Analysis of Reportable Segments
Dollar Tree Inc. operates in 2 segments: Dollar Tree and Family Dollar.
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 | 11.54% | 12.05% | 13.25% | 14.05% | 13.27% | 12.87% |
| Family Dollar | 4.38% | 5.35% | -0.73% | -20.88% | 4.67% | 3.78% |
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 profitability profiles of the two reportable segments exhibit divergent trends between 2017 and 2022. The Dollar Tree segment consistently maintains significantly higher profit margins compared to the Family Dollar segment, although both experienced a decline in the final year of the period.
- Dollar Tree Segment Performance
- A growth trend was observed from 2017 to 2019, with profit margins increasing from 12.87% to a peak of 14.05%. Following this peak, a consistent downward trajectory occurred over the subsequent three years, resulting in a margin of 11.54% by January 29, 2022. This represents a contraction of 2.51 percentage points from the 2019 peak.
- Family Dollar Segment Performance
- This segment displayed extreme volatility, characterized by a severe margin collapse in 2019, where profitability fell to -20.88%. A recovery phase followed, with margins improving to -0.73% in 2020 and returning to positive territory at 5.35% in 2021. By 2022, the margin slightly decreased to 4.38%, though it remained above 2017 levels.
- Comparative Segment Analysis
- A substantial margin gap persists between the two business units. While the Dollar Tree segment remained in the double digits throughout the analyzed period, Family Dollar exhibited instability and significantly lower returns. The recovery of the Family Dollar segment from its 2019 deficit suggests a period of operational correction, although it has not reached the stability or profitability levels of the Dollar Tree segment.
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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) | 1,607,000) | 1,598,000) | 1,657,800) | 1,645,900) | 1,481,900) | 1,305,300) |
| Net sales | 13,922,100) | 13,265,000) | 12,507,900) | 11,712,100) | 11,164,400) | 10,138,700) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 11.54% | 12.05% | 13.25% | 14.05% | 13.27% | 12.87% |
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 × 1,607,000 ÷ 13,922,100 = 11.54%
The financial performance of the segment is characterized by a sustained increase in top-line revenue contrasted with a subsequent compression in operational efficiency. While net sales grew consistently over the six-year period, operating income peaked in 2020, leading to a gradual decline in the segment profit margin starting after 2019.
- Net Sales Trajectory
- A consistent upward trend in net sales is observed, increasing from US$ 10.14 billion in January 2017 to US$ 13.92 billion in January 2022. This represents a steady expansion of the revenue base throughout the reporting period.
- Operating Income Dynamics
- Operating income grew steadily from 2017, reaching a peak of US$ 1.66 billion in February 2020. However, despite the continued growth in net sales, operating income experienced a contraction in 2021 and remained relatively stagnant through January 2022 at US$ 1.61 billion.
- Segment Profit Margin Analysis
- The segment profit margin exhibited a peak in February 2019 at 14.05%, having risen from 12.87% in 2017. Following this peak, a continuous downward trend is observed over the subsequent three years, with margins falling to 13.25% in 2020, 12.05% in 2021, and concluding at 11.54% in January 2022.
- Operational Efficiency Correlation
- The divergence between growing net sales and declining profit margins indicates that operating expenses grew at a faster rate than revenue between 2019 and 2022, resulting in a reduction of the overall conversion of sales into operating profit.
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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) | 543,100) | 655,600) | (81,000) | (2,320,000) | 517,200) | 399,500) |
| Net sales | 12,387,700) | 12,243,400) | 11,102,900) | 11,111,200) | 11,081,100) | 10,580,500) |
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | 4.38% | 5.35% | -0.73% | -20.88% | 4.67% | 3.78% |
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 × 543,100 ÷ 12,387,700 = 4.38%
The Family Dollar segment experienced significant volatility in profitability between 2017 and 2022, characterized by a severe operational downturn in 2019 followed by a progressive recovery. While net sales maintained a general upward trajectory throughout the period, operating results fluctuated sharply, indicating that revenue growth did not consistently translate into stable profit margins.
