Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Dollar Tree Inc., solvency 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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Dollar Tree Inc. debt to equity ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Dollar Tree Inc. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Dollar Tree Inc. debt to capital ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Dollar Tree Inc. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Dollar Tree Inc. debt to assets ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Dollar Tree Inc. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Dollar Tree Inc. financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Dollar Tree Inc. interest coverage ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Dollar Tree Inc. fixed charge coverage ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Debt to Equity
Dollar Tree Inc., debt to equity 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 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 debt | 3,417,000) | 3,226,200) | 3,772,200) | 4,265,300) | 5,678,000) | 6,321,800) | |
| Shareholders’ equity | 7,718,500) | 7,285,300) | 6,254,800) | 5,642,900) | 7,182,300) | 5,389,500) | |
| Solvency Ratio | |||||||
| Debt to equity1 | 0.44 | 0.44 | 0.60 | 0.76 | 0.79 | 1.17 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Costco Wholesale Corp. | 0.40 | 0.49 | 0.45 | 0.48 | — | — | |
| Dollar General Corp. | 0.67 | 0.62 | 0.43 | 0.45 | — | — | |
| Target Corp. | 1.07 | 0.88 | 0.97 | 1.00 | — | — | |
| Walmart Inc. | 0.51 | 0.60 | 0.73 | 0.80 | — | — | |
| Debt to Equity, Sector | |||||||
| Consumer Staples Distribution & Retail | 0.56 | 0.62 | 0.69 | 0.75 | — | — | |
| Debt to Equity, Industry | |||||||
| Consumer Staples | 1.26 | 1.27 | 1.44 | 1.34 | — | — | |
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
Debt to equity = Total debt ÷ Shareholders’ equity
= 3,417,000 ÷ 7,718,500 = 0.44
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Dollar Tree Inc. debt to equity ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Equity (including Operating Lease Liability)
Dollar Tree Inc., debt to equity (including operating lease liability) 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 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 debt | 3,417,000) | 3,226,200) | 3,772,200) | 4,265,300) | 5,678,000) | 6,321,800) | |
| