Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Dollar Tree Inc., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05), 10-K (reporting date: 2018-02-03), 10-Q (reporting date: 2017-10-28), 10-Q (reporting date: 2017-07-29), 10-Q (reporting date: 2017-04-29), 10-K (reporting date: 2017-01-28), 10-Q (reporting date: 2016-10-29), 10-Q (reporting date: 2016-07-30), 10-Q (reporting date: 2016-04-30).
- Gross profit margin
- The gross profit margin demonstrates stability over the examined periods, maintaining a range predominantly around 29.3% to 31.5%. Beginning in early 2017, the margin consistently fluctuates slightly above 30% with minor variations. Notably, the lowest observations occur in early 2020, with margins near 29.3% to 29.5%. However, the margin recovers progressively thereafter, nearing 31.3% by the end of October 2022. This consistency indicates steady control over cost of goods sold relative to revenue.
- Operating profit margin
- The operating profit margin exhibits more pronounced volatility compared to the gross profit margin. Starting in early 2017, it averages around 8% to 9%, showing an upward trend through 2018. However, there is a significant decline in early 2019, with margins turning negative between approximately -4.1% and -4.8% through late 2019 and early 2020. Beginning mid-2020, a notable recovery occurs, with operating margins rising steadily, reaching around 7.9% by the last recorded period in late 2022. This pattern suggests operational challenges during early 2019 to early 2020, followed by a recovery phase in subsequent years.
- Net profit margin
- The net profit margin mirrors the operating margin's trends with greater extremes. From early 2017 through 2018, margins elevated from roughly 4.3% to peaks near 7.7%, signaling improving profitability at the net level. However, a sharp reversal occurs during 2019 and early 2020, with net margins falling into negative territory near -7%, indicating losses. From mid-2020 onward, the net margin improves steadily, rising back to approximately 5.8% by late 2022. This recovery underscores regained profitability after a period of adverse financial results.
- Return on equity (ROE)
- ROE shows a similar disruption pattern. It held moderate levels in early periods of around 15% to 17%, increasing sharply to near 24% in early 2018, then consistently remained strong through 2018. However, during the 2019 and early 2020 timeframe, ROE plunged dramatically into negative territory below -25%, signaling significant equity erosion. Following this trough, ROE rebounded starting mid-2020, climbing back towards 19.5% by late 2022. This trajectory indicates temporary setbacks severely impacting shareholder returns, followed by a gradual restoration of equity profitability.
- Return on assets (ROA)
- The ROA trend aligns with the ROE and profit margins, beginning with moderate performance around 5.4% to 6.3% early on, peaking near 10.6% by 2018. The metric then collapses into negative values, reaching lows around -8% to -11.8% during 2019-early 2020. A steady recovery phase unfolds thereafter, with ROA rising back to above 7% by the last quarter of 2022. This reflects challenges in asset utilization and profitability during the troubled periods and subsequent improvement.
- Summary of trends
- The analyzed profitability and return metrics reveal a consistent pattern of initial stability and growth through 2018, followed by a significant downturn in 2019 and early 2020 characterized by negative margins and returns. This period signifies notable operational and financial distress. After this period, a recovery phase is evident with gradual improvements in margins and returns, stabilizing near or above previous positive levels by late 2022. The gross margin remains comparatively stable throughout, indicating that cost of goods sold was less affected than operating and net income components. Overall, the company experienced a cycle of growth, challenge, and recovery during the course of the observed quarterly periods.