- Net Sales Trend
- Net sales grew from US$10.58 billion in 2017 to US$12.39 billion by 2022. Growth remained relatively consistent until 2020, followed by a more pronounced increase in 2021, where sales rose from US$11.10 billion to US$12.24 billion.
- Operating Income Volatility
- Operating results shifted from a positive US$517.2 million in 2018 to a substantial loss of US$2.32 billion in 2019. This sharp decline represents a critical deviation from the segment's typical performance. However, the segment managed to reduce these losses to US$81 million in 2020 before returning to profitability in 2021 with an operating income of US$655.6 million.
- Segment Profit Margin Analysis
- The profit margin mirrored the volatility of operating income, plummeting to -20.88% in 2019. A recovery phase is observed starting in 2020, with the margin improving to -0.73%, and further ascending to a period peak of 5.35% in 2021. The margin then settled at 4.38% in 2022, suggesting a return to operational levels comparable to those seen in 2018.
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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 | 17.17% | 18.43% | 21.55% | 41.22% | 36.03% | 35.23% |
| Family Dollar | 4.57% | 5.67% | -0.71% | -25.37% | 4.23% | 3.33% |
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 return on assets (ROA) for the period between 2017 and 2022 reveals a stark divergence in performance and stability between the two reporting segments. While the Dollar Tree segment maintained a substantially higher return on assets throughout the period, it experienced a notable decline in efficiency after 2019. Conversely, the Family Dollar segment exhibited significant volatility, including a period of substantial negative returns, before stabilizing at a low positive rate.
- Dollar Tree Segment Performance
- A period of growth is observed from 2017 to 2019, with ROA increasing from 35.23% to a peak of 41.22%. This trend reversed sharply in 2020, where returns dropped to 21.55%. A consistent downward trajectory continued thereafter, reaching 17.17% by January 29, 2022.
- Family Dollar Segment Performance
- Performance was characterized by instability, beginning with low positive returns of 3.33% in 2017 and 4.23% in 2018. A significant collapse occurred in 2019, with ROA falling to -25.37%. Recovery followed in 2020 and 2021, with the latter year reaching 5.67% before slightly receding to 4.57% in 2022.
- Comparative Asset Efficiency
- The Dollar Tree segment consistently outperformed the Family Dollar segment in asset utilization. Despite the contraction in the Dollar Tree segment's returns and the recovery within the Family Dollar segment, a substantial gap in profitability relative to assets persists, indicating a fundamental difference in the operational efficiency of the two segments.
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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) | 1,607,000) | 1,598,000) | 1,657,800) | 1,645,900) | 1,481,900) | 1,305,300) |
| Total assets | 9,358,400) | 8,669,300) | 7,694,000) | 3,992,600) | 4,113,400) | 3,705,500) |
| Segment Profitability Ratio | ||||||
| Segment ROA1 | 17.17% | 18.43% | 21.55% | 41.22% | 36.03% | 35.23% |
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 × 1,607,000 ÷ 9,358,400 = 17.17%
The financial performance of the segment from 2017 to 2022 is characterized by a significant divergence between operating income growth and asset expansion, leading to a marked decline in return on assets (ROA) after 2019.
- Operating Income Trends
- Operating income demonstrated a consistent upward trajectory from 2017 to 2020, rising from 1.31 billion to a peak of 1.66 billion. Following this peak, growth plateaued, with figures stabilizing between 1.60 billion and 1.61 billion through 2022.
- Asset Base Expansion
- A substantial shift in the asset structure occurred in 2020. Total assets remained relatively stable between 2017 and 2019, fluctuating around 4 billion. However, assets nearly doubled in 2020 to 7.69 billion and continued to grow steadily, reaching 9.36 billion by 2022.
- Segment ROA Performance
- The Segment ROA experienced an initial period of improvement, increasing from 35.23% in 2017 to a high of 41.22% in 2019. This was followed by a sharp correction in 2020, where the ROA fell to 21.55%. The downward trend continued through 2022, with the ratio concluding at 17.17%.
- Analysis of Asset Efficiency
- The compression of the Segment ROA is directly linked to the aggressive expansion of total assets relative to operating income. While the asset base grew by approximately 134% between 2019 and 2022, operating income remained virtually stagnant during the same interval. This indicates a significant reduction in the efficiency of asset utilization in generating operating profit during the latter half of the analyzed period.
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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) | 543,100) | 655,600) | (81,000) | (2,320,000) | 517,200) | 399,500) |
| Total assets | 11,871,800) | 11,562,200) | 11,484,900) | 9,144,700) | 12,219,400) | 11,996,100) |
| Segment Profitability Ratio | ||||||
| Segment ROA1 | 4.57% | 5.67% | -0.71% | -25.37% | 4.23% | 3.33% |
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 × 543,100 ÷ 11,871,800 = 4.57%
The financial performance of the Family Dollar segment from 2017 to 2022 is characterized by extreme volatility, featuring a severe contraction in 2019 followed by a multi-year recovery. The segment experienced a transition from steady operational growth to a significant deficit, eventually returning to profitability levels that align with historical norms.
- Operating Income Volatility
- A positive trajectory was observed between 2017 and 2018, with operating income increasing from US$ 399.5 million to US$ 517.2 million. This trend reversed sharply in 2019, resulting in a substantial operating loss of US$ 2.32 billion. A recovery phase followed, with losses narrowing to US$ 81 million in 2020 and returning to profitability in 2021 with a peak income of US$ 655.6 million. A slight moderation occurred in 2022, with income settling at US$ 543.1 million.
- Asset Base Fluctuations
- Total assets exhibited a significant dip in 2019, falling to US$ 9.14 billion from a 2018 high of US$ 12.22 billion. This contraction occurred simultaneously with the segment's peak operating loss, suggesting possible asset impairments or strategic restructuring. In the subsequent three years, the asset base recovered steadily, reaching US$ 11.87 billion by January 2022.
- Segment Return on Assets (ROA) Interpretation
- The Segment ROA mirrored the volatility of operating income. After an initial increase from 3.33% in 2017 to 4.23% in 2018, the ratio collapsed to -25.37% in 2019. The metric showed a strong recovery trend, improving to -0.71% in 2020 and reaching a period maximum of 5.67% in 2021. The 2022 ROA of 4.57% indicates a stabilization of asset efficiency, returning the segment to a performance profile similar to that observed prior to the 2019 downturn.
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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 | 1.49 | 1.53 | 1.63 | 2.93 | 2.71 | 2.74 |
| Family Dollar | 1.04 | 1.06 | 0.97 | 1.22 | 0.91 | 0.88 |
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 asset turnover ratios exhibit divergent trajectories between the two reporting segments, although both experienced a peak in efficiency during the 2019 fiscal period. A significant shift in asset utilization occurred beginning in 2020, resulting in a marked contrast in how the two segments recovered or declined in subsequent years.
- Dollar Tree Segment
- A period of relative stability and growth was observed from 2017 to 2019, with the asset turnover ratio peaking at 2.93. This was followed by a sharp decline in 2020, where the ratio fell to 1.63. The downward trend persisted through 2021 and 2022, with the ratio reaching a low of 1.49. This suggests a substantial reduction in the revenue generated per unit of asset employed over the latter half of the analyzed period.
- Family Dollar Segment
- Asset turnover for this segment remained consistently lower than that of the Dollar Tree segment. The ratio climbed from 0.88 in 2017 to a peak of 1.22 in 2019. Following a dip to 0.97 in 2020, the segment demonstrated a recovery trend, with the ratio improving to 1.06 in 2021 and remaining relatively stable at 1.04 in 2022.
