Analysis of Reportable Segments
Dollar Tree Inc. operates in 2 segments: Dollar Tree and Family Dollar.
Paying user area
Try for free
Dollar Tree Inc. pages available for free this week:
- Income Statement
- Analysis of Liquidity Ratios
- Common Stock Valuation Ratios
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Net Profit Margin since 2005
- Operating Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Total Asset Turnover since 2005
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Dollar Tree Inc. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Segment Profit Margin
Dollar Tree Inc., profit margin by reportable segment
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | |
|---|---|---|---|---|---|---|
| Dollar Tree | ||||||
| Family Dollar |
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).
The segment profit margin data for the periods between January 2017 and January 2022 reveals distinct trends for the two reportable segments.
- Dollar Tree Segment
- The profit margin exhibits a generally declining trend over the six-year period. Starting at 12.87% in January 2017, there is a moderate increase to 14.05% by February 2019. However, this is followed by a consistent decline, reaching a low of 11.54% by January 2022. This downward shift over the last three reporting periods suggests increasing cost pressures or competitive challenges affecting profitability in this segment.
- Family Dollar Segment
- The profit margin shows significant volatility across the years. It begins at a low 3.78% in January 2017 and initially improves to 4.67% in February 2018. However, a sharp deterioration occurs in February 2019, with a substantial negative profit margin of -20.88%, indicative of considerable losses during that period. Following this downturn, the margin recovers gradually to -0.73% in February 2020, then improves further to positive territory at 5.35% in January 2021. By January 2022, the margin slightly dips to 4.38%, suggesting intermittent challenges but an overall recovery trend after the major loss in 2019.
In summary, the Dollar Tree segment maintains a relatively stable but declining profitability trend, indicating gradual margin compression. In contrast, the Family Dollar segment experienced extreme profitability swings, marked by a severe loss in 2019 but followed by partial recovery, suggesting operational or market challenges that were partially addressed in subsequent years.
Segment Profit Margin: Dollar Tree
Dollar Tree Inc.; Dollar Tree; segment profit margin calculation
| 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) | ||||||
| Net sales | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
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
Segment profit margin = 100 × Operating income (loss) ÷ Net sales
= 100 × ÷ =
- Net Sales
- Net sales exhibited a consistent upward trend over the six-year period, increasing from $10,138,700 thousand in 2017 to $13,922,100 thousand in 2022. This represents a steady growth in revenue, with annual increments reflecting sustained sales expansion.
- Operating Income
- Operating income followed a generally positive trajectory, rising from $1,305,300 thousand in 2017 to $1,658,000 thousand in 2020. However, it slightly declined in 2021 to $1,598,000 thousand before marginally recovering to $1,607,000 thousand in 2022. The growth was noticeable in the initial years but plateaued towards the end of the period analyzed.
- Segment Profit Margin
- The segment profit margin initially showed an increase from 12.87% in 2017 to a peak of 14.05% in 2019, indicating improved profitability relative to sales. Following this peak, the margin decreased each year reaching 11.54% in 2022. This downward trend suggests rising costs or pricing pressures despite the growth in sales and relatively stable operating income in the later years.
- Summary of Trends
- The data indicates healthy and steady sales growth across the period, which was accompanied by an increase in operating income during the first several years. Nonetheless, profitability as measured by segment profit margin declined in the last three years, which could imply challenges in managing expenses or competitive pressures affecting margins. Overall, while revenue expanded, the ability to convert sales into proportionate profit weakened towards the end of the reported period.
Segment Profit Margin: Family Dollar
Dollar Tree Inc.; Family Dollar; segment profit margin calculation
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Operating income (loss) | ||||||
| Net sales | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
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
Segment profit margin = 100 × Operating income (loss) ÷ Net sales
= 100 × ÷ =
- Operating Income (Loss)
- The operating income displays significant volatility over the analyzed periods. Initially, it increased from 399.5 million in early 2017 to 517.2 million in early 2018. However, in early 2019, there was a drastic decline to a loss of 2.32 billion, followed by a smaller loss of 81 million in early 2020. The segment then recovered strongly, achieving positive operating income of 655.6 million in early 2021 and 543.1 million in early 2022, though the latter shows a decrease compared to the previous year.
- Net Sales
- Net sales have illustrated a steady upward trend over the time frame. Starting at 10.58 billion in early 2017, net sales rose gradually each year, reaching 11.08 billion in early 2018 and then remaining relatively flat through early 2020. A noticeable increase occurred in early 2021 to 12.24 billion, followed by a slight increment to 12.39 billion in early 2022. Overall, the trend reflects consistent growth in sales.
- Segment Profit Margin
- The segment profit margin correlates with the fluctuation observed in operating income. It improved from 3.78% in early 2017 to 4.67% in early 2018. The margin then dropped sharply to -20.88% in early 2019, indicating significant operating losses relative to sales. It marginally improved to -0.73% in early 2020. The margin rebounded to positive territory with 5.35% in early 2021 and decreased slightly to 4.38% in early 2022, following the reduction in operating income during the same periods.
- Summary
- Overall, the segment experienced substantial instability around the 2019 fiscal year, marked by considerable operating losses and negative profit margins despite stable sales volumes. Subsequent years show a recovery trend, with improvements in profitability indicators and increasing net sales. The data suggests that operational challenges impacting profitability were addressed post-2019, leading to restoration of positive margins and operating income, even though the profitability slightly declined in the last reported period.
Segment Return on Assets (Segment ROA)
Dollar Tree Inc., ROA by reportable segment
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | |
|---|---|---|---|---|---|---|
| Dollar Tree | ||||||
| Family Dollar |
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).
- Dollar Tree Segment ROA
- The Return on Assets (ROA) for this segment initially increased steadily from 35.23% in early 2017 to a peak of 41.22% by early 2019. However, a notable decline followed, with ROA dropping significantly to 21.55% in early 2020, continuing to decrease in the subsequent years, reaching 18.43% in early 2021 and 17.17% in early 2022. This indicates a weakening efficiency in utilizing assets to generate returns over the last three years despite the strong performance in prior periods.
- Family Dollar Segment ROA
- The ROA for this segment shows a more volatile pattern. It began with a modest increase from 3.33% in early 2017 to 4.23% in early 2018, but then sharply turned negative to -25.37% by early 2019. Following this deep negative dip, it recovered closer to break-even levels, with small negative and positive values in subsequent years: -0.71% in early 2020, 5.67% in early 2021, and a slight decline to 4.57% in early 2022. This volatile ROA suggests challenges in asset profitability during the period around 2019, with some recovery but continued instability thereafter.
- Overall Observations
- The Dollar Tree segment has consistently generated substantially higher ROA percentages compared to the Family Dollar segment, though it has experienced a clear downward trend since 2019. Meanwhile, the Family Dollar segment shows significantly more instability with a marked downturn in 2019 and partial recovery later. Together, this data suggests that while Dollar Tree's asset profitability diminished, it remained positive and robust relative to Family Dollar, which faced operational difficulties impacting its asset returns more severely.
Segment ROA: Dollar Tree
Dollar Tree Inc.; Dollar Tree; segment ROA calculation
| 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) | ||||||
| Total assets | ||||||
| Segment Profitability Ratio | ||||||
| Segment ROA1 | ||||||
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
Segment ROA = 100 × Operating income (loss) ÷ Total assets
= 100 × ÷ =
- Operating Income (Loss)
- The operating income demonstrated a steady increase from 1,305,300 thousand USD in 2017 to a peak of 1,657,800 thousand USD in 2020. However, it slightly declined in the subsequent years, settling around 1,597,000 thousand USD in 2021 and slightly improving to 1,607,000 thousand USD in 2022. Overall, the operating income showed growth with minor fluctuations towards the end of the period.
- Total Assets
- Total assets experienced notable growth over the period. Beginning at 3,705,500 thousand USD in 2017, assets increased moderately to 4,113,400 thousand USD in 2018 but then slightly decreased to 3,992,600 thousand USD in 2019. From 2019 onward, there was a significant rise, with assets more than doubling to 7,694,000 thousand USD in 2020, followed by continued growth to 8,669,300 thousand USD in 2021 and reaching 9,358,400 thousand USD in 2022.
