Dollar Tree Inc. (NASDAQ:DLTR)

Land

Over the six-year period, the value of land increased steadily from $193.8 million in 2017 to $239.7 million in 2022. This represents a moderate growth trend, reflecting ongoing investments or acquisitions in land assets.

Buildings

The book value of buildings showed consistent annual increases, rising from approximately $1.045 billion in 2017 to $1.568 billion in 2022. The growth rate accelerated notably between 2018 and 2019, indicating significant capital expenditures or expansions during that time.

Leasehold improvements

This category experienced continuous and substantial growth throughout the period, increasing from $1.69 billion in 2017 to $2.84 billion in 2022. The steady upward trend suggests ongoing enhancements and upgrades to leased properties, with particularly strong increments between 2019 and 2022.

Furniture, fixtures and equipment

The value of furniture, fixtures, and equipment rose consistently from $2.74 billion in 2017 to $4.70 billion in 2022. This represents a sustained investment in operational assets, with increasing expenditures evident year over year.

Construction in progress

Construction in progress displays more variability compared to other asset categories. Starting at $146 million in 2017, it increased to $228.8 million in 2018, remained relatively stable through 2020, dipped to $257.5 million in 2021, and then surged sharply to $489 million in 2022. This suggests fluctuating project activity with a significant ramp-up in construction activities in the latest year.

Property, plant and equipment, gross

The gross property, plant, and equipment balances show a strong and consistent upward trend, growing from $5.81 billion in 2017 to $9.84 billion in 2022. This accumulation reflects significant capital investments and asset additions over the period.

Accumulated depreciation

Accumulated depreciation steadily increased in absolute terms, from -$2.69 billion in 2017 to -$5.36 billion in 2022. The consistent increase is indicative of ongoing systematic allocation of cost over asset useful lives, aligned with asset growth.

Property, plant and equipment, net

Net property, plant, and equipment balances increased from $3.12 billion in 2017 to $4.48 billion in 2022. The net asset growth is positive and steady, underscoring the impact of ongoing capital expenditures exceeding depreciation expenses. The upward trend suggests expansion and reinforcement of the asset base over time.

Average Age Ratio

The average age ratio shows a consistent upward trend from 47.97% in early 2017 to 55.86% by early 2022. This indicates that the property, plant, and equipment are aging progressively over the years, with a steady increase in the proportion of the asset's useful life that has elapsed.

Estimated Total Useful Life

The estimated total useful life of the assets has increased from 10 years in 2017 to 14 years in 2021 and remained stable in 2022. This suggests a revision or extension in the expected operational duration of the assets, possibly reflecting improved asset management, maintenance practices, or changes in depreciation policy.

Estimated Age, Time Elapsed Since Purchase

The estimated age of the assets has risen from 5 years in 2017 to 8 years by 2021 and 2022. The increase follows a steady annual progression, reflecting the natural aging of the asset base over the observed period.

Estimated Remaining Life

The estimated remaining life initially increased from 5 years in 2017 to 6 years in 2018 and then remained constant at 6 years through to 2022. This suggests that despite the aging assets, the remaining useful life is maintained, likely due to the extension in total useful life conveyed by updated estimates.

Accumulated Depreciation

The accumulated depreciation exhibits a consistent upward trend over the six-year period. Starting at approximately $2.69 billion in early 2017, it increased steadily each year, reaching about $5.36 billion by early 2022. This indicates ongoing depreciation expense associated with the company’s property, plant, and equipment assets, reflecting either aging assets or continued investment in depreciable fixed assets.

Property, Plant, and Equipment, Gross

The gross value of property, plant, and equipment demonstrates a strong, steady growth trend from around $5.81 billion in early 2017 to nearly $9.84 billion by early 2022. This growth reflects a significant increase in capital investment over the observed period, suggesting a strategic expansion or upgrade of physical assets.

Land

Land values show modest but steady increases, growing from $193.8 million to $239.7 million during the six years. This relatively stable growth indicates acquisitions or revaluations of land assets at a slower pace compared to the overall property, plant, and equipment portfolio.

