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).
- Gross Profit Margin
- The gross profit margin remained relatively stable throughout the observed periods, fluctuating between approximately 29.37% and 31.57%. It showed a slight downward trend from early 2018 through late 2019, reaching its lowest point around 29.37% in the second quarter of 2022, before trending upward again to 31.34% by the final quarter. Overall, the margin demonstrates modest volatility but maintains a consistent level above 29%.
- Operating Profit Margin
- Operating profit margin exhibited notable volatility, especially during 2018 and 2019. Initially, it steadily increased from 8.01% in early 2017 to a peak around 9.1% in mid-2018. However, a significant decline occurred starting in early 2019, with margins turning negative and reaching lows around -4.83% by late 2019. Subsequently, there was a recovery beginning in early 2020, with margins returning to positive territory and increasing progressively to approximately 7.94% by the last quarter of 2022. This pattern indicates a period of operational challenges followed by a substantial recovery.
- Net Profit Margin
- The net profit margin mirrors the pattern observed in operating margins. High positive values were seen through 2017 and 2018, peaking around 7.71%. This was followed by a sharp decline into negative territory from early 2019 through late 2019, with lows near -6.97%. Thereafter, a recovery phase commenced, with margins rising steadily to about 5.84% by late 2022. The data highlights a significant adverse event or period impacting net profitability during 2019, with a gradual improvement thereafter.
- Return on Equity (ROE)
- ROE demonstrated strong performance in the initial periods, ranging from 15.4% to a peak of 23.87% around early 2018. Similar to profitability margins, it sharply declined into deeply negative values from early 2019 to late 2019, reaching nearly -28.19%. From early 2020 onwards, ROE recovered steadily, ending at 19.54% in the final period. The fluctuations suggest significant impacts on shareholder returns aligned with operational difficulties and subsequent recovery.
- Return on Assets (ROA)
- ROA followed a comparable trajectory, with positive values rising from 5.4% to about 10.65% in mid-2018, then declining sharply into negative territory in early 2019, reaching lows near -11.78%. Post-2019, ROA consistently improved, reaching approximately 7.06% by late 2022. This pattern reflects challenges in asset efficiency or utilization during the downturn period, followed by improved asset performance during recovery.
- Summary of Trends and Insights
- Across all key profitability and performance metrics, the company experienced steady or improving results up to mid-2018, followed by a pronounced downturn through 2019 where operating, net margins, ROE, and ROA turned significantly negative. This suggests substantial financial stress or extraordinary events adversely affecting profitability and returns during that time. Beginning in early 2020, all indicators show a marked recovery trend, with gradual improvements back into positive territory and strengthening momentum through 2022. Gross profit margin remained comparatively stable throughout, indicating that cost of goods sold was relatively controlled even during periods of operational difficulty. The volatility in operating and net margins, as well as returns on equity and assets, points to challenges possibly related to operating expenses, asset deployment, or external market conditions impacting profitability. The recovery phase signifies effective management responses or favorable changes in the business environment facilitating return to profitability and enhanced financial performance.
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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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) | |||||||
| 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) | |||||||
| 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% | |||||||
| 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% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Target Corp. | 25.46% | 26.23% | 28.30% | 29.28% | 29.67% | 30.24% | 30.32% | 29.27% | 29.19% | 28.92% | 28.68% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Walmart Inc. | 23.68% | 23.90% | 24.23% | 24.44% | 24.41% | 24.51% | 24.55% | 24.30% | 24.24% | 24.11% | 23.94% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
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).
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.
- Net Sales Trend
- Net sales exhibit a general upward trend over the observed periods, starting from approximately 5.29 billion USD in April 2017 and rising to around 6.94 billion USD by October 2022. Periodic fluctuations are evident, with occasional dips such as between May 2020 and October 2020, but overall growth is maintained. Notably, the highest net sales figures are recorded in the later periods, particularly from January 2021 onward, indicating strengthened sales performance in recent quarters.
- Gross Profit Dynamics
- Gross profit values follow a similar pattern to net sales, increasing progressively from about 1.63 billion USD in April 2017 to over 2.07 billion USD by October 2022. There are pronounced peaks in certain quarters, such as February 2018 and January 2021, suggesting periods of improved profitability. Despite some quarter-to-quarter variability, gross profit generally reflects the expansion seen in net sales, though the growth rate appears more variable across certain intervals.
- Gross Profit Margin Stability and Variation
- Gross profit margin remains relatively stable throughout the periods, generally hovering around the 30% to 31% range. The margin fluctuates modestly, reaching a peak close to 31.6% in early 2018 and experiencing minor declines thereafter, with a few dips below 30% in late 2019 and early 2022. Despite these variations, the company maintains a consistent gross profit margin, indicating effective cost management relative to sales. The margin's slight decline in some later periods may warrant monitoring to assess impacts on profitability.
- Combined Insights
- The correlation between net sales and gross profit suggests that increases in sales volume contribute positively to overall profitability. Consistent gross profit margins imply stable pricing strategies and cost controls. However, the slight declines in margin during certain quarters could reflect changing cost structures or competitive pressures. The sustained growth in both sales and gross profit, particularly in recent years, signals operational resilience and successful revenue generation efforts.