- Segment Return on Assets (ROA)
- The segment ROA displayed a declining trend throughout the period. Starting at 35.23% in 2017, it rose slightly to 36.03% in 2018 and then increased to a high of 41.22% in 2019. From 2020 onwards, there was a sharp decline to 21.55%, further dropping to 18.43% in 2021 and then to 17.17% in 2022. This downward trend suggests that despite the increasing total assets, the efficiency in generating returns from those assets has decreased over the recent years.
Segment ROA: Family Dollar
Dollar Tree Inc.; Family Dollar; segment ROA calculation
| 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) | ||||||
| Total assets | ||||||
| Segment Profitability Ratio | ||||||
| Segment ROA1 | ||||||
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
Segment ROA = 100 × Operating income (loss) ÷ Total assets
= 100 × ÷ =
- Operating Income (Loss)
- Operating income exhibited considerable volatility over the observed periods. Beginning at $399,500 thousand in early 2017, it increased significantly to $517,200 thousand by early 2018. However, in early 2019, the segment experienced a substantial operating loss of $2,320,000 thousand. This loss was markedly reduced in early 2020 to $81,000 thousand, returning to positive territory with $655,600 thousand in early 2021, and slightly decreasing to $543,100 thousand in early 2022. The sharp decline in 2019 stands out as an anomaly in the otherwise positive trend.
- Total Assets
- Total assets remained relatively stable but showed some fluctuations. The assets increased slightly from $11,996,100 thousand in 2017 to $12,219,400 thousand in 2018. They then declined to $9,144,700 thousand in 2019, followed by a recovery in the subsequent years, rising to $11,484,900 thousand in 2020, $11,562,200 thousand in 2021, and $11,871,800 thousand in 2022. The dip in 2019 corresponds to the same year of significant operating loss, indicating potential asset impairments or revaluations.
- Segment Return on Assets (ROA)
- Segment ROA mirrored the pattern seen in operating income and total assets, with values fluctuating notably over time. Starting at 3.33% in 2017, it increased to 4.23% in 2018 before plunging to negative 25.37% in 2019. The negative ROA reflects the operating loss and asset reduction in that year. Subsequently, the ROA improved to negative 0.71% in 2020, then turned positive at 5.67% in 2021, and slightly decreased to 4.57% in 2022. This trend indicates a recovery in asset profitability following the downturn in 2019.
- Overall Analysis
- The data reveals a pronounced disruption in 2019, characterized by a steep operating loss, significant reduction in total assets, and a deeply negative ROA. This period of negative performance appears to be an outlier amid an otherwise relatively stable and positive trend. Post-2019, recovery is evident, with improvements in operating income and ROA alongside asset stabilization. Nevertheless, the segment has yet to fully regain the highest levels noted prior to 2019, reflecting ongoing challenges or restructuring effects within the segment.
Segment Asset Turnover
Dollar Tree Inc., asset turnover by reportable segment
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | |
|---|---|---|---|---|---|---|
| Dollar Tree | ||||||
| Family Dollar |
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).
- Dollar Tree Segment Asset Turnover
- The asset turnover ratio for the Dollar Tree segment displayed a generally declining trend over the six-year period. The ratio started at 2.74 in 2017, showing a slight decrease to 2.71 in 2018, followed by a moderate increase to 2.93 in 2019. However, from 2019 onward, there was a notable decline, with the ratio dropping sharply to 1.63 in 2020. This downward trajectory continued gradually, reaching 1.53 in 2021 and further decreasing marginally to 1.49 in 2022. Overall, the asset turnover ratio for Dollar Tree weakened significantly after 2019, suggesting reduced efficiency in generating revenue from its assets in recent years.
- Family Dollar Segment Asset Turnover
- The Family Dollar segment exhibited a more volatile but generally upward trend in asset turnover ratios during the same period. The ratio started relatively low at 0.88 in 2017, increased slightly to 0.91 in 2018, and saw a more substantial rise to 1.22 in 2019. This peak was followed by a decrease to 0.97 in 2020, but the ratio improved again in the subsequent years, reaching 1.06 in 2021 and slightly declining to 1.04 in 2022. Despite the fluctuations, the Family Dollar segment's asset turnover ratio improved overall compared to the 2017 baseline, indicating enhanced asset utilization efficiency over the period examined.