Return on Sales
Return on Investment
Gross Profit Margin
Dollar Tree Inc., gross profit margin calculation (quarterly data)
| Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | Feb 2, 2019 | Nov 3, 2018 | Aug 4, 2018 | May 5, 2018 | Feb 3, 2018 | Oct 28, 2017 | Jul 29, 2017 | Apr 29, 2017 | Jan 28, 2017 | Oct 29, 2016 | Jul 30, 2016 | Apr 30, 2016 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||||
| Gross profit | 2,071,500) | 2,124,400) | 2,340,500) | 2,137,100) | 1,763,700) | 1,861,000) | 1,964,100) | 2,152,200) | 1,924,100) | 1,916,200) | 1,794,900) | 1,960,500) | 1,704,500) | 1,648,500) | 1,727,200) | 1,912,100) | 1,671,900) | 1,663,900) | 1,699,600) | 2,101,000) | 1,666,000) | 1,627,800) | 1,627,100) | 1,807,200) | 1,520,500) | 1,512,400) | 1,554,600) | ||||||||
| Net sales | 6,936,600) | 6,765,300) | 6,900,100) | 7,077,400) | 6,415,400) | 6,340,200) | 6,476,800) | 6,767,300) | 6,176,700) | 6,277,600) | 6,286,800) | 6,315,300) | 5,746,200) | 5,740,600) | 5,808,700) | 6,205,200) | 5,538,800) | 5,525,600) | 5,553,700) | 6,360,600) | 5,316,600) | 5,281,200) | 5,287,100) | 5,635,500) | 5,001,600) | 4,996,300) | 5,085,800) | ||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||||||||
| Gross profit margin1 | 31.34% | 30.80% | 30.31% | 29.37% | 29.77% | 30.67% | 30.96% | 30.53% | 30.31% | 29.95% | 29.51% | 29.82% | 29.75% | 29.88% | 30.22% | 30.44% | 31.06% | 31.33% | 31.51% | 31.57% | 31.26% | 31.04% | 30.91% | 30.86% | — | — | — | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||||||||||||||
| Costco Wholesale Corp. | 10.44% | 10.41% | 10.39% | 10.48% | 10.71% | 10.94% | 11.02% | 11.13% | 11.23% | 11.30% | 11.32% | 11.20% | 11.15% | 11.02% | 11.09% | 11.02% | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Target Corp. | 25.46% | 26.23% | 28.30% | 29.28% | 29.67% | 30.24% | 30.32% | 29.27% | 29.19% | 28.92% | 28.68% | 29.76% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Walmart Inc. | 23.68% | 23.90% | 24.23% | 24.44% | 24.41% | 24.51% | 24.55% | 24.30% | 24.24% | 24.11% | 23.94% | 24.10% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05), 10-K (reporting date: 2018-02-03), 10-Q (reporting date: 2017-10-28), 10-Q (reporting date: 2017-07-29), 10-Q (reporting date: 2017-04-29), 10-K (reporting date: 2017-01-28), 10-Q (reporting date: 2016-10-29), 10-Q (reporting date: 2016-07-30), 10-Q (reporting date: 2016-04-30).
1 Q3 2023 Calculation
Gross profit margin = 100
× (Gross profitQ3 2023
+ Gross profitQ2 2023
+ Gross profitQ1 2023
+ Gross profitQ4 2022)
÷ (Net salesQ3 2023
+ Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022)
= 100 × (2,071,500 + 2,124,400 + 2,340,500 + 2,137,100)
÷ (6,936,600 + 6,765,300 + 6,900,100 + 7,077,400)
= 31.34%
2 Click competitor name to see calculations.
- Gross Profit
- The gross profit values show a fluctuating but generally upward trend over the analyzed periods. Initial values in 2016 hovered around 1.5 to 1.8 billion US dollars, with noticeable increases starting in early 2017. Peaks are observed in early 2018 and again in early 2021, reaching levels above 2.1 billion. Although some declines occur intermittently, the overall trajectory suggests growth, particularly evident from 2020 onward, culminating near 2.3 billion in mid-2022.
- Net Sales
- Net sales figures follow a similar pattern to gross profit, with values ranging roughly between 5.0 billion to over 7.0 billion US dollars. Net sales have demonstrated periodic fluctuations but an overall increase is present, especially from 2017 through mid-2022. The data points correspond with peaks seen in gross profit, notably around early 2018 and 2021. The maximum net sales are observed in the first quarter of 2022, around 7.1 billion, indicating strong revenue growth during this period.
- Gross Profit Margin
- Gross profit margin data starts from early 2017 with percentages slightly above 30%. The margin remains relatively stable throughout the periods, oscillating between approximately 29.3% and 31.5%. There is a tendency for minor rises and falls, but no dramatic changes or trends. Notably, the highest margins above 31% occur sporadically in 2017-2018 and again in late 2022. The margin dips slightly below 30% in some mid periods but reverts to around 30-31% by the latest data points.
- Insights
- The financial data indicates a positive trend in both net sales and gross profit over the years, with recurrent periods of growth and some volatility. The consistent gross profit margin points to stable cost management relative to sales throughout the timeline. The correlation between gross profit peaks and net sales suggests efficient operational scaling during periods of increased revenue. Overall, the financials reflect progressive expansion with maintained profitability ratios.
Operating Profit Margin
Dollar Tree Inc., operating profit margin calculation (quarterly data)
| Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | Feb 2, 2019 | Nov 3, 2018 | Aug 4, 2018 | May 5, 2018 | Feb 3, 2018 | Oct 28, 2017 | Jul 29, 2017 | Apr 29, 2017 | Jan 28, 2017 | Oct 29, 2016 | Jul 30, 2016 | Apr 30, 2016 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||||
| Operating income (loss) | 381,300) | 505,400) | 731,500) | 578,800) | 310,500) | 402,200) | 519,900) | 681,600) | 465,500) | 374,900) | 365,900) | 249,400) | 358,400) | 268,900) | 385,500) | (2,147,400) | 387,800) | 382,500) | 437,600) | 765,600) | 425,200) | 419,500) | 388,800) | 586,500) | 342,400) | 357,200) | 418,700) | ||||||||
| Net sales | 6,936,600) | 6,765,300) | 6,900,100) | 7,077,400) | 6,415,400) | 6,340,200) | 6,476,800) | 6,767,300) | 6,176,700) | 6,277,600) | 6,286,800) | 6,315,300) | 5,746,200) | 5,740,600) | 5,808,700) | 6,205,200) | 5,538,800) | 5,525,600) | 5,553,700) | 6,360,600) | 5,316,600) | 5,281,200) | 5,287,100) | 5,635,500) | 5,001,600) | 4,996,300) | 5,085,800) | ||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||||||||
| Operating profit margin1 | 7.94% | 7.83% | 7.57% | 6.88% | 7.36% | 8.03% | 7.95% | 7.40% | 5.81% | 5.48% | 5.16% | 5.35% | -4.83% | -4.74% | -4.30% | -4.12% | 8.59% | 8.84% | 9.10% | 8.99% | 8.46% | 8.19% | 8.01% | 8.23% | — | — | — | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||||||||||||||
| Costco Wholesale Corp. | 3.39% | 3.45% | 3.46% | 3.50% | 3.55% | 3.61% | 3.50% | 3.49% | 3.48% | 3.36% | 3.43% | 3.33% | 3.16% | 3.17% | 3.21% | 3.17% | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Target Corp. | 4.40% | 5.35% | 7.40% | 8.44% | 8.41% | 8.58% | 8.60% | 6.99% | 6.66% | 5.87% | 4.98% | 5.96% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Walmart Inc. | 3.49% | 4.10% | 4.27% | 4.57% | 4.50% | 4.54% | 4.34% | 4.06% | 4.11% | 3.96% | 3.93% | 3.96% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05), 10-K (reporting date: 2018-02-03), 10-Q (reporting date: 2017-10-28), 10-Q (reporting date: 2017-07-29), 10-Q (reporting date: 2017-04-29), 10-K (reporting date: 2017-01-28), 10-Q (reporting date: 2016-10-29), 10-Q (reporting date: 2016-07-30), 10-Q (reporting date: 2016-04-30).
