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 operating profit margin exhibited significant volatility between 2005 and 2022, characterized by an initial period of steady growth, a sharp contraction coinciding with rapid revenue expansion, a severe operational outlier, and a subsequent recovery phase.
- Initial Growth and Peak Performance (2005–2013)
- Between 2005 and 2008, the operating profit margin remained relatively stable, fluctuating within a narrow range between 7.79% and 9.39%. Starting in 2009, a consistent upward trend is observed, with the margin expanding annually to reach a peak of 12.44% in 2013. This period was marked by steady growth in both net sales and operating income, indicating improved operational efficiency and scaling capabilities.
- Revenue Expansion and Margin Compression (2014–2018)
- A significant shift occurred between 2014 and 2015, where net sales increased from approximately 7.8 billion to 15.5 billion US dollars. This rapid expansion of the top line coincided with a sharp decline in the operating profit margin, which fell from 12.09% in 2014 to 6.77% in 2015. Following this contraction, a gradual recovery trend was observed through 2018, as the margin climbed back to 8.99%, suggesting a period of integration and operational optimization following a major increase in scale.
- Operational Disruption and Recovery (2019–2022)
- The fiscal year ending February 2019 represents a severe anomaly in the data, with operating income falling to a loss of 939.5 million US dollars, resulting in a negative operating profit margin of -4.12%. This represents the only period of operating loss in the analyzed timeframe. From 2020 onward, a recovery trend is evident; the margin returned to positive territory at 5.35% in 2020 and reached 7.40% in 2021, before settling at 6.88% in 2022.
Overall, while net sales grew substantially over the seventeen-year period, the operating profit margin did not follow a linear trajectory. The data indicates that the company experienced significant margin pressure during periods of rapid growth and a major operational shock in 2019, with recent years showing a stabilization at levels lower than the 2013 peak but higher than the 2015 and 2019 lows.
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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).