- Comparative Insights
- When comparing the two segments, Dollar Tree consistently maintained a higher asset turnover ratio than Family Dollar throughout the period, although the gap narrowed considerably after 2019 due to Dollar Tree's sharp decline. The significant decrease in Dollar Tree’s ratio post-2019 contrasts with the relatively stable or improving trend of Family Dollar’s ratio. This divergence may reflect differences in operational efficiency, asset management, or market conditions impacting each segment differently in recent years.
Segment Asset Turnover: Dollar Tree
Dollar Tree Inc.; Dollar Tree; segment asset turnover calculation
| 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 | ||||||
| Total assets | ||||||
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | ||||||
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
Segment asset turnover = Net sales ÷ Total assets
= ÷ =
- Net Sales
- Net sales have demonstrated a consistent upward trend throughout the periods analyzed. Starting at approximately 10.14 billion USD in early 2017, net sales increased steadily each year, reaching approximately 13.92 billion USD by early 2022. This reflects an overall growth of about 37%, indicating strengthening revenue generation over the six-year span.
- Total Assets
- Total assets showed a moderate increase from 3.71 billion USD in early 2017 to around 4.11 billion USD in early 2018, but then declined slightly to approximately 3.99 billion USD in early 2019. A significant increase occurred in early 2020, with total assets nearly doubling to approximately 7.69 billion USD. This upward trajectory continued through early 2022, reaching approximately 9.36 billion USD. The sharp rise starting in 2020 suggests substantial investments or acquisitions during this period, effectively expanding the asset base.
- Segment Asset Turnover
- Segment asset turnover exhibited relative stability around 2.7 to 2.9 from 2017 through 2019, indicating efficient utilization of assets in generating sales. However, a marked decline occurred in 2020, with the ratio dropping sharply to 1.63 and continuing to decrease slightly through 2022 to 1.49. This decline implies that despite increasing sales and a growing asset base, the efficiency of asset use to generate revenues has diminished substantially since 2020, potentially reflecting the impact of the rapid asset expansion on operational productivity.
Segment Asset Turnover: Family Dollar
Dollar Tree Inc.; Family Dollar; segment asset turnover calculation
| 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 | ||||||
| Total assets | ||||||
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | ||||||
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
Segment asset turnover = Net sales ÷ Total assets
= ÷ =
- Net Sales
- Net sales demonstrate a consistent upward trend over the six-year period. Beginning at approximately 10.58 billion USD in early 2017, sales increased steadily each year, reaching around 12.39 billion USD by early 2022. The most notable year-over-year growth appears in the 2020 to 2021 period, where sales rose from approximately 11.10 billion USD to 12.24 billion USD, suggesting a period of accelerated revenue expansion.
- Total Assets
- Total assets fluctuate over the analyzed period. Initially, assets rose slightly from roughly 12.00 billion USD in 2017 to 12.22 billion USD in 2018 but then declined significantly to approximately 9.14 billion USD in 2019. Following this decrease, assets rebounded in subsequent years to about 11.87 billion USD by early 2022. This pattern indicates some asset optimization or restructuring activities around 2019, followed by a recovery phase.
- Segment Asset Turnover
- The segment asset turnover ratio exhibits variability across the years. Starting at 0.88 in early 2017, the ratio increased to 0.91 in 2018 and peaked at 1.22 in 2019. This peak coincides with the dip in total assets, indicating more efficient use of assets to generate sales during that year. After 2019, the ratio declined to 0.97 in 2020 but improved again in 2021 to 1.06 before slightly decreasing to 1.04 in 2022. Overall, the turnover ratios suggest fluctuating asset efficiency with peak performance occurring in 2019.