1 Q3 2023 Calculation
Operating profit margin = 100
× (Operating income (loss)Q3 2023
+ Operating income (loss)Q2 2023
+ Operating income (loss)Q1 2023
+ Operating income (loss)Q4 2022)
÷ (Net salesQ3 2023
+ Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022)
= 100 × (381,300 + 505,400 + 731,500 + 578,800)
÷ (6,936,600 + 6,765,300 + 6,900,100 + 7,077,400)
= 7.94%
2 Click competitor name to see calculations.
- Operating Income (Loss)
- The operating income figures exhibit significant fluctuations over the time periods presented. Initially, from April 2016 to January 2017, operating income showed a general increase, peaking at 586,500 thousand USD in January 2017. This was followed by a stabilization period through October 2017, with values ranging between approximately 388,800 and 425,200 thousand USD. A notable spike occurs in February 2018, reaching 765,600 thousand USD, after which operating income declines but remains positive until November 2018. A sharp reversal to a negative operating income of -2,147,400 thousand USD is observed in February 2019, representing a substantial loss. Subsequent quarters restore positive operating income, though at lower levels relative to previous peaks, with some volatility. From May 2020 onward, operating income recovers and trends upward, reaching 731,500 thousand USD in April 2022, followed by a decline toward the end of 2022.
- Net Sales
- Net sales show an overall upward trajectory during the periods measured. Starting from approximately 5,085,800 thousand USD in April 2016, sales fluctuate slightly but maintain a growth trend, reaching over 6,000,000 thousand USD by early 2018. A brief dip in sales is observed following the peak in February 2018 but remains relatively stable in the 5,500,000 to 6,200,000 thousand USD range until early 2020. From May 2020 onwards, net sales increase markedly, surpassing previous highs and reaching a peak of 7,077,400 thousand USD in January 2022. This reflects substantial growth especially in the periods following early 2020, with some minor declines noted late in 2022.
- Operating Profit Margin
- Data on operating profit margin begins in January 2017, where values range between 8.01% and 9.10%, indicating healthy profitability during that period. In February 2019, there is a dramatic decrease in margin to -4.12%, correlating with the operating loss during the same period. Margins remain negative through much of 2019, bottoming out near -4.83%. Recovery begins in early 2020, with margins turning positive again and demonstrating a generally increasing trend. Margins rise from around 5.16% in mid-2020 to approximately 7.94% by late 2022, indicating progressive improvement in operational efficiency and profitability over time despite some variability.
- Summary of Trends
- The financial data indicates that the company experienced periods of strong operational performance and profitability, interspersed with notable volatility including a significant operating loss in early 2019. Despite temporary setbacks, net sales generally trended upward across the timeframe, supporting recovery and continued profitability in subsequent quarters. Operating profit margins, while temporarily depressed into negative territory, show a consistent recovery trend from 2020 onward, suggesting enhanced cost management or revenue quality improvements. The period after early 2020 is marked by notable growth and margin expansion, signaling improved financial health in recent quarters.