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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 | 13,922,100) | 13,265,000) | 12,507,900) | 11,712,100) | 11,164,400) | 10,138,700) |
| Total assets | 9,358,400) | 8,669,300) | 7,694,000) | 3,992,600) | 4,113,400) | 3,705,500) |
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | 1.49 | 1.53 | 1.63 | 2.93 | 2.71 | 2.74 |
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
= 13,922,100 ÷ 9,358,400 = 1.49
A comprehensive analysis of the financial metrics from 2017 to 2022 reveals a divergence between revenue growth and asset accumulation, which has significantly impacted the efficiency of asset utilization.
- Net Sales Trends
- Net sales exhibited consistent year-over-year growth throughout the analyzed period. Revenue increased from 10.14 billion US dollars in January 2017 to 13.92 billion US dollars by January 2022. This steady upward trajectory indicates a consistent expansion in top-line performance.
- Asset Base Expansion
- Total assets remained relatively stable between 2017 and 2019, fluctuating between 3.71 billion and 4.11 billion US dollars. However, a substantial increase occurred in February 2020, where total assets surged to 7.69 billion US dollars, representing a nearly 93% increase over the prior year. This growth continued through January 2022, reaching 9.36 billion US dollars.
- Segment Asset Turnover Efficiency
- The asset turnover ratio, which measures the efficiency of generating sales from assets, showed two distinct phases. From 2017 to 2019, the ratio remained strong and slightly improved, peaking at 2.93 in February 2019. Following the massive expansion of the asset base in 2020, the ratio experienced a sharp decline to 1.63 and continued a downward trend to 1.49 by January 2022.
The data indicates that while the organization successfully grew its sales, the scale of asset acquisition or valuation increases starting in 2020 far outpaced revenue gains. This imbalance resulted in a marked reduction in asset productivity, as the company generated substantially less revenue per dollar of assets in the latter half of the period compared to the initial years.
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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 | 12,387,700) | 12,243,400) | 11,102,900) | 11,111,200) | 11,081,100) | 10,580,500) |
| Total assets | 11,871,800) | 11,562,200) | 11,484,900) | 9,144,700) | 12,219,400) | 11,996,100) |
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | 1.04 | 1.06 | 0.97 | 1.22 | 0.91 | 0.88 |
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
= 12,387,700 ÷ 11,871,800 = 1.04
The financial performance of the Family Dollar segment over the six-year period from 2017 to 2022 is characterized by a steady increase in net sales and a general improvement in asset utilization efficiency. While net sales demonstrated a consistent upward trajectory, the asset turnover ratio experienced significant volatility, primarily driven by fluctuations in the total asset base.
- Net Sales Growth
- Net sales grew from US$ 10.58 billion in January 2017 to US$ 12.39 billion by January 2022. This represents a total increase of approximately 17% over the period. A period of relative stagnation occurred between February 2018 and February 2020, followed by a notable acceleration in growth during the 2021 and 2022 fiscal years.
- Total Asset Volatility
- The asset base exhibited non-linear movement, beginning at US$ 11.99 billion in 2017. A significant contraction was observed in February 2019, where total assets dropped to US$ 9.14 billion. Following this decline, assets returned to previous levels, reaching US$ 11.87 billion by January 2022, indicating a cycle of asset reduction followed by reinvestment or revaluation.
- Segment Asset Turnover Trends
- The asset turnover ratio improved from 0.88 in 2017 to 1.04 in 2022. A peak ratio of 1.22 was recorded in February 2019, which correlates directly with the sharp decrease in total assets during that period rather than a proportional spike in sales. Post-2019, the ratio stabilized, remaining above 1.0 in 2021 and 2022, suggesting that the segment is generating more than one dollar of sales for every dollar of assets employed.
In summary, the segment has transitioned from a sub-1.0 turnover ratio to a more efficient operational state. The correlation between the declining asset base in 2019 and the peak in turnover indicates a period of asset optimization or impairment that temporarily inflated the efficiency ratio before the asset base expanded again to support higher sales volumes.
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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 | 1.51 | 1.56 | 1.97 | 1.79 | 1.52 | 1.68 |
| Family Dollar | 1.35 | 1.03 | 1.25 | 0.72 | 0.69 | 0.40 |
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).