- Summary of Trends
- The data presents a scenario of steady sales growth coupled with fluctuating asset levels and variable asset efficiency. While net sales consistently grew, total assets experienced a notable dip in 2019, which correlates with the highest asset turnover ratio for the period, suggesting an intensified focus on asset utilization during that year. Post-2019, total assets gradually recovered while asset turnover ratios moderated but remained above the initial years. This indicates that despite increased asset holdings, the segment maintained relatively strong asset efficiency while expanding sales.
Segment Capital Expenditures to Depreciation
Dollar Tree Inc., capital expenditures to depreciation by reportable segment
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | |
|---|---|---|---|---|---|---|
| Dollar Tree | ||||||
| Family Dollar |
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).
- Dollar Tree Segment
- The capital expenditures to depreciation ratio for the Dollar Tree segment exhibited variability over the analyzed periods. Initially, it started at 1.68 and then declined to 1.52 in the subsequent year. This was followed by an increase reaching a peak of 1.97 by the fiscal year ending February 1, 2020. After this peak, the ratio demonstrated a downward trend, decreasing to 1.56 and then slightly further to 1.51 in the latest period. Overall, while the segment experienced fluctuations, the ratio remained above 1 in all years, indicating capital expenditures consistently exceeded depreciation during the period.
- Family Dollar Segment
- The Family Dollar segment showed a generally increasing trend in its capital expenditures to depreciation ratio across the reviewed periods. Beginning at a low ratio of 0.40, the figure increased significantly to 0.69 and then marginally rose to 0.72 in the subsequent years. A notable escalation occurred in the fiscal year ending February 1, 2020, when the ratio surged to 1.25. Although the following year saw a slight decline to 1.03, the ratio rebounded strongly to 1.35 in the latest period. This progression indicates a transition from capital expenditures being considerably less than depreciation to eventually exceeding it in recent years.
- Comparative Insights
- The Dollar Tree segment consistently maintained higher capital expenditures relative to depreciation compared to the Family Dollar segment across all periods. The Family Dollar's ratio exhibited more pronounced growth, reflecting an increasing investment relative to the aging of assets. The shifts suggest a possible strategic emphasis on increased capital investment within the Family Dollar operations in recent years, while Dollar Tree's growth in capital expenditures was relatively steadier and more moderate after peaking in 2020.
Segment Capital Expenditures to Depreciation: Dollar Tree
Dollar Tree Inc.; Dollar Tree; segment capital expenditures to depreciation calculation
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Additions to property, plant and equipment | ||||||
| Depreciation and amortization expense | ||||||
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | ||||||
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
Segment capital expenditures to depreciation = Additions to property, plant and equipment ÷ Depreciation and amortization expense
= ÷ =
- Additions to Property, Plant and Equipment
- The capital expenditures showed a fluctuating trend over the six-year period. Starting at $404.9 million in early 2017, the amount decreased slightly in 2018 to $383.1 million before increasing significantly to a peak of $547.5 million in early 2020. Following this peak, there was a decline in 2021 to $470.4 million, with a slight increase again in 2022 to $477.1 million. Overall, the expenditures exhibit volatility with a notable high point in 2020.
- Depreciation and Amortization Expense
- Depreciation and amortization expenses have shown a consistent upward trend throughout the period. Beginning at $241.3 million in 2017, the figures increased steadily each year, reaching $316.0 million by early 2022. This steady rise indicates ongoing and growing capital asset base subject to amortization, reflecting investments over previous periods.
- Segment Capital Expenditures to Depreciation Ratio
- This ratio exhibits variability and a general decline over the years. Starting at 1.68 in 2017, it decreased to 1.52 in 2018, increased to a high of 1.97 in 2020, and then declined again to 1.56 in 2021 and 1.51 in 2022. The fluctuations suggest changes in capital investment intensity relative to the depreciation expense. The peak in 2020 aligns with the highest level of capital expenditures that year, while the subsequent declines indicate more moderate investment activity compared to the asset depreciation levels.