Net Profit Margin
Dollar Tree Inc., net profit margin calculation (quarterly data)
| Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | Feb 2, 2019 | Nov 3, 2018 | Aug 4, 2018 | May 5, 2018 | Feb 3, 2018 | Oct 28, 2017 | Jul 29, 2017 | Apr 29, 2017 | Jan 28, 2017 | Oct 29, 2016 | Jul 30, 2016 | Apr 30, 2016 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||||
| Net income (loss) | 266,900) | 359,900) | 536,400) | 454,200) | 216,800) | 282,400) | 374,500) | 502,800) | 330,000) | 261,500) | 247,600) | 123,000) | 255,800) | 180,300) | 267,900) | (2,307,000) | 281,800) | 273,900) | 160,500) | 1,040,100) | 239,900) | 233,800) | 200,500) | 321,700) | 171,600) | 170,200) | 232,700) | ||||||||
| Net sales | 6,936,600) | 6,765,300) | 6,900,100) | 7,077,400) | 6,415,400) | 6,340,200) | 6,476,800) | 6,767,300) | 6,176,700) | 6,277,600) | 6,286,800) | 6,315,300) | 5,746,200) | 5,740,600) | 5,808,700) | 6,205,200) | 5,538,800) | 5,525,600) | 5,553,700) | 6,360,600) | 5,316,600) | 5,281,200) | 5,287,100) | 5,635,500) | 5,001,600) | 4,996,300) | 5,085,800) | ||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||||||||
| Net profit margin1 | 5.84% | 5.77% | 5.57% | 5.05% | 5.29% | 5.78% | 5.72% | 5.26% | 3.84% | 3.61% | 3.35% | 3.50% | -6.82% | -6.77% | -6.43% | -6.97% | 7.64% | 7.53% | 7.44% | 7.71% | 4.63% | 4.37% | 4.13% | 4.33% | — | — | — | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||||||||||||||
| Costco Wholesale Corp. | 2.60% | 2.63% | 2.59% | 2.62% | 2.65% | 2.67% | 2.59% | 2.61% | 2.58% | 2.48% | 2.55% | 2.45% | 2.36% | 2.44% | 2.47% | 2.45% | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Target Corp. | 3.17% | 3.92% | 5.48% | 6.55% | 6.56% | 6.29% | 6.30% | 4.67% | 4.31% | 4.16% | 3.46% | 4.20% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Walmart Inc. | 1.51% | 2.38% | 2.28% | 2.41% | 1.41% | 1.79% | 2.19% | 2.43% | 3.62% | 3.33% | 2.83% | 2.86% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05), 10-K (reporting date: 2018-02-03), 10-Q (reporting date: 2017-10-28), 10-Q (reporting date: 2017-07-29), 10-Q (reporting date: 2017-04-29), 10-K (reporting date: 2017-01-28), 10-Q (reporting date: 2016-10-29), 10-Q (reporting date: 2016-07-30), 10-Q (reporting date: 2016-04-30).
1 Q3 2023 Calculation
Net profit margin = 100
× (Net income (loss)Q3 2023
+ Net income (loss)Q2 2023
+ Net income (loss)Q1 2023
+ Net income (loss)Q4 2022)
÷ (Net salesQ3 2023
+ Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022)
= 100 × (266,900 + 359,900 + 536,400 + 454,200)
÷ (6,936,600 + 6,765,300 + 6,900,100 + 7,077,400)
= 5.84%
2 Click competitor name to see calculations.
The quarterly financial data reveals several key trends in the company's profitability, revenue generation, and profit margins over the analyzed periods.
- Net Income (Loss)
- The net income exhibits notable fluctuations across the quarters. Initially, it shows moderate positive values ranging roughly between 170,200 and 321,700 thousand US dollars. A pronounced spike is observed in the quarter ending February 3, 2018, where net income peaks sharply at 1,040,100 thousand US dollars. Following this peak, the net income returns to the previous moderate levels but then experiences a significant downturn with a substantial loss of -2,307,000 thousand US dollars in the quarter ending February 2, 2019. Thereafter, net income recovers gradually, fluctuating between 180,300 and 330,000 thousand US dollars for several quarters before increasing steadily in more recent quarters, reaching values around 500,000 thousand US dollars by early 2021, and stabilizing somewhat above 250,000 thousand US dollars towards the end of 2022.
- Net Sales
- Net sales maintain a relatively stable trajectory with incremental growth over the period. Starting from approximately 5,085,800 thousand US dollars, sales dip slightly in certain quarters but generally trend upward, reaching a peak of about 7,077,400 thousand US dollars by the first quarter of 2022. This increase in net sales indicates a positive revenue growth trend despite some short-term variability.
- Net Profit Margin
- The net profit margin was unavailable for the initial periods but is recorded beginning with the quarter ending January 28, 2017. Margins start at around 4.33% and show a general upward trend with some volatility. The peak net profit margins coincide with the quarters registering high net incomes, reaching as high as 7.71%. A severe decline is seen during the quarter ending February 2, 2019, where the margin drops sharply to negative territory (around -6.97%), reflecting the net loss position. Subsequently, the margin recovers steadily, stabilizing between approximately 3.5% to nearly 6% over the last several quarters, indicating improving profitability and operational efficiency.