The analysis of capital expenditures relative to depreciation reveals distinct investment strategies and trajectories for the two reportable segments between 2017 and 2022. While one segment maintained a consistent profile of growth-oriented spending, the other underwent a significant transition from a period of under-investment to an expansionary phase.
- Dollar Tree Segment
- A consistent ratio above 1.0 was maintained throughout the period, indicating that capital expenditures systematically exceeded depreciation. The ratio exhibited moderate volatility, reaching a peak of 1.97 in 2020 before moderating to 1.51 by 2022. This sustained level of investment suggests a continuous focus on asset expansion and infrastructure modernization.
- Family Dollar Segment
- A pronounced upward trajectory is observed, starting from a low of 0.40 in 2017. During the first three years of the analyzed period, the ratio remained below 1.0, signaling that depreciation outpaced capital investment. A strategic shift occurred in 2020 when the ratio rose to 1.25, crossing the threshold into a growth phase. This trend continued with a minor retraction in 2021 followed by an increase to 1.35 in 2022.
The data demonstrates a convergence in investment intensity between the two segments. The substantial disparity observed in 2017 has narrowed significantly by 2022, as the Family Dollar segment transitioned from a maintenance or contraction mode toward a capital reinvestment strategy that more closely aligns with the historical behavior of the Dollar Tree segment.
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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 | 477,100) | 470,400) | 547,500) | 455,600) | 383,100) | 404,900) |
| Depreciation and amortization expense | 316,000) | 302,300) | 277,700) | 254,000) | 251,800) | 241,300) |
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | 1.51 | 1.56 | 1.97 | 1.79 | 1.52 | 1.68 |
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
= 477,100 ÷ 316,000 = 1.51
The financial trajectory from 2017 to 2022 reflects a consistent strategy of asset expansion, characterized by capital expenditures that consistently exceeded depreciation and amortization expenses. This indicates a sustained investment in growth and the modernization of the company's physical infrastructure.
- Capital Expenditure Trends
- Additions to property, plant and equipment exhibited volatility over the six-year period. After a slight decline in 2018, expenditures rose steadily, peaking at 547.5 million US dollars in 2020. Following this peak, capital spending stabilized, remaining between 470.4 million and 477.1 million US dollars during the 2021 and 2022 fiscal years.
- Depreciation and Amortization Growth
- Depreciation and amortization expenses demonstrated a linear and uninterrupted upward trend, increasing every year from 241.3 million US dollars in 2017 to 316.0 million US dollars in 2022. This steady increase is indicative of a growing total asset base resulting from cumulative historical investments.
- Investment-to-Depreciation Ratio Analysis
- The ratio of segment capital expenditures to depreciation fluctuated between a low of 1.51 and a high of 1.97. The ratio increased from 1.52 in 2018 to a peak of 1.97 in 2020, signaling a period of accelerated aggressive investment relative to asset wear. However, a subsequent decline is observed in 2021 and 2022, where the ratio returned to 1.56 and 1.51 respectively. While these later figures represent a moderation in investment intensity, the fact that the ratio remained well above 1.0 throughout the entire period confirms that the company continued to expand its capacity and replace assets at a rate significantly higher than the rate of depreciation.
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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 | 498,900) | 362,100) | 425,200) | 251,000) | 249,100) | 159,800) |
| Depreciation and amortization expense | 369,800) | 352,600) | 339,100) | 346,500) | 359,700) | 396,500) |
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | 1.35 | 1.03 | 1.25 | 0.72 | 0.69 | 0.40 |
Based on: 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28).
1 2022 Calculation
Segment capital expenditures to depreciation = Additions to property, plant and equipment ÷ Depreciation and amortization expense
= 498,900 ÷ 369,800 = 1.35
The Family Dollar segment experienced a significant shift in its capital allocation strategy between 2017 and 2022, transitioning from a period of conservative reinvestment to a phase of aggressive asset expansion.
- Additions to Property, Plant and Equipment
- A consistent upward trajectory is observed in capital expenditures, which increased from 159.8 million US dollars in 2017 to 498.9 million US dollars in 2022. This represents a substantial increase in annual investment, with the most significant growth occurring between 2019 and 2020.
- Depreciation and Amortization Expense
- Expenses related to depreciation and amortization remained relatively stable across the analyzed period. The figures fluctuated within a narrow range, starting at 396.5 million US dollars in 2017, reaching a low of 339.1 million US dollars in 2020, and ending at 369.8 million US dollars in 2022.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio grew steadily from 0.40 in 2017 to 1.35 in 2022. For the first three years of the period, the ratio remained below 1.0, indicating that capital spending was lower than the depreciation of existing assets. The ratio surpassed the 1.0 threshold in 2020, signaling a transition toward active asset growth and modernization, with the investment level significantly exceeding depreciation by 2022.
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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 | 13,922,100) | 13,265,000) | 12,507,900) | 11,712,100) | 11,164,400) | 10,138,700) |
| Family Dollar | 12,387,700) | 12,243,400) | 11,102,900) | 11,111,200) | 11,081,100) | 10,580,500) |
| Consolidated | 26,309,800) | 25,508,400) | 23,610,800) | 22,823,300) | 22,245,500) | 20,719,200) |
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).
Consolidated net sales exhibited a steady upward trajectory over the six-year period, increasing from $20.72 billion in 2017 to $26.31 billion in 2022. This represents a total consolidated growth of approximately 27%, driven by divergent performance patterns between the two reportable segments.
- Dollar Tree Segment Performance
- The Dollar Tree segment demonstrated consistent year-over-year growth throughout the analyzed period. Net sales rose from $10.14 billion in 2017 to $13.92 billion in 2022. The most significant expansion occurred between 2017 and 2018, followed by sustained annual increases generally ranging between 5% and 7% in subsequent years.
- Family Dollar Segment Performance
- The Family Dollar segment experienced more volatile growth trends. Following an initial increase between 2017 and 2018, sales remained largely stagnant from 2019 through 2020, with a marginal decline observed in the 2020 fiscal year. A notable spike in revenue occurred in 2021, with net sales increasing by approximately 10.3%, before decelerating to a growth rate of roughly 1.2% in 2022.
- Comparative Segment Contribution
- A shift in revenue composition is evident over the period. Although Family Dollar was the larger contributor to consolidated net sales in 2017, the Dollar Tree segment surpassed it in scale by 2018. By 2022, the Dollar Tree segment accounted for approximately 53% of total consolidated net sales, indicating that it became the primary driver of the company's overall revenue expansion.
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Operating income (loss)
Dollar Tree Inc., operating income (loss) by reportable segment
US$ in thousands
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | |
|---|---|---|---|---|---|---|
| Dollar Tree | 1,607,000) | 1,598,000) | 1,657,800) | 1,645,900) | 1,481,900) | 1,305,300) |
| Family Dollar | 543,100) | 655,600) | (81,000) | (2,320,000) | 517,200) | 399,500) |
| Corporate, support and Other | (338,700) | (365,700) | (314,600) | (265,400) | —) | —) |
| Consolidated | 1,811,400) | 1,887,900) | 1,262,200) | (939,500) | 1,999,100) | 1,704,800) |
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 consolidated operating income exhibits significant volatility over the six-year period, primarily driven by the performance of the Family Dollar segment. While the consolidated results reached a peak of approximately 1.99 billion USD in February 2018, a substantial decline occurred in February 2019, resulting in a consolidated operating loss of 939.5 million USD. Following this trough, a recovery trend emerged, with consolidated operating income returning to 1.81 billion USD by January 2022.
- Dollar Tree Segment Performance
- This segment demonstrates the most stability and consistent contribution to overall profitability. Operating income grew steadily from 1.31 billion USD in 2017 to a peak of 1.66 billion USD in 2020. A slight contraction occurred in 2021, followed by a stabilization at 1.61 billion USD in 2022, indicating a mature and resilient revenue stream that buffers the organization against losses in other segments.
- Family Dollar Segment Volatility
- The Family Dollar segment is characterized by extreme fluctuations. After an initial increase in operating income from 399.5 million USD in 2017 to 517.2 million USD in 2018, the segment experienced a severe collapse in February 2019, reporting an operating loss of 2.32 billion USD. This loss was the primary driver for the consolidated operating deficit in that period. However, a strong recovery trend followed, with the segment returning to profitability by January 2021 at 655.6 million USD, before dipping slightly to 543.1 million USD in 2022.
- Corporate, Support, and Other Expenses
- Operating losses associated with corporate and support functions became visible in the data starting in 2019. These losses have remained relatively consistent, ranging from a low of 265.4 million USD in 2019 to a peak of 365.7 million USD in 2021. This indicates a steady increase in overhead and support costs over time, though these costs were slightly reduced to 338.7 million USD in the final reported period.
- Consolidated Operating Trend
- The overall financial trajectory shows a resilient recovery pattern. The substantial operating loss in 2019 was effectively mitigated in subsequent years through the stabilization of the Dollar Tree segment and the successful turnaround of the Family Dollar segment. By January 2022, the consolidated operating income had recovered to levels closely approximating the 2018 peak, despite the persistent drag from corporate support expenses.
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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 | 316,000) | 302,300) | 277,700) | 254,000) | 251,800) | 241,300) |
| Family Dollar | 369,800) | 352,600) | 339,100) | 346,500) | 359,700) | 396,500) |
| Corporate, support and Other | 30,200) | 31,800) | 28,900) | 20,900) | —) | —) |
| Consolidated | 716,000) | 686,700) | 645,700) | 621,400) | 611,500) | 637,800) |
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).
Consolidated depreciation and amortization expenses exhibit an overall upward trajectory over the observed six-year period, increasing from $637.8 million in 2017 to $716.0 million in 2022. While a brief decline occurred in 2018, the total expenditure grew steadily from 2019 through 2022, reflecting an overall increase in the company's depreciable asset base.
- Dollar Tree Segment Trends
- The Dollar Tree segment demonstrates consistent and uninterrupted growth in depreciation and amortization expenses. Costs rose from $241.3 million in 2017 to $316.0 million in 2022, representing a total increase of approximately 31%. This steady climb suggests continuous capital investment and expansion of fixed assets within this specific business line.
- Family Dollar Segment Trends
- In contrast to the Dollar Tree segment, Family Dollar experienced a period of contraction followed by a recovery. Expenses declined steadily from a peak of $396.5 million in 2017 to a low of $339.1 million in 2020. A reversal of this trend occurred in 2021 and 2022, with expenses rising to $369.8 million. The initial decline may indicate asset disposals or a slowing rate of capital expenditure, while the recent increase suggests renewed investment.
- Corporate, Support, and Other Trends
- Expenses for corporate support and other items were not reported for the 2017 and 2018 fiscal years. From their first appearance in 2019 at $20.9 million, these expenses grew to a peak of $31.8 million in 2021 before slightly moderating to $30.2 million in 2022. This segment represents a smaller portion of the total consolidated expense but contributed to the overall upward trend in the latter half of the period.
- Consolidated Expense Composition
- The composition of consolidated depreciation and amortization shifted over time. In 2017, Family Dollar was the primary driver of these expenses; however, by 2022, the gap between the two main segments narrowed significantly. The growth in the Dollar Tree segment and the emergence of corporate support costs effectively offset the initial declines observed in the Family Dollar segment, resulting in a net increase in total annual expenses.
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Total assets
Dollar Tree Inc., total assets by reportable segment
US$ in thousands
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | |
|---|---|---|---|---|---|---|
| Dollar Tree | 9,358,400) | 8,669,300) | 7,694,000) | 3,992,600) | 4,113,400) | 3,705,500) |
| Family Dollar | 11,871,800) | 11,562,200) | 11,484,900) | 9,144,700) | 12,219,400) | 11,996,100) |
| Corporate, support and Other | 491,600) | 464,500) | 395,700) | 363,900) | —) | —) |
| Consolidated | 21,721,800) | 20,696,000) | 19,574,600) | 13,501,200) | 16,332,800) | 15,701,600) |
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).
Consolidated assets exhibited a volatile yet overall upward trajectory between January 2017 and January 2022. Total assets increased from 15.7 billion to 21.7 billion over the period, though the growth was interrupted by a significant contraction in February 2019, where assets fell to 13.5 billion before rebounding sharply in 2020.
- Dollar Tree Segment Growth
- A substantial expansion in asset value is evident within the Dollar Tree segment. Assets grew from 3.7 billion in 2017 to 9.4 billion in 2022. The most significant acceleration occurred between February 2019 and February 2020, during which the segment's assets nearly doubled from approximately 3.99 billion to 7.69 billion.
- Family Dollar Asset Volatility
- The Family Dollar segment remained the largest individual contributor to total assets throughout the analyzed timeframe, although it experienced notable instability. A sharp decline was observed in February 2019, with assets dropping to 9.1 billion from 12.2 billion the prior year. Following this dip, the segment recovered and grew steadily to reach 11.9 billion by January 2022.
- Corporate and Other Assets
- Reporting for the Corporate, support and Other category commenced in February 2019 with 363.9 million. This segment demonstrated a consistent and linear upward trend over the subsequent four years, ending the period at 491.6 million.
- Shift in Asset Distribution
- The proportional distribution of assets between the two primary reportable segments shifted significantly. In 2017, Family Dollar accounted for approximately 76% of consolidated assets. By January 2022, this proportion decreased to approximately 55%, indicating that the overall growth of the organization has been driven more heavily by the Dollar Tree segment in recent years.
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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 | 477,100) | 470,400) | 547,500) | 455,600) | 383,100) | 404,900) |
| Family Dollar | 498,900) | 362,100) | 425,200) | 251,000) | 249,100) | 159,800) |
| Corporate, support and Other | 45,200) | 66,300) | 62,100) | 110,500) | —) | —) |
| Consolidated | 1,021,200) | 898,800) | 1,034,800) | 817,100) | 632,200) | 564,700) |
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).
Consolidated additions to property, plant, and equipment exhibited a general upward trajectory between 2017 and 2022, growing from 564.7 million US dollars to 1.021 billion US dollars. A peak in capital expenditure occurred in 2020 at 1.035 billion US dollars, followed by a contraction in 2021 before rebounding to near-peak levels in 2022.
- Dollar Tree Segment Performance
- Capital additions within the Dollar Tree segment grew from 404.9 million US dollars in 2017 to a peak of 547.5 million US dollars in 2020. Following this peak, expenditures declined and stabilized, ending the period at 477.1 million US dollars in 2022. While this segment initially drove the majority of consolidated spending, its relative contribution decreased over time.
- Family Dollar Segment Performance
- The Family Dollar segment demonstrated the most aggressive growth in capital additions. Spending increased from 159.8 million US dollars in 2017 to 498.9 million US dollars in 2022. This represents a more than threefold increase over the analyzed period. By 2022, additions to property, plant, and equipment for Family Dollar exceeded those of the Dollar Tree segment for the first time.
- Corporate, Support, and Other Analysis
- Reported additions for corporate and support functions first appeared in the 2019 period at 110.5 million US dollars. Since then, a consistent downward trend is observed, with expenditures decreasing to 45.2 million US dollars by 2022.
- Consolidated Expenditure Distribution
- The distribution of capital investment shifted significantly over the six-year period. In 2017, the Dollar Tree segment accounted for approximately 71.7% of total additions. By 2022, this share decreased to approximately 46.7%, while the Family Dollar segment's share grew from 28.3% in 2017 to 48.9% in 2022, indicating a strategic pivot in resource allocation toward the Family Dollar segment.
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