Segment Capital Expenditures to Depreciation: Family Dollar
Dollar Tree Inc.; Family Dollar; segment capital expenditures to depreciation calculation
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Additions to property, plant and equipment | ||||||
| Depreciation and amortization expense | ||||||
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | ||||||
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
Segment capital expenditures to depreciation = Additions to property, plant and equipment ÷ Depreciation and amortization expense
= ÷ =
- Additions to property, plant and equipment
- The capital expenditures showed an overall increasing trend from 2017 to 2022. Beginning at $159,800 thousand in 2017, there was a substantial rise to $249,100 thousand in 2018 and a marginal increase to $251,000 thousand in 2019. A notable spike occurred in 2020, reaching $425,200 thousand, followed by a decrease to $362,100 thousand in 2021. The upward trajectory resumed in 2022, peaking at $498,900 thousand, indicating significant reinvestment in property, plant, and equipment over the period.
- Depreciation and amortization expense
- Depreciation and amortization expenses generally declined from 2017 to 2020, starting at $396,500 thousand and falling to $339,100 thousand. In 2021, the expense increased slightly to $352,600 thousand and continued this moderate rise to $369,800 thousand in 2022. This pattern suggests a reduction in depreciation expense during the earlier years possibly due to asset write-offs or aging assets, followed by a gradual increase potentially linked to the higher capital expenditures in later years.
- Segment capital expenditures to depreciation ratio
- The ratio of capital expenditures to depreciation increased significantly over the period. It started at a low of 0.4 in 2017, nearly doubling to 0.69 in 2018, and slightly increasing to 0.72 in 2019. The ratio more than doubled in 2020, reaching 1.25, indicating that capital investments substantially outpaced depreciation that year. Although it dipped slightly to 1.03 in 2021, it increased again to 1.35 in 2022, reflecting sustained heavy investment relative to asset depreciation.
Net sales
Dollar Tree Inc., net sales by reportable segment
US$ in thousands
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | |
|---|---|---|---|---|---|---|
| Dollar Tree | ||||||
| Family Dollar | ||||||
| Consolidated |
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).
- Dollar Tree Net Sales
- There is a consistent upward trend in net sales for Dollar Tree over the six-year period. Beginning at approximately $10.1 billion in early 2017, sales steadily increased each year, reaching about $13.9 billion by early 2022. The growth appears steady, with annual increments ranging from around $600 million to $800 million.
- Family Dollar Net Sales
- Sales for Family Dollar exhibit a more variable pattern. The figures started at roughly $10.6 billion in early 2017 and saw a moderate increase through early 2018, reaching approximately $11.1 billion. However, from 2018 through 2020, sales remained relatively flat, hovering near $11.1 billion. In 2021, sales rose significantly to about $12.2 billion, followed by a slight further increase to around $12.4 billion in 2022.
- Consolidated Net Sales
- The consolidated net sales, representing the combined revenue of Dollar Tree and Family Dollar, exhibit continuous growth over the period analyzed. From approximately $20.7 billion in early 2017, consolidated sales increased steadily to about $26.3 billion by early 2022. The growth is largely attributable to the incremental increases in Dollar Tree's sales and contributes to the overall upward trajectory, despite the periods of stagnation observed in Family Dollar's sales during 2018-2020.
- Insights and Observations
- Dollar Tree's segment demonstrates a strong and stable growth trajectory, indicating consistent expansion or effective sales strategies. In contrast, Family Dollar's sales show a plateau phase from 2018 to 2020, possibly suggesting market saturation or operational challenges during this time. The resurgence in Family Dollar sales in 2021-2022 could imply recovery efforts or positive impacts from strategic initiatives. Overall, the combined business continues to grow robustly, driven primarily by Dollar Tree's performance and complemented by recent improvements in the Family Dollar segment.
Operating income (loss)
Dollar Tree Inc., operating income (loss) by reportable segment
US$ in thousands
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | |
|---|---|---|---|---|---|---|
| Dollar Tree | ||||||
| Family Dollar | ||||||
| Corporate, support and Other | ||||||
| Consolidated |
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).
- Dollar Tree Segment
- The Dollar Tree segment shows a consistent increase in operating income from 2017 through 2020, rising from approximately $1.3 billion to almost $1.66 billion. This growth stabilizes somewhat from 2020 onwards, maintaining values near $1.6 billion through 2022, indicating steady operational performance with limited growth after 2020.
