Return on Capital (ROC)
Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.
Return on Invested Capital (ROIC)
Dollar Tree Inc., ROIC calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net operating profit after taxes (NOPAT)1 | 1,622,053) | 1,686,673) | 1,176,670) | (1,112,626) | 1,636,265) | 1,187,252) | |
| Invested capital2 | 18,201,900) | 17,693,200) | 16,987,300) | 17,010,987) | 19,846,068) | 19,165,878) | |
| Performance Ratio | |||||||
| ROIC3 | 8.91% | 9.53% | 6.93% | -6.54% | 8.24% | 6.19% | |
| Benchmarks | |||||||
| ROIC, Competitors4 | |||||||
| Costco Wholesale Corp. | 20.27% | 18.56% | 14.65% | 16.61% | 16.15% | — | |
| Target Corp. | 26.11% | 16.47% | 14.30% | 14.14% | — | — | |
| Walmart Inc. | 9.80% | 11.03% | 10.88% | 5.72% | — | — | |
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).
1 NOPAT. See details »
2 Invested capital. See details »
3 2022 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 1,622,053 ÷ 18,201,900 = 8.91%
4 Click competitor name to see calculations.
| Performance ratio | Description | The company |
|---|---|---|
| ROIC | A measure of the periodic, after tax, cash-on-cash yield earned in the business. | Dollar Tree Inc. ROIC improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Decomposition of ROIC
Dollar Tree Inc., decomposition of ROIC
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).
1 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
The primary reason for the decrease in return on invested capital (ROIC) over 2022 year is the decrease in profitability measured by operating profit margin (OPM) ratio.
Operating Profit Margin (OPM)
Dollar Tree Inc., OPM calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net operating profit after taxes (NOPAT)1 | 1,622,053) | 1,686,673) | 1,176,670) | (1,112,626) | 1,636,265) | 1,187,252) | |
| Add: Cash operating taxes2 | 411,860) | 450,561) | 353,258) | 424,099) | 664,515) | 786,228) | |
| Net operating profit before taxes (NOPBT) | 2,033,912) | 2,137,234) | 1,529,928) | (688,527) | 2,300,780) | 1,973,479) | |
| Net sales | 26,309,800) | 25,508,400) | 23,610,800) | 22,823,300) | 22,245,500) | 20,719,200) | |
| Profitability Ratio | |||||||
| OPM3 | 7.73% | 8.38% | 6.48% | -3.02% | 10.34% | 9.52% | |
| Benchmarks | |||||||
| OPM, Competitors4 | |||||||
| Costco Wholesale Corp. | 3.79% | 3.58% | 3.37% | 3.30% | 3.41% | — | |
| Target Corp. | 9.00% | 7.15% | 6.17% | 5.67% | — | — | |
| Walmart Inc. | 3.77% | 4.26% | 4.52% | 2.84% | — | — | |
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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2022 Calculation
OPM = 100 × NOPBT ÷ Net sales
= 100 × 2,033,912 ÷ 26,309,800 = 7.73%
4 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| OPM | The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. | Dollar Tree Inc. OPM improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Turnover of Capital (TO)
Dollar Tree Inc., TO calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net sales | 26,309,800) | 25,508,400) | 23,610,800) | 22,823,300) | 22,245,500) | 20,719,200) | |
| Invested capital1 | 18,201,900) | 17,693,200) | 16,987,300) | 17,010,987) | 19,846,068) | 19,165,878) | |
| Efficiency Ratio | |||||||
| TO2 | 1.45 | 1.44 | 1.39 | 1.34 | 1.12 | 1.08 | |
| Benchmarks | |||||||
| TO, Competitors3 | |||||||
| Costco Wholesale Corp. | 7.03 | 6.74 | 5.62 | 6.23 | 6.67 | — | |
| Target Corp. | 3.47 | 3.03 | 2.83 | 2.86 | — | — | |
| Walmart Inc. | 3.63 | 3.38 | 3.11 | 3.21 | — | — | |
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).
1 Invested capital. See details »
2 2022 Calculation
TO = Net sales ÷ Invested capital
= 26,309,800 ÷ 18,201,900 = 1.45
3 Click competitor name to see calculations.
| Efficiency ratio | Description | The company |
|---|---|---|
| TO | The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. | Dollar Tree Inc. TO improved from 2020 to 2021 and from 2021 to 2022. |
Effective Cash Tax Rate (CTR)
Dollar Tree Inc., CTR calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net operating profit after taxes (NOPAT)1 | 1,622,053) | 1,686,673) | 1,176,670) | (1,112,626) | 1,636,265) | 1,187,252) | |
| Add: Cash operating taxes2 | 411,860) | 450,561) | 353,258) | 424,099) | 664,515) | 786,228) | |
| Net operating profit before taxes (NOPBT) | 2,033,912) | 2,137,234) | 1,529,928) | (688,527) | 2,300,780) | 1,973,479) | |
| Tax Rate | |||||||
| CTR3 | 20.25% | 21.08% | 23.09% | — | 28.88% | 39.84% | |
| Benchmarks | |||||||
| CTR, Competitors4 | |||||||
| Costco Wholesale Corp. | 23.89% | 23.00% | 22.65% | 19.18% | 28.98% | — | |
| Target Corp. | 16.42% | 23.99% | 18.12% | 12.76% | — | — | |
| Walmart Inc. | 28.43% | 23.29% | 22.54% | 37.20% | — | — | |
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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2022 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 411,860 ÷ 2,033,912 = 20.25%
4 Click competitor name to see calculations.
| Tax rate | Description | The company |
|---|---|---|
| CTR | Effective cash tax rate on operating income. | Dollar Tree Inc. CTR decreased from 2020 to 2021 and from 2021 to 2022. |