Operating Profit Margin
since 2005
Calculation
Dollar Tree Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income (loss)1 | ÷ | Net sales1 | |
|---|---|---|---|---|---|---|---|
| Jan 29, 2022 | 6.88% | = | 100 | × | 1,811,400) | ÷ | 26,309,800) |
| Jan 30, 2021 | 7.40% | = | 100 | × | 1,887,900) | ÷ | 25,508,400) |
| Feb 1, 2020 | 5.35% | = | 100 | × | 1,262,200) | ÷ | 23,610,800) |
| Feb 2, 2019 | -4.12% | = | 100 | × | (939,500) | ÷ | 22,823,300) |
| Feb 3, 2018 | 8.99% | = | 100 | × | 1,999,100) | ÷ | 22,245,500) |
| Jan 28, 2017 | 8.23% | = | 100 | × | 1,704,800) | ÷ | 20,719,200) |
| Jan 30, 2016 | 6.77% | = | 100 | × | 1,049,700) | ÷ | 15,498,400) |
| Jan 31, 2015 | 12.09% | = | 100 | × | 1,040,200) | ÷ | 8,602,200) |
| Feb 1, 2014 | 12.38% | = | 100 | × | 970,300) | ÷ | 7,840,300) |
| Feb 2, 2013 | 12.44% | = | 100 | × | 920,100) | ÷ | 7,394,500) |
| Jan 28, 2012 | 11.80% | = | 100 | × | 782,100) | ÷ | 6,630,500) |
| Jan 29, 2011 | 10.71% | = | 100 | × | 630,000) | ÷ | 5,882,400) |
| Jan 30, 2010 | 9.80% | = | 100 | × | 512,800) | ÷ | 5,231,200) |
| Jan 31, 2009 | 7.88% | = | 100 | × | 365,800) | ÷ | 4,644,900) |
| Feb 2, 2008 | 7.79% | = | 100 | × | 330,300) | ÷ | 4,242,600) |
| Feb 3, 2007 | 7.83% | = | 100 | × | 310,800) | ÷ | 3,969,400) |
| Jan 28, 2006 | 8.35% | = | 100 | × | 283,239) | ÷ | 3,393,924) |
| Jan 29, 2005 | 9.39% | = | 100 | × | 293,551) | ÷ | 3,126,009) |
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), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02), 10-K (reporting date: 2012-01-28), 10-K (reporting date: 2011-01-29), 10-K (reporting date: 2010-01-30), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-02-02), 10-K (reporting date: 2007-02-03), 10-K (reporting date: 2006-01-28), 10-K (reporting date: 2005-01-29).
1 US$ in thousands
The financial data reveals several notable trends in the company's operating performance and sales over the years under review. Net sales consistently increased from approximately 3.13 billion US dollars in early 2005 to 26.31 billion US dollars by early 2022, demonstrating sustained revenue growth. This trend suggests effective market expansion or enhanced sales strategies supporting steadily rising top-line figures.
Operating income generally followed an upward trajectory, rising from about 294 million US dollars in 2005 to a peak of nearly 2 billion US dollars in early 2018. However, there was a significant deviation in 2019, where operating income reported a substantial loss of approximately 940 million US dollars. This sharp downturn contrasts with the overall positive trend and likely indicates extraordinary expenses or operational challenges during that fiscal year. Post-2019, operating income recovered strongly, reaching roughly 1.81 billion US dollars by early 2022, which reflects a successful rebound in operational profitability.
The operating profit margin exhibited a similar pattern with some fluctuations. Starting at 9.39% in 2005, margins experienced a gradual decline until 2008, hovering around 7.7% to 7.9%. From 2009 through early 2015, the margin improved consistently, reaching a high of 12.44% in 2013, indicating enhanced operational efficiency or favorable cost management during this period. Notably, in 2016, the margin dropped sharply to 6.77%, followed by a modest recovery in subsequent years. The drastic negative margin in 2019 (-4.12%) corresponds with the operating loss reported, which significantly impacted profitability ratios. Margins returned to positive territory after 2019, reaching 6.88% by early 2022 but remained below the earlier peak levels, suggesting continued efforts to stabilize profitability.
Overall, the data reflects long-term growth in sales coupled with generally improving but somewhat volatile operating profitability. The substantial loss in 2019 represents a key anomaly, after which the company demonstrated resilience by recovering both operating income and profit margins. The fluctuations in operating margin relative to sales growth imply variations in cost structure, pricing strategies, or external market conditions influencing profitability across years.
Comparison to Competitors
Dollar Tree Inc., operating profit margin, long-term trends, comparison to competitors
| Dollar Tree Inc. | Costco Wholesale Corp. | Target Corp. | Walmart Inc. | |
|---|---|---|---|---|
| Jan 29, 2022 | 6.88% | 3.50% | 8.44% | 4.57% |
| Jan 30, 2021 | 7.40% | 3.49% | 6.99% | 4.06% |
| Feb 1, 2020 | 5.35% | 3.33% | 5.96% | 3.96% |
| Feb 2, 2019 | -4.12% | 3.17% | 5.45% | 4.30% |
| Feb 3, 2018 | 8.99% | 3.24% | 6.00% | 4.12% |
| Jan 28, 2017 | 8.23% | 3.26% | 7.15% | 4.73% |
| Jan 30, 2016 | 6.77% | 3.16% | 7.49% | 5.04% |
| Jan 31, 2015 | 12.09% | 3.19% | 6.25% | 5.63% |
| Feb 1, 2014 | 12.38% | 2.92% | 5.83% | 5.68% |
| Feb 2, 2013 | 12.44% | 2.97% | 7.33% | 5.96% |
| Jan 28, 2012 | 11.80% | 2.84% | 7.62% | 5.98% |
| Jan 29, 2011 | 10.71% | 2.80% | 7.79% | 6.10% |
| Jan 30, 2010 | 9.80% | 2.72% | 7.15% | 5.91% |
| Jan 31, 2009 | 7.88% | 2.54% | 6.78% | 5.68% |
| Feb 2, 2008 | 7.79% | 2.77% | 8.32% | 5.87% |
| Feb 3, 2007 | 7.83% | 2.55% | 8.52% | 5.94% |
| Jan 28, 2006 | 8.35% | 2.76% | 8.22% | 5.93% |
| Jan 29, 2005 | 9.39% | 2.84% | 7.69% | 5.99% |
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), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02), 10-K (reporting date: 2012-01-28), 10-K (reporting date: 2011-01-29), 10-K (reporting date: 2010-01-30), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-02-02), 10-K (reporting date: 2007-02-03), 10-K (reporting date: 2006-01-28), 10-K (reporting date: 2005-01-29).