Return on Equity (ROE)
since 2005
Calculation
Dollar Tree Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss)1 | ÷ | Shareholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Jan 29, 2022 | 17.20% | = | 100 | × | 1,327,900) | ÷ | 7,718,500) |
| Jan 30, 2021 | 18.42% | = | 100 | × | 1,341,900) | ÷ | 7,285,300) |
| Feb 1, 2020 | 13.22% | = | 100 | × | 827,000) | ÷ | 6,254,800) |
| Feb 2, 2019 | -28.19% | = | 100 | × | (1,590,800) | ÷ | 5,642,900) |
| Feb 3, 2018 | 23.87% | = | 100 | × | 1,714,300) | ÷ | 7,182,300) |
| Jan 28, 2017 | 16.63% | = | 100 | × | 896,200) | ÷ | 5,389,500) |
| Jan 30, 2016 | 6.41% | = | 100 | × | 282,400) | ÷ | 4,406,900) |
| Jan 31, 2015 | 33.57% | = | 100 | × | 599,200) | ÷ | 1,785,000) |
| Feb 1, 2014 | 50.97% | = | 100 | × | 596,700) | ÷ | 1,170,700) |
| Feb 2, 2013 | 37.14% | = | 100 | × | 619,300) | ÷ | 1,667,300) |
| Jan 28, 2012 | 36.32% | = | 100 | × | 488,300) | ÷ | 1,344,600) |
| Jan 29, 2011 | 27.23% | = | 100 | × | 397,300) | ÷ | 1,459,000) |
| Jan 30, 2010 | 22.43% | = | 100 | × | 320,500) | ÷ | 1,429,200) |
| Jan 31, 2009 | 18.31% | = | 100 | × | 229,500) | ÷ | 1,253,200) |
| Feb 2, 2008 | 20.37% | = | 100 | × | 201,300) | ÷ | 988,400) |
| Feb 3, 2007 | 16.44% | = | 100 | × | 192,000) | ÷ | 1,167,700) |
| Jan 28, 2006 | 14.84% | = | 100 | × | 173,918) | ÷ | 1,172,275) |
| Jan 29, 2005 | 15.48% | = | 100 | × | 180,250) | ÷ | 1,164,212) |
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 performance from 2005 to 2022 is characterized by a prolonged period of growth in profitability and return on equity, followed by a phase of significant volatility and eventual stabilization.
- Growth and Peak Performance (2005–2014)
- A consistent upward trend in return on equity (ROE) is observed from 2005 to 2014, starting at 15.48% and reaching a peak of 50.97%. This growth was primarily driven by a steady increase in net income, which rose from $180.25 million in 2005 to $596.7 million in 2014, while shareholders' equity remained relatively stable for the first decade of this period.
- Equity Expansion and Volatility (2015–2019)
- Between 2015 and 2018, there was a substantial increase in shareholders' equity, which grew from $1.78 billion to $7.18 billion. This rapid expansion of the equity base contributed to a compression of ROE, including a sharp decline to 6.41% in 2016. The most significant volatility occurred in 2019, where a net loss of $1.59 billion led to a negative ROE of -28.19%.
- Recovery and Stabilization (2020–2022)
- A recovery phase is evident from 2020 onward, as net income returned to positive values, climbing to $1.33 billion by 2022. During this period, ROE stabilized within a range of 13.22% to 18.42%. While these levels are lower than the 2014 peak, they represent a normalization of returns relative to a significantly larger equity base of $7.72 billion.
