Name: Dollar Tree Inc. (NASDAQ:DLTR) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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Dollar Tree Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Net income (loss)	1,327,900)	1,341,900)	827,000)	(1,590,800)	1,714,300)	896,200)
Goodwill impairment	—)	—)	313,000)	2,727,000)	—)	—)
Receivable impairment	—)	—)	—)	—)	18,500)	—)
Depreciation and amortization	716,000)	686,600)	645,400)	621,100)	611,200)	637,500)
Provision for deferred income taxes	(23,200)	30,700)	9,100)	(12,100)	(473,500)	(124,100)
Stock-based compensation expense	79,900)	83,900)	61,400)	63,100)	65,700)	61,600)
Amortization of debt discount and debt-issuance costs	8,900)	4,000)	6,900)	57,200)	15,400)	55,200)
Other non-cash adjustments to net income (loss)	11,200)	19,000)	24,500)	7,800)	10,900)	9,400)
Loss on debt extinguishment	43,800)	—)	—)	114,700)	—)	—)
Merchandise inventories	(940,400)	97,100)	13,600)	(369,200)	(300,900)	21,900)
Other current assets	(49,900)	1,700)	(8,400)	(21,100)	(117,200)	117,200)
Other assets	(2,600)	(7,000)	8,200)	900)	2,600)	—)
Accounts payable	403,800)	142,600)	(79,800)	242,600)	54,500)	(133,800)
Income taxes payable	(3,700)	23,600)	2,700)	28,500)	(58,500)	77,100)
Other current liabilities	(36,500)	203,400)	24,300)	(105,400)	(22,700)	30,400)
Other liabilities	(98,200)	88,200)	(14,600)	1,700)	(10,100)	24,700)
Operating lease right-of-use assets and liabilities, net	(5,500)	600)	36,500)	—)	—)	—)
Changes in operating assets and liabilities	(733,000)	550,200)	(17,500)	(222,000)	(452,300)	137,500)
Adjustments to reconcile net income (loss) to net cash provided by operating activities	103,600)	1,374,400)	1,042,800)	3,356,800)	(204,100)	777,100)
Net cash provided by operating activities	1,431,500)	2,716,300)	1,869,800)	1,766,000)	1,510,200)	1,673,300)
Capital expenditures	(1,021,200)	(898,800)	(1,034,800)	(817,100)	(632,200)	(564,700)
Proceeds from governmental grant	2,900)	—)	16,500)	—)	—)	—)
Purchase of restricted investments	—)	—)	—)	—)	—)	(36,100)
Proceeds from (payments for) fixed asset disposition	(1,600)	9,100)	(1,900)	400)	300)	(900)
Proceeds from sale of unrestricted investments	—)	—)	—)	—)	4,000)	118,100)
Net cash used in investing activities	(1,019,900)	(889,700)	(1,020,200)	(816,700)	(627,900)	(483,600)
Proceeds from long-term debt, net of discount	1,197,400)	—)	—)	4,775,800)	—)	2,962,500)
Principal payments for long-term debt	(1,000,000)	(550,000)	(500,000)	(6,214,700)	(659,100)	(4,036,200)
Debt-issuance and debt extinguishment costs	(59,300)	—)	—)	(155,300)	—)	(6,100)
Proceeds from revolving credit facility	—)	750,000)	—)	50,000)	—)	140,000)
Repayments of revolving credit facility	—)	(750,000)	—)	(50,000)	—)	(140,000)
Proceeds from stock issued pursuant to stock-based compensation plans	17,800)	17,000)	15,200)	17,500)	35,000)	41,500)
Cash paid for taxes on exercises/vesting of stock-based compensation	(42,400)	(16,900)	(25,000)	(23,200)	(27,400)	(22,200)
Payments for repurchase of stock	(950,000)	(400,000)	(200,000)	—)	—)	—)
Net cash used in financing activities	(836,500)	(949,900)	(709,800)	(1,599,900)	(651,500)	(1,060,500)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(400)	900)	(500)	(500)	600)	1,100)
Net increase (decrease) in cash, cash equivalents and restricted cash	(425,300)	877,600)	139,300)	(651,100)	231,400)	130,300)
Cash, cash equivalents and restricted cash at beginning of year	1,463,600)	586,000)	446,700)	1,097,800)	866,400)	736,100)
Cash, cash equivalents and restricted cash at end of year	1,038,300)	1,463,600)	586,000)	446,700)	1,097,800)	866,400)

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).

The analysis of cash flow activities from 2017 to 2022 reveals a company characterized by volatile net income but resilient operating cash flows, coupled with aggressive capital expenditure and a shifting strategy toward shareholder returns.

Operating Cash Flow Dynamics: Net income exhibited significant volatility, notably experiencing a substantial loss of 1.59 billion in 2019. However, this loss was primarily driven by a non-cash goodwill impairment of 2.73 billion in the same period. Consequently, net cash provided by operating activities remained positive and relatively stable, ranging from 1.43 billion to 2.72 billion across the six-year period. The peak operating cash flow occurred in 2021 at 2.72 billion, despite net income being lower than its 2018 peak, indicating strong cash generation capabilities independent of accounting impairments.
Investment and Capital Expenditure Trends: A consistent upward trend in capital expenditures is observed, rising from 564.7 million in 2017 to 1.02 billion in 2022. This indicates a sustained and increasing commitment to infrastructure and store expansion. Net cash used in investing activities has remained negative throughout the period, with the outflow intensifying as CapEx grew, peaking at approximately 1.02 billion in both 2020 and 2022.
Financing Activities and Capital Structure: Financing activities are marked by significant debt cycling and an increasing emphasis on equity redemption. Large-scale debt proceeds and principal repayments were prominent in 2017 and 2019, suggesting active refinancing strategies. Starting in 2020, a new trend of stock repurchases emerged, increasing from 200 million in 2020 to 950 million in 2022. This shift suggests a transition from focusing on growth and debt management toward returning capital to shareholders.
Liquidity and Cash Position: The cash and restricted cash balance at the end of the year fluctuated, reaching a peak of 1.46 billion in 2021 before declining to 1.04 billion in 2022. The decrease in 2022 is attributable to a combination of high capital expenditures and the significant increase in share repurchases, which together exceeded the cash generated from operations.

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