Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Dollar Tree Inc., liquidity ratios
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Dollar Tree Inc. current ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Dollar Tree Inc. quick ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Dollar Tree Inc. cash ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Current Ratio
Dollar Tree Inc., current ratio calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current assets | 5,609,200) | 5,050,800) | 4,269,400) | 4,293,300) | 4,576,300) | 3,938,000) | |
| Current liabilities | 4,176,600) | 3,730,300) | 3,546,500) | 2,095,700) | 2,859,100) | 2,105,900) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 1.34 | 1.35 | 1.20 | 2.05 | 1.60 | 1.87 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Costco Wholesale Corp. | 1.02 | 1.00 | 1.13 | 1.01 | — | — | |
| Dollar General Corp. | 1.05 | 1.21 | 1.14 | 1.55 | — | — | |
| Target Corp. | 0.99 | 1.03 | 0.89 | 0.83 | — | — | |
| Walmart Inc. | 0.93 | 0.97 | 0.79 | 0.80 | — | — | |
| Current Ratio, Sector | |||||||
| Consumer Staples Distribution & Retail | 0.96 | 1.00 | 0.89 | 0.86 | — | — | |
| Current Ratio, Industry | |||||||
| Consumer Staples | 0.89 | 0.93 | 0.93 | 0.84 | — | — | |
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
Current ratio = Current assets ÷ Current liabilities
= 5,609,200 ÷ 4,176,600 = 1.34
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Dollar Tree Inc. current ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Quick Ratio
Dollar Tree Inc., quick ratio calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cash and cash equivalents | 984,900) | 1,416,700) | 539,200) | 422,100) | 1,097,800) | 866,400) | |
| Short-term investments | —) | —) | —) | —) | —) | 4,000) | |
| Accounts receivable, net | —) | —) | 113,300) | 100,900) | 90,400) | 82,000) | |
| Total quick assets | 984,900) | 1,416,700) | 652,500) | 523,000) | 1,188,200) | 952,400) | |
| Current liabilities | 4,176,600) | 3,730,300) | 3,546,500) | 2,095,700) | 2,859,100) | 2,105,900) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 0.24 | 0.38 | 0.18 | 0.25 | 0.42 | 0.45 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Costco Wholesale Corp. | 0.42 | 0.47 | 0.60 | 0.47 | — | — | |
| Dollar General Corp. | 0.06 | 0.24 | 0.05 | 0.08 | — | — | |
| Target Corp. | 0.33 | 0.48 | 0.24 | 0.18 | — | — | |
| Walmart Inc. | 0.26 | 0.26 | 0.20 | 0.18 | — | — | |
| Quick Ratio, Sector | |||||||
| Consumer Staples Distribution & Retail | 0.30 | 0.33 | 0.28 | 0.23 | — | — | |
| Quick Ratio, Industry | |||||||
| Consumer Staples | 0.38 | 0.42 | 0.46 | 0.38 | — | — | |
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
Quick ratio = Total quick assets ÷ Current liabilities
= 984,900 ÷ 4,176,600 = 0.24
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Dollar Tree Inc. quick ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Cash Ratio
Dollar Tree Inc., cash ratio calculation, comparison to benchmarks
| Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cash and cash equivalents | 984,900) | 1,416,700) | 539,200) | 422,100) | 1,097,800) | 866,400) | |
| Short-term investments | —) | —) | —) | —) | —) | 4,000) | |
| Total cash assets | 984,900) | 1,416,700) | 539,200) | 422,100) | 1,097,800) | 870,400) | |
| Current liabilities | 4,176,600) | 3,730,300) | 3,546,500) | 2,095,700) | 2,859,100) | 2,105,900) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 0.24 | 0.38 | 0.15 | 0.20 | 0.38 | 0.41 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Costco Wholesale Corp. | 0.35 | 0.41 | 0.54 | 0.41 | — | — | |
| Dollar General Corp. | 0.06 | 0.24 | 0.05 | 0.08 | — | — | |
| Target Corp. | 0.27 | 0.42 | 0.18 | 0.10 | — | — | |
| Walmart Inc. | 0.17 | 0.19 | 0.12 | 0.10 | — | — | |
| Cash Ratio, Sector | |||||||
| Consumer Staples Distribution & Retail | 0.22 | 0.27 | 0.21 | 0.16 | — | — | |
| Cash Ratio, Industry | |||||||
| Consumer Staples | 0.24 | 0.30 | 0.34 | 0.25 | — | — | |
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
Cash ratio = Total cash assets ÷ Current liabilities
= 984,900 ÷ 4,176,600 = 0.24
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Dollar Tree Inc. cash ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |