An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.

Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)
Adjustments to Financial Statements for Operating Leases
Adjusted Financial Ratios for Operating Leases (Summary)
Adjusted Total Asset Turnover
Adjusted Debt to Equity
Adjusted Return on Assets (ROA)

Dollar Tree Inc., future operating lease payments (before adoption of FASB Topic 842)

US$ in thousands

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Total undiscounted future operating lease payments	—	—	—	7,307,600)	7,403,200)	7,209,300)
Discount rate¹	—	—	—	3.96%	4.76%	4.40%

Total present value of future operating lease payments	—	—	—	6,325,087)	6,197,068)	6,104,078)

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).

¹ Weighted-average interest rate for Dollar Tree Inc. debt

2019 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 3.96%
2020	1,435,900)	2020	1,435,900)	1,381,204)
2021	1,176,700)	2021	1,176,700)	1,088,763)
2022	1,100,000)	2022	1,100,000)	979,025)
2023	899,600)	2023	899,600)	770,166)
2024	729,100)	2024	729,100)	600,421)
2025 and thereafter	1,966,300)	2025	729,100)	577,550)
		2026	729,100)	555,550)
		2027	508,100)	372,408)
Total:	7,307,600)		7,307,600)	6,325,087)

Based on: 10-K (reporting date: 2019-02-02).

2018 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 4.76%
2019	1,381,500)	2019	1,381,500)	1,318,729)
2020	1,244,600)	2020	1,244,600)	1,134,067)
2021	1,030,300)	2021	1,030,300)	896,143)
2022	894,600)	2022	894,600)	742,757)
2023	695,800)	2023	695,800)	551,451)
2024 and thereafter	2,156,400)	2024	695,800)	526,395)
		2025	695,800)	502,477)
		2026	695,800)	479,646)
		2027	69,000)	45,404)
Total:	7,403,200)		7,403,200)	6,197,068)

Based on: 10-K (reporting date: 2018-02-03).

2017 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 4.40%
2018	1,369,500)	2018	1,369,500)	1,311,782)
2019	1,180,400)	2019	1,180,400)	1,082,999)
2020	1,021,700)	2020	1,021,700)	897,887)
2021	815,900)	2021	815,900)	686,807)
2022	670,900)	2022	670,900)	540,948)
2023 and thereafter	2,150,900)	2023	670,900)	518,149)
		2024	670,900)	496,311)
		2025	670,900)	475,394)
		2026	138,200)	93,800)
Total:	7,209,300)		7,209,300)	6,104,078)

Based on: 10-K (reporting date: 2017-01-28).

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Dollar Tree Inc., adjustments to financial statements

US$ in thousands

	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)
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)¹	—)	—)	—)	6,325,087)	6,197,068)	6,104,078)
Total assets (adjusted)	21,721,800)	20,696,000)	19,574,600)	19,826,287)	22,529,868)	21,805,678)
Adjustment to Total Debt
Total debt (as reported)	3,417,000)	3,226,200)	3,772,200)	4,265,300)	5,678,000)	6,321,800)
Add: Operating lease liability (before adoption of FASB Topic 842)²	—)	—)	—)	6,325,087)	6,197,068)	6,104,078)
Add: Current portion of operating lease liabilities	1,407,800)	1,348,200)	1,279,300)	—)	—)	—)
Add: Operating lease liabilities, long-term	5,145,500)	5,065,500)	4,979,500)	—)	—)	—)
Total debt (adjusted)	9,970,300)	9,639,900)	10,031,000)	10,590,387)	11,875,068)	12,425,878)

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).

^{1, 2} Equal to total present value of future operating lease payments.

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

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Dollar Tree Inc., adjusted financial ratios

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Total Asset Turnover¹
Reported total asset turnover	1.21	1.23	1.21	1.69	1.36	1.32
Adjusted total asset turnover	1.21	1.23	1.21	1.15	0.99	0.95
Debt to Equity²
Reported debt to equity	0.44	0.44	0.60	0.76	0.79	1.17
Adjusted debt to equity	1.29	1.32	1.60	1.88	1.65	2.31
Return on Assets³ (ROA)
Reported ROA	6.11%	6.48%	4.22%	-11.78%	10.50%	5.71%
Adjusted ROA	6.11%	6.48%	4.22%	-8.02%	7.61%	4.11%

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).

¹ See details »

² See details »

³ See details »

Financial 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 slightly deteriorated from 2021 to 2022 not reaching 2020 level.
Adjusted debt to equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	Dollar Tree Inc. adjusted debt to equity ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted ROA	A profitability ratio calculated as 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.

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

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	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 Operating Leases
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	21,721,800)	20,696,000)	19,574,600)	19,826,287)	22,529,868)	21,805,678)
Activity Ratio
Adjusted total asset turnover²	1.21	1.23	1.21	1.15	0.99	0.95

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 ÷ 21,721,800 = 1.21

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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 slightly deteriorated from 2021 to 2022 not reaching 2020 level.

	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 debt	3,417,000)	3,226,200)	3,772,200)	4,265,300)	5,678,000)	6,321,800)
Shareholders’ equity	7,718,500)	7,285,300)	6,254,800)	5,642,900)	7,182,300)	5,389,500)
Solvency Ratio
Debt to equity¹	0.44	0.44	0.60	0.76	0.79	1.17
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Adjusted total debt	9,970,300)	9,639,900)	10,031,000)	10,590,387)	11,875,068)	12,425,878)
Shareholders’ equity	7,718,500)	7,285,300)	6,254,800)	5,642,900)	7,182,300)	5,389,500)
Solvency Ratio
Adjusted debt to equity²	1.29	1.32	1.60	1.88	1.65	2.31

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 Debt to equity = Total debt ÷ Shareholders’ equity
= 3,417,000 ÷ 7,718,500 = 0.44

² Adjusted debt to equity = Adjusted total debt ÷ Shareholders’ equity
= 9,970,300 ÷ 7,718,500 = 1.29

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Solvency ratio	Description	The company
Adjusted debt-to-equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	Dollar Tree Inc. adjusted debt-to-equity ratio improved from 2020 to 2021 and from 2021 to 2022.

	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 Operating Leases
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)
Adjusted total assets	21,721,800)	20,696,000)	19,574,600)	19,826,287)	22,529,868)	21,805,678)
Profitability Ratio
Adjusted ROA²	6.11%	6.48%	4.22%	-8.02%	7.61%	4.11%

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

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as 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.

Dollar Tree Inc. (NASDAQ:DLTR)

Analysis of Operating Leases

Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)

Adjustments to Financial Statements for Operating Leases

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

Adjusted Financial Ratios for Operating Leases (Summary)

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

Adjusted Total Asset Turnover

Adjusted Debt to Equity

Adjusted Return on Assets (ROA)