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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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) | |||||||
| 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) | |||||||
| 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% | |||||||
| 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% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Target Corp. | 4.40% | 5.35% | 7.40% | 8.44% | 8.41% | 8.58% | 8.60% | 6.99% | 6.66% | 5.87% | 4.98% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Walmart Inc. | 3.49% | 4.10% | 4.27% | 4.57% | 4.50% | 4.54% | 4.34% | 4.06% | 4.11% | 3.96% | 3.93% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
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).
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) Trends
- The operating income figures exhibit notable fluctuations over the observed periods. Initially, operating income remained relatively stable, with values typically ranging between approximately 380,000 and 430,000 thousand US dollars. A significant decline occurred during the period ending February 2, 2019, where operating income sharply dropped to -2,147,400 thousand US dollars, indicating an operating loss. Following this loss, the operating income rebounded and showed a recovery trend, generally increasing through subsequent quarters. By the most recent period, operating income rose again to levels between 380,000 and 730,000 thousand US dollars, demonstrating improved profitability compared to the significant loss period.
- Net Sales Trends
- Net sales also displayed a pattern of growth with some variability. From the initial quarter through early 2018, net sales increased from approximately 5,287,100 thousand US dollars to peaks above 6,360,600 thousand US dollars, indicating positive sales momentum. Afterward, sales fluctuated but generally maintained a level between 5,400,000 and 6,900,000 thousand US dollars, showing some seasonal or market-driven variability. A gradual upward trend is evident in the most recent quarters, culminating in net sales around 6,936,600 thousand US dollars, which suggests a recovery and strengthening of sales performance following prior variability.
- Operating Profit Margin Dynamics
- The operating profit margin displayed considerable volatility over the periods. Initially, margins were positive and ranged from around 8.0% to slightly above 9.0%, consistent with steady operational profitability. In the quarter corresponding to the substantial operating loss mentioned, the margin plunged into negative territory, reaching approximately -4.12% and further declining to as low as -4.83% in subsequent quarters. This negative margin phase coincided with the operating loss period. Following this downturn, operating profit margins recovered to positive values, steadily increasing to near or above 7.0% in later quarters, indicating that operational efficiencies and profitability were restored after the loss period.
- Overall Financial Insights
- The data suggests a period of operational challenge marked by a substantial loss and negative profit margins occurring around early 2019. Before and after this event, the company maintained stable to improving performance in terms of operating income, net sales, and operating profit margins. The recovery phase shows growing operating income and improved margin percentages, reflecting effective management responses or improved market conditions. Net sales trends complement this, displaying a general upward trajectory with some fluctuations, reinforcing an overall picture of resilience and gradual financial stabilization.
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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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) | |||||||
| 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) | |||||||
| 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% | |||||||
| 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% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Target Corp. | 3.17% | 3.92% | 5.48% | 6.55% | 6.56% | 6.29% | 6.30% | 4.67% | 4.31% | 4.16% | 3.46% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Walmart Inc. | 1.51% | 2.38% | 2.28% | 2.41% | 1.41% | 1.79% | 2.19% | 2.43% | 3.62% | 3.33% | 2.83% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
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).
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.
- Net Income (Loss)
- The net income exhibited notable volatility across the quarters. Initially, there was a general upward trend from early 2017 through early 2018, peaking significantly in the quarter ending February 3, 2018. This was followed by fluctuations with large gains in late 2018 and early 2019, interrupted by a negative spike in the quarter ending February 2, 2019, where a substantial loss was recorded. Subsequently, the net income returned to positive territory, showing moderate increases with peaks in the first quarter of 2021 and again in mid-2022. The most recent quarters reveal a decreasing trend in net income, suggesting some volatility but generally maintaining positive values after the earlier loss.
- Net Sales
- Net sales demonstrated a relatively stable pattern with moderate growth over the analyzed periods. Sales mostly fluctuated within a narrow range between approximately 5.2 billion and 6.9 billion US dollars. There was a noticeable rise in net sales starting in early 2018, continuing with some variation up to the end of 2021 and into 2022, where net sales reached their highest values in the dataset. This steady increase indicates a general expansion in revenue generation over the multi-year span examined.
- Net Profit Margin
- The net profit margin reflected significant changes corresponding to fluctuations in net income and net sales. It peaked around early 2018 at over 7%, indicating strong profitability during this period. However, the margin sharply declined into negative levels in the quarters ending February 2, 2019 through February 1, 2020, mirroring the net loss occurrence and signaling a period of operational or financial challenges. From May 2020 onwards, the margin recovered, steadily climbing from just above 3% to nearly 6% by late 2022. This recovery trend signifies improving profitability and operational efficiency following the earlier downturn.
- Summary
- The financial data reveals a cycle of growth, disruption, and recovery. The initial steady improvement in net income and profit margin coupled with rising sales was interrupted by a pronounced decline around early 2019, manifesting as a large net loss and negative margins. Following this, the recovery phase shows strengthening profitability and stable sales growth, indicating resilience and effective management responses. Despite recent fluctuations, the overall trend towards increased net sales and improved profit margins suggests financial stabilization and positive operating performance in the most recent periods evaluated.