Overall, the data points to a company experiencing cyclical variations in profitability and earnings impacted by extraordinary losses. Nonetheless, net sales show consistent growth, supporting a recovery in net income and profit margins in the latter part of the analyzed timeframe.
Return on Equity (ROE)
Dollar Tree Inc., ROE calculation (quarterly data)
| Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | Feb 2, 2019 | Nov 3, 2018 | Aug 4, 2018 | May 5, 2018 | Feb 3, 2018 | Oct 28, 2017 | Jul 29, 2017 | Apr 29, 2017 | Jan 28, 2017 | Oct 29, 2016 | Jul 30, 2016 | Apr 30, 2016 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||||
| Net income (loss) | 266,900) | 359,900) | 536,400) | 454,200) | 216,800) | 282,400) | 374,500) | 502,800) | 330,000) | 261,500) | 247,600) | 123,000) | 255,800) | 180,300) | 267,900) | (2,307,000) | 281,800) | 273,900) | 160,500) | 1,040,100) | 239,900) | 233,800) | 200,500) | 321,700) | 171,600) | 170,200) | 232,700) | ||||||||
| Shareholders’ equity | 8,275,300) | 8,396,500) | 8,241,500) | 7,718,500) | 7,244,400) | 7,011,700) | 7,411,300) | 7,285,300) | 6,961,100) | 6,813,600) | 6,520,600) | 6,254,800) | 6,121,300) | 5,865,700) | 5,755,900) | 5,642,900) | 7,943,100) | 7,647,500) | 7,355,700) | 7,182,300) | 6,116,500) | 5,860,200) | 5,609,000) | 5,389,500) | 5,047,700) | 4,856,900) | 4,669,600) | ||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||||||||
| ROE1 | 19.54% | 18.67% | 18.08% | 17.20% | 19.00% | 21.25% | 19.82% | 18.42% | 13.82% | 13.03% | 12.37% | 13.22% | -26.19% | -26.89% | -25.77% | -28.19% | 22.11% | 22.42% | 22.76% | 23.87% | 16.28% | 15.83% | 15.40% | 16.63% | — | — | — | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||||||||||||||
| Costco Wholesale Corp. | 25.46% | 26.55% | 27.40% | 28.31% | 28.28% | 28.39% | 27.97% | 28.51% | 28.67% | 27.75% | 29.10% | 21.89% | 22.08% | 22.74% | 23.55% | 24.00% | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Target Corp. | 31.29% | 39.88% | 54.37% | 54.15% | 49.13% | 42.45% | 41.32% | 30.25% | 28.70% | 28.00% | 24.80% | 27.73% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Walmart Inc. | 12.41% | 17.88% | 16.90% | 16.42% | 9.75% | 12.48% | 15.64% | 16.69% | 24.24% | 23.76% | 22.02% | 19.93% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05), 10-K (reporting date: 2018-02-03), 10-Q (reporting date: 2017-10-28), 10-Q (reporting date: 2017-07-29), 10-Q (reporting date: 2017-04-29), 10-K (reporting date: 2017-01-28), 10-Q (reporting date: 2016-10-29), 10-Q (reporting date: 2016-07-30), 10-Q (reporting date: 2016-04-30).