- Family Dollar Segment
- The Family Dollar segment exhibits significant volatility over the analyzed years. Initially, operating income increases from about $399 million in 2017 to $517 million in 2018. However, there is a substantial and sharp decline into a notable operating loss of approximately $2.32 billion in 2019. This loss dramatically improves in 2020, narrowing to an $81 million loss. Following 2020, the segment returns to profitability with $655.6 million in 2021, followed by a slight decrease to $543.1 million in 2022. This pattern suggests severe challenges in 2019, followed by recovery efforts that substantially improved profitability in the subsequent years.
- Corporate, Support and Other Segment
- The Corporate, Support and Other segment consistently reports operating losses throughout the available periods starting from 2019, with losses deepening from $265.4 million in 2019 to a peak loss of $365.7 million in 2021, then slightly improving to $338.7 million in 2022. This steady loss trend indicates ongoing costs or challenges related to corporate functions or other non-operating items impacting overall profitability negatively.
- Consolidated Figures
- The consolidated operating income follows a trajectory influenced largely by the Family Dollar segment’s volatility. The consolidated income increases from $1.7 billion in 2017 to a peak of nearly $2 billion in 2018, before plunging to a significant consolidated operating loss of approximately $939.5 million in 2019. Recovery is evident from 2020 onwards, with operating income returning to positive territory at $1.26 billion, rising to $1.89 billion in 2021, and slightly decreasing to $1.81 billion in 2022. This recovery reflects successful efforts to stabilize and grow earnings post-2019 losses.
Depreciation and amortization expense
Dollar Tree Inc., depreciation and amortization expense by reportable segment
US$ in thousands
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | |
|---|---|---|---|---|---|---|
| Dollar Tree | ||||||
| Family Dollar | ||||||
| Corporate, support and Other | ||||||
| Consolidated |
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).
- Dollar Tree Segment Depreciation and Amortization Expense
- The Dollar Tree segment shows a consistent upward trend in depreciation and amortization expenses from 2017 to 2022. Starting at $241.3 million in 2017, the expense increased steadily each year to reach $316 million in 2022. This represents an overall growth of approximately 31% over the six-year period, with gradual annual increases suggesting sustained investment in assets or acquisitions.
- Family Dollar Segment Depreciation and Amortization Expense
- The Family Dollar segment exhibits a declining trend from 2017 through 2020, with expenses decreasing from $396.5 million in 2017 to $339.1 million in 2020. After this period of decline, the expense showed a modest recovery, increasing to $369.8 million by 2022. Despite this partial rebound, the 2022 figure remains below the 2017 starting point by approximately 7%, indicating reduced amortization or depreciation charges possibly due to asset disposals or changes in asset base.
- Corporate, Support, and Other Segment Depreciation and Amortization Expense
- This segment's depreciation and amortization expense data begins in 2019, with $20.9 million reported. The expense increased to $31.8 million in 2021 before slightly decreasing to $30.2 million in 2022. The initial increase could be associated with expanded corporate operations or support infrastructure investments, while the minor decline in the last period may indicate optimization or capitalization adjustments.
- Consolidated Depreciation and Amortization Expense
- The consolidated data reflects the aggregate of segment expenses and shows a general upward trajectory over the six-year period. The total expense decreased marginally from $637.8 million in 2017 to $611.5 million in 2018 but then rose consistently each year to reach $716 million in 2022. The overall increase of approximately 12% from 2017 to 2022 aligns with the increase seen in the Dollar Tree segment and the recent uptick in Family Dollar and Corporate segment expenses, suggesting steady asset growth and capital expenditure within the company.
Total assets
Dollar Tree Inc., total assets by reportable segment
US$ in thousands
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | |
|---|---|---|---|---|---|---|
| Dollar Tree | ||||||
| Family Dollar | ||||||
| Corporate, support and Other | ||||||
| Consolidated |
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).