Average Age Ratio

The average age ratio, representing the proportional age of the company's fixed assets, rises from approximately 48% to 56%. This gradual increase suggests that the asset base is aging over time, despite ongoing investments. It may indicate that new asset acquisitions or replacements are not fully offsetting the aging of existing assets.

Property, Plant and Equipment, Gross

The gross value of property, plant, and equipment exhibits a consistent and significant upward trend from 5,810,300 thousand USD in early 2017 to 9,841,100 thousand USD in early 2022. This represents an approximate 69% increase over the six-year period, indicating substantial investment in fixed assets during this timeframe.

Land

The value attributed to land shows a gradual increase from 193,800 thousand USD in 2017 to 239,700 thousand USD in 2022. The growth is modest relative to the total gross property, plant, and equipment, rising roughly 24% over the period, suggesting incremental acquisitions or revaluations of land holdings.

Depreciation Expense

Depreciation expense demonstrates a generally upward trajectory with some minor fluctuations. Starting at 561,800 thousand USD in 2017, it decreased slightly in 2018 to 542,000 thousand USD, then increased continuously through 2022 to 672,000 thousand USD. This movement reflects both the aging asset base and continued capital expenditures, aligning with the expanded gross asset base.

Estimated Total Useful Life

The estimated total useful life of assets has increased progressively from 10 years in 2017 to 14 years by 2021, remaining constant thereafter in 2022. This lengthening suggests either changes in asset composition towards longer-lived assets, improvements in asset durability, or changes in accounting estimates related to asset usage or maintenance policies.

The financial data on property, plant, and equipment reveals notable trends in accumulated depreciation, depreciation expense, and asset aging over the observed periods from 2017 to 2022.

Accumulated Depreciation

The accumulated depreciation shows a steady and consistent increase each year, rising from approximately $2.69 billion in 2017 to about $5.36 billion in 2022. This gradual escalation indicates ongoing asset depreciation and reflects the aging of the company's fixed assets over the six-year period.

Depreciation Expense

The depreciation expense exhibits minor fluctuations but follows an overall upward trajectory. Starting at approximately $561.8 million in 2017, it slightly decreased in 2018 but then generally increased annually, reaching $672 million in 2022. This suggests a consistent recognition of depreciation costs, potentially due to acquisitions of additional assets or changes in depreciation methods or useful lives.

Time Elapsed Since Purchase

The average time elapsed since purchase indicates the age of assets, which increased from 5 years in 2017 to 8 years by 2022. The plateau of 7 years in 2019 and 2020 followed by an increase to 8 years thereafter may imply a stabilization in asset renewal before acquiring newer assets or changing asset composition.

Overall, the data demonstrates that the company's fixed assets are aging as indicated by the increasing accumulated depreciation and the average asset age. The rising depreciation expense aligns with this aging trend, reflecting ongoing costs associated with asset wear and consumption. There are no indications of significant asset disposals or abrupt changes in asset valuation within the periods presented.

Property, Plant, and Equipment, Net

The net value of property, plant, and equipment demonstrates a steady increase over the six-year period, rising from approximately $3.12 billion in early 2017 to about $4.48 billion by early 2022. This trend indicates consistent investment or acquisition of fixed assets, reflecting growth or enhancement in the company's operational capacity.

Land

The value attributed to land assets shows a moderate upward trajectory, increasing from $193.8 million in 2017 to $239.7 million in 2022. The growth in land value is relatively gradual compared to the overall property, plant, and equipment net value, suggesting either limited land acquisition or stable land valuation over the years.

Depreciation Expense

Depreciation expense fluctuates slightly but exhibits an overall rising trend, starting at $561.8 million in 2017 and increasing to $672 million by 2022. This increase implies not only the addition of assets subject to depreciation but also potentially reflects increased use or aging of existing assets, contributing to higher annual depreciation charges.

Estimated Remaining Life

The estimated remaining life of the assets remains relatively stable throughout the period, noted at 5 years in 2017 and increasing to 6 years from 2018 onward. This stability suggests consistent asset replacement policies or longevity expectations for the company's fixed assets.