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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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) | |||||||
| 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) | |||||||
| 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% | |||||||
| 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% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Target Corp. | 31.29% | 39.88% | 54.37% | 54.15% | 49.13% | 42.45% | 41.32% | 30.25% | 28.70% | 28.00% | 24.80% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Walmart Inc. | 12.41% | 17.88% | 16.90% | 16.42% | 9.75% | 12.48% | 15.64% | 16.69% | 24.24% | 23.76% | 22.02% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
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).
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) Trends
- The net income figures exhibit considerable volatility across the reported periods. From 2017 through early 2018, net income increased steadily, peaking at 1,040,100 thousand USD in February 2018, indicating strong operational performance during this timeframe. Following this peak, there was a sharp decline culminating in a substantial net loss of 2,307,000 thousand USD by February 2019. After this significant downturn, net income values recovered and stabilized, fluctuating between approximately 123,000 thousand USD and 536,400 thousand USD from 2020 onward. This pattern suggests the occurrence of an extraordinary event or adjustments impacting profitability during early 2019, followed by a period of recovery and more stable earnings.
- Shareholders’ Equity Patterns
- Shareholders' equity showed a consistent upward trend from 5,609,000 thousand USD in April 2017 up to a peak of 7,943,100 thousand USD in November 2018. However, a marked decline is observed immediately afterward, with equity dropping sharply to 5,642,900 thousand USD by February 2019. Post this decline, equity resumed its growth trajectory, increasing steadily to a high of 8,396,500 thousand USD by July 2022 before a slight decrease to 8,275,300 thousand USD by October 2022. This pattern mirrors the fluctuations seen in net income, suggesting a correlated effect potentially due to write-downs, losses, or capital restructuring occurring around early 2019, followed by rebuilding of equity.
- Return on Equity (ROE) Analysis
- Return on equity closely aligns with the net income trends. In 2017 and early 2018, ROE increased from 15.4% to a peak of 23.87%, reflecting strong profitability relative to equity. This was followed by a significant downturn, with negative ROE values reaching -28.19% in February 2019, confirming the presence of adverse events severely impacting returns. ROE rebounded after this period, maintaining positive levels between 12.37% and 21.25% from mid-2020 through the end of the series in late 2022. The recovery in ROE demonstrates a return to profitability and efficient use of shareholders’ equity in subsequent periods.
- Overall Insights
- The data reveals a significant disruption in financial performance and equity in early 2019, likely attributable to extraordinary or one-time factors negatively affecting profitability and capital. Prior to this event, the company experienced steady growth in income, equity, and returns, which resumed following the recovery phase. The post-disruption periods show more moderate but consistent profitability and equity growth, indicating stabilization. These patterns underline the importance of understanding the specific causes behind the early 2019 financial shock to assess ongoing performance sustainability and risk exposure.
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 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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) | |||||||
| 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) | |||||||
| 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% | |||||||
| 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% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Target Corp. | 6.20% | 8.05% | 11.52% | 12.91% | 12.46% | 12.28% | 12.25% | 8.52% | 7.54% | 7.34% | 6.18% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Walmart Inc. | 3.62% | 5.61% | 5.28% | 5.58% | 3.28% | 4.21% | 5.18% | 5.35% | 7.87% | 7.54% | 6.45% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
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).
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 demonstrate significant variability over the reported periods. Initially, net income showed a stable and gradual increase, reaching a peak in early 2018. However, a dramatic decline occurred in the quarter ending February 2, 2019, with a substantial net loss recorded. After this loss, net income recovered and displayed fluctuating but generally positive values, with notable peaks in early 2021 and 2022. Despite these fluctuations, the overall trajectory post-loss indicates a recovery trend, though the figures remain somewhat volatile.
- Total Assets
- Total assets exhibited a relatively steady upward trend throughout the entire timeline. There was a temporary decline during early 2019, coinciding with the period of net loss, but assets quickly rebounded and continued to grow to the highest levels reported at the end of the period. This upward trend suggests ongoing investment and asset accumulation despite periods of income volatility.
- Return on Assets (ROA)
- ROA percentages closely mirror the net income trends, indicating profitability fluctuations relative to asset base. ROA increased steadily during the early periods, peaking in early 2018. This was followed by a sharp drop into negative territory during the first quarter of 2019, reflecting the notable loss period. Subsequently, ROA recovered into positive figures and stabilized between approximately 4% and 7%, demonstrating more consistent profitability relative to assets in the latter periods. This recovery in ROA suggests improved operational efficiency and asset utilization following the loss.
- Overall Analysis
- The financial data reveals a significant disruption in profitability around early 2019, with a large net loss and corresponding negative ROA, which is atypical compared to previous periods. Despite this setback, the company managed a recovery with a steady increase in total assets and a return to positive net income and ROA margins afterwards. The trends illustrate resilience and a return to profitability, although income figures continue to show some volatility. Asset growth remains a consistent positive factor throughout, supporting a foundation for ongoing operations and potential expansion.