- Dollar Tree Segment
-
The Dollar Tree segment demonstrates a general upward trend in total assets over the six-year period. Starting at approximately $3.71 billion in early 2017, the assets increase gradually to about $4.11 billion in early 2018. A slight decrease to around $3.99 billion is observed in early 2019. However, a significant jump occurs in 2020, with assets almost doubling to $7.69 billion, followed by steady growth reaching $9.36 billion in early 2022. This pattern suggests notable expansion or asset acquisition strategies implemented around 2020, contributing to the substantial increase.
- Family Dollar Segment
-
The Family Dollar segment shows a relatively stable asset base with some fluctuations. The assets start at about $11.996 billion in early 2017, increasing slightly to $12.22 billion in early 2018. There is a marked decline in early 2019 to approximately $9.14 billion, which recovers to $11.48 billion in early 2020. Since then, a slight upward trend is observed, with assets reaching $11.56 billion in 2021 and $11.87 billion in early 2022. The volatility between 2018 and 2020 may reflect restructuring or divestitures, followed by stabilization in asset holdings.
- Corporate, Support, and Other Segment
-
This segment's data is incomplete for the years prior to 2019, where it first appears with assets valued at $363.9 million. From 2019 onward, total assets in this segment show a consistent increase, rising to $395.7 million in 2020, $464.5 million in 2021, and $491.6 million in early 2022. The growth trajectory indicates gradual investment or accumulation of assets in corporate and support functions over the analyzed period.
- Consolidated Total Assets
-
The consolidated total assets reflect the combined performance of all segments. The data shows growth from $15.70 billion in early 2017 to a peak of $16.33 billion in early 2018, followed by a decline to $13.50 billion in early 2019. A substantial increase is evident thereafter, reaching $19.57 billion in early 2020 and continuing to grow to $20.70 billion in 2021 and $21.72 billion in early 2022. This overall trend indicates significant asset growth in recent years, predominantly driven by the marked increase in the Dollar Tree segment and recovery in Family Dollar assets.
Additions to property, plant and equipment
Dollar Tree Inc., additions to property, plant and equipment by reportable segment
US$ in thousands
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | |
|---|---|---|---|---|---|---|
| Dollar Tree | ||||||
| Family Dollar | ||||||
| Corporate, support and Other | ||||||
| Consolidated |
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).
- Overall Trend in Capital Expenditures
- The consolidated additions to property, plant, and equipment show a general upward trajectory over the six-year period from 2017 to 2022. The total expenditures increased from $564.7 million in 2017 to $1.0212 billion in 2022, indicating a significant expansion in capital investment.
- Dollar Tree Segment
- The Dollar Tree segment displayed a fluctuating pattern. Expenditures initially declined slightly from $404.9 million in 2017 to $383.1 million in 2018. Following this dip, a strong recovery was observed with a peak at $547.5 million in 2020. Subsequent years saw a modest decline, stabilizing around $470 million in 2021 and $477.1 million in 2022. This suggests a strategic reallocation of resources rather than consistent growth.
- Family Dollar Segment
- The Family Dollar segment experienced robust growth in capital expenditures. Beginning at $159.8 million in 2017, the segment displayed a steady increase year-over-year, more than tripling its additions to $498.9 million by 2022. Notably, significant jumps occurred between 2018 and 2020, reaching $425.2 million, indicating an accelerated investment phase before continuing to grow moderately through 2022.
- Corporate, Support, and Other Segment
- Data for this segment is missing for 2017 and 2018, but from 2019 onward, expenditures ranged between $45.2 million and $110.5 million. The peak occurred in 2019 at $110.5 million, followed by a decrease in subsequent years, stabilizing near $45 million by 2022. This trend suggests a reduction or more efficient management of corporate and support-related capital expenditures after an initial spike.
- Summary Insights
- The increasing consolidated capital expenditures reflect an overall growth strategy encompassing both store segments and corporate functions. The Family Dollar segment is the primary driver of the increase, signifying heightened investment focus. In contrast, the Dollar Tree segment shows more variable investment levels, perhaps adjusting to operational needs or shifting priorities. The decline in corporate-related spending after 2019 may indicate cost optimization efforts or completion of earlier initiatives. These patterns together highlight a balanced approach to expansion and internal resource management.