1 Q3 2023 Calculation
ROE = 100
× (Net income (loss)Q3 2023
+ Net income (loss)Q2 2023
+ Net income (loss)Q1 2023
+ Net income (loss)Q4 2022)
÷ Shareholders’ equity
= 100 × (266,900 + 359,900 + 536,400 + 454,200)
÷ 8,275,300 = 19.54%
2 Click competitor name to see calculations.
- Net Income (Loss)
- The net income displays significant fluctuations over the reported periods. Initial quarters show positive earnings generally ranging from approximately 170,000 to 320,000 thousand US dollars. There is a pronounced spike in the quarter ending February 3, 2018, reaching a peak of around 1,040,100 thousand US dollars. Subsequently, the net income values oscillate, including a notable sharp loss of about -2,307,000 thousand US dollars in the quarter ending February 2, 2019. Following this loss, the net income recovers and stabilizes mostly in a positive range, with values between 180,000 and 536,400 thousand US dollars. Overall, the data reflects periods of strong profit as well as significant volatility and a substantial loss event.
- Shareholders’ Equity
- The shareholders’ equity trend reveals steady growth from the start of the period through to early 2019, rising from approximately 4,669,600 to over 7,943,100 thousand US dollars. Thereafter, a decrease is observable in the quarter ending February 2, 2019, dropping to about 5,642,900 thousand US dollars, followed by a gradual recovery and consistent growth extending to the last period, where the equity reaches around 8,275,300 thousand US dollars. The data suggests an overall expansion in equity with a mid-period downturn, likely related to the net loss recorded during the same time frame.
- Return on Equity (ROE)
- Return on equity values are missing for the earliest periods but begin with strong positive percentages above 15%, peaking near 23.87% in early 2018. The quarters following this peak include a marked decline, with ROE turning negative and falling below -28% around early 2019, reflecting the large net loss during this time. Post this downturn, ROE recovers to positive figures, generally ranging between 12% and just under 22%, indicating improved profitability relative to equity over the subsequent quarters. The ROE trend correlates closely with fluctuations in net income and changes in shareholders’ equity.
- Overall Insights
- The financial performance depicts a company experiencing cyclical profitability with occasional extreme volatility, particularly evident around early 2019. The substantial loss and decline in equity during this phase suggest a significant event or one-time charge impacting financial results. Despite this setback, both net income and shareholders’ equity recover and exhibit stable growth trends, while ROE stabilizes at moderate to strong levels, indicating resumed efficient capital use. The data suggests resilience and an ability to regain financial footing following periods of adverse results.
Return on Assets (ROA)
Dollar Tree Inc., ROA calculation (quarterly data)
| Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | Feb 2, 2019 | Nov 3, 2018 | Aug 4, 2018 | May 5, 2018 | Feb 3, 2018 | Oct 28, 2017 | Jul 29, 2017 | Apr 29, 2017 | Jan 28, 2017 | Oct 29, 2016 | Jul 30, 2016 | Apr 30, 2016 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||||
| Net income (loss) | 266,900) | 359,900) | 536,400) | 454,200) | 216,800) | 282,400) | 374,500) | 502,800) | 330,000) | 261,500) | 247,600) | 123,000) | 255,800) | 180,300) | 267,900) | (2,307,000) | 281,800) | 273,900) | 160,500) | 1,040,100) | 239,900) | 233,800) | 200,500) | 321,700) | 171,600) | 170,200) | 232,700) | ||||||||
| Total assets | 22,909,500) | 22,676,300) | 22,372,300) | 21,721,800) | 21,390,000) | 20,445,200) | 21,050,700) | 20,696,000) | 20,652,200) | 20,671,000) | 20,471,800) | 19,574,600) | 19,742,100) | 19,493,800) | 19,354,300) | 13,501,200) | 16,649,300) | 16,103,600) | 15,827,100) | 16,332,800) | 15,730,200) | 15,532,300) | 15,994,700) | 15,701,600) | 16,195,000) | 16,329,400) | 16,060,900) | ||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||||||||
| ROA1 | 7.06% | 6.91% | 6.66% | 6.11% | 6.44% | 7.29% | 6.98% | 6.48% | 4.66% | 4.30% | 3.94% | 4.22% | -8.12% | -8.09% | -7.66% | -11.78% | 10.55% | 10.65% | 10.58% | 10.50% | 6.33% | 5.97% | 5.40% | 5.71% | — | — | — | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||||||||||||||
