Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Dollar Tree Inc., balance sheet: goodwill and intangible assets

US$ in thousands

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Goodwill	1,984,400)	1,984,400)	1,983,300)	2,296,600)	5,025,200)	5,023,500)
Trade name intangible asset	3,100,000)	3,100,000)	3,100,000)	3,100,000)	3,100,000)	3,100,000)
Goodwill and trade name intangible asset	5,084,400)	5,084,400)	5,083,300)	5,396,600)	8,125,200)	8,123,500)

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).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.
Trade name intangible asset	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.
Goodwill and trade name intangible asset	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.

Dollar Tree Inc., adjustments to financial statements

US$ in thousands

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Adjustment to Total Assets
Total assets (as reported)	21,721,800)	20,696,000)	19,574,600)	13,501,200)	16,332,800)	15,701,600)
Less: Goodwill	1,984,400)	1,984,400)	1,983,300)	2,296,600)	5,025,200)	5,023,500)
Total assets (adjusted)	19,737,400)	18,711,600)	17,591,300)	11,204,600)	11,307,600)	10,678,100)
Adjustment to Shareholders’ Equity
Shareholders’ equity (as reported)	7,718,500)	7,285,300)	6,254,800)	5,642,900)	7,182,300)	5,389,500)
Less: Goodwill	1,984,400)	1,984,400)	1,983,300)	2,296,600)	5,025,200)	5,023,500)
Shareholders’ equity (adjusted)	5,734,100)	5,300,900)	4,271,500)	3,346,300)	2,157,100)	366,000)
Adjustment to Net Income (loss)
Net income (loss) (as reported)	1,327,900)	1,341,900)	827,000)	(1,590,800)	1,714,300)	896,200)
Add: Goodwill impairment	—)	—)	313,000)	2,727,000)	—)	—)
Net income (loss) (adjusted)	1,327,900)	1,341,900)	1,140,000)	1,136,200)	1,714,300)	896,200)

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).

Dollar Tree Inc., Financial Data: Reported vs. Adjusted

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Dollar Tree Inc., adjusted financial ratios

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
Net Profit Margin
Reported net profit margin	5.05%	5.26%	3.50%	-6.97%	7.71%	4.33%
Adjusted net profit margin	5.05%	5.26%	4.83%	4.98%	7.71%	4.33%
Total Asset Turnover
Reported total asset turnover	1.21	1.23	1.21	1.69	1.36	1.32
Adjusted total asset turnover	1.33	1.36	1.34	2.04	1.97	1.94
Financial Leverage
Reported financial leverage	2.81	2.84	3.13	2.39	2.27	2.91
Adjusted financial leverage	3.44	3.53	4.12	3.35	5.24	29.18
Return on Equity (ROE)
Reported ROE	17.20%	18.42%	13.22%	-28.19%	23.87%	16.63%
Adjusted ROE	23.16%	25.31%	26.69%	33.95%	79.47%	244.86%
Return on Assets (ROA)
Reported ROA	6.11%	6.48%	4.22%	-11.78%	10.50%	5.71%
Adjusted ROA	6.73%	7.17%	6.48%	10.14%	15.16%	8.39%

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).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Dollar Tree Inc. adjusted net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Dollar Tree Inc. adjusted total asset turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Dollar Tree Inc. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Dollar Tree Inc. adjusted ROE deteriorated from 2020 to 2021 and from 2021 to 2022.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Dollar Tree Inc. adjusted ROA improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.

Dollar Tree Inc., Financial Ratios: Reported vs. Adjusted

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	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
As Reported
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)
Net sales	26,309,800)	25,508,400)	23,610,800)	22,823,300)	22,245,500)	20,719,200)
Profitability Ratio
Net profit margin¹	5.05%	5.26%	3.50%	-6.97%	7.71%	4.33%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net income (loss)	1,327,900)	1,341,900)	1,140,000)	1,136,200)	1,714,300)	896,200)
Net sales	26,309,800)	25,508,400)	23,610,800)	22,823,300)	22,245,500)	20,719,200)
Profitability Ratio
Adjusted net profit margin²	5.05%	5.26%	4.83%	4.98%	7.71%	4.33%

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).

