Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Dollar Tree Inc., profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Dollar Tree Inc. gross profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Dollar Tree Inc. operating profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Dollar Tree Inc. net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Dollar Tree Inc. ROE improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Dollar Tree Inc. ROA improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Gross Profit Margin
Dollar Tree Inc., gross profit margin 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) | |||||||
| Gross profit | 7,725,900) | 7,787,400) | 7,040,700) | 6,947,500) | 7,021,900) | 6,394,700) | |
| Net sales | 26,309,800) | 25,508,400) | 23,610,800) | 22,823,300) | 22,245,500) | 20,719,200) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 29.37% | 30.53% | 29.82% | 30.44% | 31.57% | 30.86% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Costco Wholesale Corp. | 10.48% | 11.13% | 11.20% | 11.02% | 11.04% | — | |
| Target Corp. | 28.34% | 28.38% | 28.87% | 28.39% | — | — | |
| Walmart Inc. | 24.44% | 24.30% | 24.10% | 24.50% | — | — | |
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 2022 Calculation
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 7,725,900 ÷ 26,309,800 = 29.37%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Dollar Tree Inc. gross profit margin ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Operating Profit Margin
Dollar Tree Inc., operating profit margin 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) | |||||||
| Operating income (loss) | 1,811,400) | 1,887,900) | 1,262,200) | (939,500) | 1,999,100) | 1,704,800) | |
| Net sales | 26,309,800) | 25,508,400) | 23,610,800) | 22,823,300) | 22,245,500) | 20,719,200) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 6.88% | 7.40% | 5.35% | -4.12% | 8.99% | 8.23% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Costco Wholesale Corp. | 3.50% | 3.49% | 3.33% | 3.17% | 3.24% | — | |
| Target Corp. | 8.55% | 7.08% | 6.04% | 5.52% | — | — | |
| Walmart Inc. | 4.57% | 4.06% | 3.96% | 4.30% | — | — | |
| Operating Profit Margin, Sector | |||||||
| Consumer Staples Distribution & Retail | 4.77% | 4.26% | 4.03% | 4.20% | — | — | |
| Operating Profit Margin, Industry | |||||||
| Consumer Staples | 8.47% | 8.40% | 8.12% | 7.40% | — | — | |
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).
1 2022 Calculation
Operating profit margin = 100 × Operating income (loss) ÷ Net sales
= 100 × 1,811,400 ÷ 26,309,800 = 6.88%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Dollar Tree Inc. operating profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Net Profit Margin
Dollar Tree Inc., net profit margin 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 income (loss) | 1,327,900) | 1,341,900) | 827,000) | (1,590,800) | 1,714,300) | 896,200) | |
| Net sales | 26,309,800) | 25,508,400) | 23,610,800) | 22,823,300) | 22,245,500) | 20,719,200) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 5.05% | 5.26% | 3.50% | -6.97% | 7.71% | 4.33% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Costco Wholesale Corp. | 2.62% | 2.61% | 2.45% | 2.45% | 2.26% | — | |
| Target Corp. | 6.64% | 4.73% | 4.25% | 3.95% | — | — | |
| Walmart Inc. | 2.41% | 2.43% | 2.86% | 1.31% | — | — | |
| Net Profit Margin, Sector | |||||||
| Consumer Staples Distribution & Retail | 2.96% | 2.73% | 2.92% | 1.81% | — | — | |
| Net Profit Margin, Industry | |||||||
| Consumer Staples | 5.87% | 5.64% | 5.88% | 3.76% | — | — | |
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 2022 Calculation
Net profit margin = 100 × Net income (loss) ÷ Net sales
= 100 × 1,327,900 ÷ 26,309,800 = 5.05%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Dollar Tree Inc. net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Return on Equity (ROE)
Dollar Tree Inc., ROE 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 income (loss) | 1,327,900) | 1,341,900) | 827,000) | (1,590,800) | 1,714,300) | 896,200) | |
| Shareholders’ equity | 7,718,500) | 7,285,300) | 6,254,800) | 5,642,900) | 7,182,300) | 5,389,500) | |
| Profitability Ratio | |||||||
| ROE1 | 17.20% | 18.42% | 13.22% | -28.19% | 23.87% | 16.63% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Costco Wholesale Corp. | 28.31% | 28.51% | 21.89% | 24.00% | 24.49% | — | |
| Target Corp. | 54.15% | 30.25% | 27.73% | 26.00% | — | — | |
| Walmart Inc. | 16.42% | 16.69% | 19.93% | 9.20% | — | — | |
| ROE, Sector | |||||||
| Consumer Staples Distribution & Retail | 22.67% | 20.26% | 21.15% | 13.40% | — | — | |
| ROE, Industry | |||||||
| Consumer Staples | 29.95% | 27.27% | 27.08% | 16.85% | — | — | |
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 2022 Calculation
ROE = 100 × Net income (loss) ÷ Shareholders’ equity
= 100 × 1,327,900 ÷ 7,718,500 = 17.20%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Dollar Tree Inc. ROE improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Return on Assets (ROA)
Dollar Tree Inc., ROA 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 income (loss) | 1,327,900) | 1,341,900) | 827,000) | (1,590,800) | 1,714,300) | 896,200) | |
| Total assets | 21,721,800) | 20,696,000) | 19,574,600) | 13,501,200) | 16,332,800) | 15,701,600) | |
| Profitability Ratio | |||||||
| ROA1 | 6.11% | 6.48% | 4.22% | -11.78% | 10.50% | 5.71% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Costco Wholesale Corp. | 9.11% | 8.45% | 7.20% | 8.06% | 7.68% | — | |
| Target Corp. | 12.91% | 8.52% | 7.67% | 7.11% | — | — | |
| Walmart Inc. | 5.58% | 5.35% | 6.29% | 3.04% | — | — | |
| ROA, Sector | |||||||
| Consumer Staples Distribution & Retail | 7.29% | 6.30% | 6.62% | 4.34% | — | — | |
| ROA, Industry | |||||||
| Consumer Staples | 8.81% | 7.91% | 7.73% | 5.14% | — | — | |
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 2022 Calculation
ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 1,327,900 ÷ 21,721,800 = 6.11%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Dollar Tree Inc. ROA improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |