Dollar Tree Inc., balance sheet: debt

US$ in thousands

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Current portion of long-term debt	—)	—)	250,000)	—)	915,900)	152,100)
Long-term debt, net, excluding current portion	3,417,000)	3,226,200)	3,522,200)	4,265,300)	4,762,100)	6,169,700)
Total long-term debt (carrying amount)	3,417,000)	3,226,200)	3,772,200)	4,265,300)	5,678,000)	6,321,800)

Download chart

Debt item	Description	The company
Total long-term debt (carrying amount)	Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations.	Dollar Tree Inc. total debt decreased from 2020 to 2021 but then slightly increased from 2021 to 2022.

	Jan 29, 2022
Selected Financial Data (US$ in thousands)
Senior Notes	3,558,500)
Revolving Credit Facility	6,400)
Term Loans	—)
Forgivable Promissory Note	—)
Total long-term debt (fair value)	3,564,900)
Financial Ratio
Debt, fair value to carrying amount ratio	1.04

Weighted-average interest rate on long-term debt: 3.68%

Interest rate	Debt amount¹	Interest rate × Debt amount
1.28%	6,400)	82)
4.00%	1,004,000)	40,160)
4.20%	1,258,100)	52,840)
2.65%	809,500)	21,452)
3.38%	405,000)	13,669)
Total	3,483,000)	128,203)
3.68%

¹ US$ in thousands

² Weighted-average interest rate = 100 × 128,203 ÷ 3,483,000 = 3.68%

Dollar Tree Inc., interest costs incurred

US$ in thousands

12 months ended:	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Interest expense, net	178,900)	147,300)	162,100)	370,000)	301,800)	375,500)
Capitalized interest	1,100)	3,200)	2,400)	4,200)	2,300)	2,400)
Interest costs incurred	180,000)	150,500)	164,500)	374,200)	304,100)	377,900)

Download chart

Debt item	Description	The company
Interest expense, net	Amount of the cost of borrowed funds accounted for as interest expense for debt.	Dollar Tree Inc. interest expense, net decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.
Capitalized interest	Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred.	Dollar Tree Inc. capitalized interest increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
Interest costs incurred	Total interest costs incurred during the period and either capitalized or charged against earnings.	Dollar Tree Inc. interest costs incurred decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Selected Financial Data (US$ in thousands)
Net income (loss)	1,327,900)	1,341,900)	827,000)	(1,590,800)	1,714,300)	896,200)
Add: Income tax expense	304,300)	397,900)	271,700)	281,800)	(10,300)	433,200)
Add: Interest expense, net	178,900)	147,300)	162,100)	370,000)	301,800)	375,500)
Earnings before interest and tax (EBIT)	1,811,100)	1,887,100)	1,260,800)	(939,000)	2,005,800)	1,704,900)

Interest costs incurred	180,000)	150,500)	164,500)	374,200)	304,100)	377,900)
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)¹	10.12	12.81	7.78	-2.54	6.65	4.54
Adjusted interest coverage ratio (with capitalized interest)²	10.06	12.54	7.66	-2.51	6.60	4.51

2022 Calculations

¹ Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense, net
= 1,811,100 ÷ 178,900 = 10.12

² Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= 1,811,100 ÷ 180,000 = 10.06

Download chart

Solvency ratio	Description	The company
Adjusted interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest).	Dollar Tree Inc. adjusted interest coverage ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.

Dollar Tree Inc. (NASDAQ:DLTR)

Analysis of Debt