2022 Calculations

¹ Net profit margin = 100 × Net income (loss) ÷ Net sales
= 100 × 1,327,900 ÷ 26,309,800 = 5.05%

² Adjusted net profit margin = 100 × Adjusted net income (loss) ÷ Net sales
= 100 × 1,327,900 ÷ 26,309,800 = 5.05%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Dollar Tree Inc. adjusted net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net sales	26,309,800)	25,508,400)	23,610,800)	22,823,300)	22,245,500)	20,719,200)
Total assets	21,721,800)	20,696,000)	19,574,600)	13,501,200)	16,332,800)	15,701,600)
Activity Ratio
Total asset turnover¹	1.21	1.23	1.21	1.69	1.36	1.32
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net sales	26,309,800)	25,508,400)	23,610,800)	22,823,300)	22,245,500)	20,719,200)
Adjusted total assets	19,737,400)	18,711,600)	17,591,300)	11,204,600)	11,307,600)	10,678,100)
Activity Ratio
Adjusted total asset turnover²	1.33	1.36	1.34	2.04	1.97	1.94

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).

2022 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 26,309,800 ÷ 21,721,800 = 1.21

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 26,309,800 ÷ 19,737,400 = 1.33

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Dollar Tree Inc. adjusted total asset turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
As Reported
Selected Financial Data (US$ in thousands)
Total assets	21,721,800)	20,696,000)	19,574,600)	13,501,200)	16,332,800)	15,701,600)
Shareholders’ equity	7,718,500)	7,285,300)	6,254,800)	5,642,900)	7,182,300)	5,389,500)
Solvency Ratio
Financial leverage¹	2.81	2.84	3.13	2.39	2.27	2.91
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets	19,737,400)	18,711,600)	17,591,300)	11,204,600)	11,307,600)	10,678,100)
Adjusted shareholders’ equity	5,734,100)	5,300,900)	4,271,500)	3,346,300)	2,157,100)	366,000)
Solvency Ratio
Adjusted financial leverage²	3.44	3.53	4.12	3.35	5.24	29.18

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).

2022 Calculations

¹ Financial leverage = Total assets ÷ Shareholders’ equity
= 21,721,800 ÷ 7,718,500 = 2.81

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 19,737,400 ÷ 5,734,100 = 3.44

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Dollar Tree Inc. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
As Reported
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)
Shareholders’ equity	7,718,500)	7,285,300)	6,254,800)	5,642,900)	7,182,300)	5,389,500)
Profitability Ratio
ROE¹	17.20%	18.42%	13.22%	-28.19%	23.87%	16.63%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net income (loss)	1,327,900)	1,341,900)	1,140,000)	1,136,200)	1,714,300)	896,200)
Adjusted shareholders’ equity	5,734,100)	5,300,900)	4,271,500)	3,346,300)	2,157,100)	366,000)
Profitability Ratio
Adjusted ROE²	23.16%	25.31%	26.69%	33.95%	79.47%	244.86%

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).

2022 Calculations

¹ ROE = 100 × Net income (loss) ÷ Shareholders’ equity
= 100 × 1,327,900 ÷ 7,718,500 = 17.20%

² Adjusted ROE = 100 × Adjusted net income (loss) ÷ Adjusted shareholders’ equity
= 100 × 1,327,900 ÷ 5,734,100 = 23.16%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Dollar Tree Inc. adjusted ROE deteriorated from 2020 to 2021 and from 2021 to 2022.

	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018	Jan 28, 2017
As Reported
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)
Total assets	21,721,800)	20,696,000)	19,574,600)	13,501,200)	16,332,800)	15,701,600)
Profitability Ratio
ROA¹	6.11%	6.48%	4.22%	-11.78%	10.50%	5.71%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net income (loss)	1,327,900)	1,341,900)	1,140,000)	1,136,200)	1,714,300)	896,200)
Adjusted total assets	19,737,400)	18,711,600)	17,591,300)	11,204,600)	11,307,600)	10,678,100)
Profitability Ratio
Adjusted ROA²	6.73%	7.17%	6.48%	10.14%	15.16%	8.39%

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).

2022 Calculations

¹ ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 1,327,900 ÷ 21,721,800 = 6.11%

² Adjusted ROA = 100 × Adjusted net income (loss) ÷ Adjusted total assets
= 100 × 1,327,900 ÷ 19,737,400 = 6.73%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Dollar Tree Inc. adjusted ROA improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.

Dollar Tree Inc. (NASDAQ:DLTR)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Dollar Tree Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Dollar Tree Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)