1 2.81 2.84 3.13 2.39 2.27 2.91
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets 19,737,400 18,711,600 17,591,300 11,204,600 11,307,600 10,678,100
Adjusted shareholders’ equity 5,734,100 5,300,900 4,271,500 3,346,300 2,157,100 366,000
Solvency Ratio
Adjusted financial leverage2 3.44 3.53 4.12 3.35 5.24 29.18

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

2022 Calculations

1 Financial leverage = Total assets ÷ Shareholders’ equity
= 21,721,800 ÷ 7,718,500 = 2.81

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 19,737,400 ÷ 5,734,100 = 3.44

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Dollar Tree Inc. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.

Adjusted Return on Equity (ROE)

Microsoft Excel
Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss) 1,327,900 1,341,900 827,000 (1,590,800) 1,714,300 896,200
Shareholders’ equity 7,718,500 7,285,300 6,254,800 5,642,900 7,182,300 5,389,500
Profitability Ratio
ROE1 17.20% 18.42% 13.22% -28.19% 23.87% 16.63%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) 1,327,900 1,341,900 1,140,000 1,136,200 1,714,300 896,200
Adjusted shareholders’ equity 5,734,100 5,300,900 4,271,500 3,346,300 2,157,100 366,000
Profitability Ratio
Adjusted ROE2 23.16% 25.31% 26.69% 33.95% 79.47% 244.86%

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

2022 Calculations

1 ROE = 100 × Net income (loss) ÷ Shareholders’ equity
= 100 × 1,327,900 ÷ 7,718,500 = 17.20%

2 Adjusted ROE = 100 × Adjusted net income (loss) ÷ Adjusted shareholders’ equity
= 100 × 1,327,900 ÷ 5,734,100 = 23.16%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Dollar Tree Inc. adjusted ROE deteriorated from 2020 to 2021 and from 2021 to 2022.

Adjusted Return on Assets (ROA)

Microsoft Excel
Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss) 1,327,900 1,341,900 827,000 (1,590,800) 1,714,300 896,200
Total assets 21,721,800 20,696,000 19,574,600 13,501,200 16,332,800 15,701,600
Profitability Ratio
ROA1 6.11% 6.48% 4.22% -11.78% 10.50% 5.71%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net income (loss) 1,327,900 1,341,900 1,140,000 1,136,200 1,714,300 896,200
Adjusted total assets 19,737,400 18,711,600 17,591,300 11,204,600 11,307,600 10,678,100
Profitability Ratio
Adjusted ROA2 6.73% 7.17% 6.48% 10.14% 15.16% 8.39%

Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).

2022 Calculations

1 ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 1,327,900 ÷ 21,721,800 = 6.11%

2 Adjusted ROA = 100 × Adjusted net income (loss) ÷ Adjusted total assets
= 100 × 1,327,900 ÷ 19,737,400 = 6.73%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Dollar Tree Inc. adjusted ROA improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.