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Comparison to Competitors
Dollar Tree Inc., ROE, long-term trends, comparison to competitors
| Dollar Tree Inc. | Costco Wholesale Corp. | Target Corp. | Walmart Inc. | |
|---|---|---|---|---|
| Jan 29, 2022 | 17.20% | 28.31% | 54.15% | 16.42% |
| Jan 30, 2021 | 18.42% | 28.51% | 30.25% | 16.69% |
| Feb 1, 2020 | 13.22% | 21.89% | 27.73% | 19.93% |
| Feb 2, 2019 | -28.19% | 24.00% | 26.00% | 9.20% |
| Feb 3, 2018 | 23.87% | 24.49% | 25.06% | 12.66% |
| Jan 28, 2017 | 16.63% | 24.86% | 24.99% | 17.54% |
| Jan 30, 2016 | 6.41% | 19.46% | 25.96% | 18.24% |
| Jan 31, 2015 | 33.57% | 22.39% | -11.69% | 20.10% |
| Feb 1, 2014 | 50.97% | 16.73% | 12.14% | 21.01% |
| Feb 2, 2013 | 37.14% | 18.82% | 18.11% | 22.27% |
| Jan 28, 2012 | 36.32% | 13.83% | 18.51% | 22.01% |
| Jan 29, 2011 | 27.23% | 12.18% | 18.85% | 23.91% |
| Jan 30, 2010 | 22.43% | 12.03% | 16.21% | 20.26% |
| Jan 31, 2009 | 18.31% | 10.83% | 16.15% | 20.53% |
| Feb 2, 2008 | 20.37% | 13.95% | 18.61% | 19.70% |
| Feb 3, 2007 | 16.44% | 12.56% | 17.83% | 18.33% |
| Jan 28, 2006 | 14.84% | 12.07% | 16.95% | 21.12% |
| Jan 29, 2005 | 15.48% | 11.97% | 24.55% | 20.79% |
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).
Comparison to Sector (Consumer Staples Distribution & Retail)
Dollar Tree Inc., ROE, long-term trends, comparison to sector (consumer staples distribution & retail)
| Dollar Tree Inc. | Consumer Staples Distribution & Retail | |
|---|---|---|
| Jan 29, 2022 | 17.20% | 22.67% |
| Jan 30, 2021 | 18.42% | 20.26% |
| Feb 1, 2020 | 13.22% | 21.15% |
| Feb 2, 2019 | -28.19% | 13.40% |
| Feb 3, 2018 | 23.87% | 15.56% |
| Jan 28, 2017 | 16.63% | 19.15% |
| Jan 30, 2016 | 6.41% | 19.33% |
| Jan 31, 2015 | 33.57% | 16.13% |
| Feb 1, 2014 | 50.97% | 19.13% |
| Feb 2, 2013 | 37.14% | 21.24% |
| Jan 28, 2012 | 36.32% | 20.44% |
| Jan 29, 2011 | 27.23% | 21.63% |
| Jan 30, 2010 | 22.43% | 18.70% |
| Jan 31, 2009 | 18.31% | 18.76% |
| Feb 2, 2008 | 20.37% | 18.92% |
| Feb 3, 2007 | 16.44% | 17.66% |
| Jan 28, 2006 | 14.84% | 19.27% |
| Jan 29, 2005 | 15.48% | 20.37% |
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).
Comparison to Industry (Consumer Staples)
Dollar Tree Inc., ROE, long-term trends, comparison to industry (consumer staples)
| Dollar Tree Inc. | Consumer Staples | |
|---|---|---|
| Jan 29, 2022 | 17.20% | 32.10% |
| Jan 30, 2021 | 18.42% | 31.40% |
| Feb 1, 2020 | 13.22% | 30.98% |
| Feb 2, 2019 | -28.19% | 22.71% |
| Feb 3, 2018 | 23.87% | 28.05% |
| Jan 28, 2017 | 16.63% | 25.14% |
| Jan 30, 2016 | 6.41% | 25.00% |
| Jan 31, 2015 | 33.57% | 23.15% |
| Feb 1, 2014 | 50.97% | 23.21% |
| Feb 2, 2013 | 37.14% | 24.09% |
| Jan 28, 2012 | 36.32% | 23.55% |
| Jan 29, 2011 | 27.23% | 23.75% |
| Jan 30, 2010 | 22.43% | 24.19% |
| Jan 31, 2009 | 18.31% | 23.20% |
| Feb 2, 2008 | 20.37% | 22.49% |
| Feb 3, 2007 | 16.44% | 18.15% |
| Jan 28, 2006 | 14.84% | 18.58% |
| Jan 29, 2005 | 15.48% | 22.40% |
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).