| Costco Wholesale Corp. | 8.99% | 9.05% | 8.91% | 9.11% | 8.84% | 8.74% | 8.05% | 8.45% | 8.25% | 7.91% | 7.18% | 7.20% | 7.17% | 7.74% | 7.26% | 8.06% | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Target Corp. | 6.20% | 8.05% | 11.52% | 12.91% | 12.46% | 12.28% | 12.25% | 8.52% | 7.54% | 7.34% | 6.18% | 7.67% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Walmart Inc. | 3.62% | 5.61% | 5.28% | 5.58% | 3.28% | 4.21% | 5.18% | 5.35% | 7.87% | 7.54% | 6.45% | 6.29% | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-K (reporting date: 2022-01-29), 10-Q (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-K (reporting date: 2021-01-30), 10-Q (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-K (reporting date: 2020-02-01), 10-Q (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-K (reporting date: 2019-02-02), 10-Q (reporting date: 2018-11-03), 10-Q (reporting date: 2018-08-04), 10-Q (reporting date: 2018-05-05), 10-K (reporting date: 2018-02-03), 10-Q (reporting date: 2017-10-28), 10-Q (reporting date: 2017-07-29), 10-Q (reporting date: 2017-04-29), 10-K (reporting date: 2017-01-28), 10-Q (reporting date: 2016-10-29), 10-Q (reporting date: 2016-07-30), 10-Q (reporting date: 2016-04-30).
1 Q3 2023 Calculation
ROA = 100
× (Net income (loss)Q3 2023
+ Net income (loss)Q2 2023
+ Net income (loss)Q1 2023
+ Net income (loss)Q4 2022)
÷ Total assets
= 100 × (266,900 + 359,900 + 536,400 + 454,200)
÷ 22,909,500 = 7.06%
2 Click competitor name to see calculations.
- Net Income (Loss)
- The net income figures exhibit a degree of volatility across the periods presented. Starting from a high point in early 2017 with notable peaks such as 1,040,100 thousand US dollars in early 2018, the data shows recurring strong quarters with occasional declines. A significant loss is recorded in early 2019, amounting to -2,307,000 thousand US dollars, indicating a major negative event or adjustment during that quarter. Post this drop, net income generally recovers and stabilizes, with fluctuating amounts mostly ranging between 200,000 and 500,000 thousand US dollars. The highest positive income after the loss appears in early 2021 and 2022 quarters, suggesting recovery and growth.
- Total Assets
- Total assets show a general upward trend across the entire timeline. Initial values cluster around 16 billion US dollars, with some slight decreases and rebounds. From early 2019 onward, a steady increase is observed, surpassing 22 billion US dollars by the last reported period. This indicates asset growth and accumulation over time despite some interim fluctuations, reflecting potential investments, acquisitions, or organic growth in asset base.
- Return on Assets (ROA)
- The return on assets percentage is not available for the initial periods but begins reporting from early 2017. Initially, the ROA ranges around mid-single digits, with notable peaks around 10.5% in early and mid-2018, reflecting highly efficient asset utilization during those quarters. However, there is a sharp negative turn in early 2019 with values around -11.78%, coinciding with the significant net loss in the same period. Subsequent quarters see a recovery in ROA, gradually increasing from negative or near-zero figures to a more consistent positive range between 4.2% and 7.0%. This progression suggests improved profitability relative to assets following the downturn observed in early 2019.
- Overall Trends and Insights
- The data illustrates a company experiencing periods of significant financial stress, notably around early 2019, followed by a recovery phase. Net income and ROA fluctuations correlate strongly, indicating that profitability challenges impacted asset returns during downturns. Meanwhile, total assets generally expand, indicating growth or increased investment despite earnings volatility. The stabilization of net income and ROA in later periods suggests operational improvements or successful strategic initiatives. This pattern of recovery post major loss reflects resilience and potential strengthening of financial health over the analyzed timeframe.