Common-Size Balance Sheet: Assets
Quarterly Data
Dollar Tree Inc., common-size consolidated balance sheet: assets (quarterly data)
Based on: 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05), 10-K (reporting date: 2018-02-03), 10-Q (reporting date: 2017-10-28), 10-Q (reporting date: 2017-07-29), 10-Q (reporting date: 2017-04-29), 10-K (reporting date: 2017-01-28), 10-Q (reporting date: 2016-10-29), 10-Q (reporting date: 2016-07-30), 10-Q (reporting date: 2016-04-30).
The asset composition of the company underwent a significant structural transformation between April 2016 and October 2022. The most prominent shift is the transition from a balance sheet heavily weighted toward goodwill and intangible assets to one characterized by operating lease right-of-use assets and increasing inventory levels.
- Liquidity and Working Capital Trends
- Cash and cash equivalents exhibited significant volatility, fluctuating between a low of 1.92% in October 2022 and a peak of 8.57% in May 2020. Simultaneously, merchandise inventories showed a long-term upward trajectory, rising from approximately 18% in 2016 to a peak of 24.70% by October 2022. This indicates a growing proportion of total assets is tied up in unsold goods, which may suggest changes in supply chain strategy or slowing inventory turnover toward the end of the period.
- Structural Accounting Shifts
- A fundamental change in asset reporting occurred in May 2019 with the introduction of operating lease right-of-use assets, which immediately represented 31.57% of total assets. These assets remained a dominant component of the balance sheet, stabilizing between 27.99% and 31.80% through October 2022. This emergence coincides with the cessation of reporting for favorable lease rights, suggesting a transition in accounting standards for lease obligations.
- Decline in Intangible Assets
- There is a marked and consistent reduction in the weight of intangible assets. Goodwill, which initially accounted for over 31% of total assets in 2016, experienced a sharp decline starting in February 2019 and continued to erode to 8.65% by October 2022. Similarly, trade name intangible assets decreased from 19.30% in April 2016 to 13.53% in October 2022. This persistent downward trend suggests significant impairment charges or systematic amortization of acquired intangibles.
- Fixed Asset and Noncurrent Asset Stability
- Property, plant, and equipment remained relatively stable as a percentage of total assets, generally hovering around the 20% mark, despite a temporary spike to 25.52% in February 2019. Overall noncurrent assets stayed consistent, ranging between 68% and 78% of the total asset base, reflecting a business model that maintains a heavy reliance on long-term infrastructure and leasehold interests rather than liquid current assets.
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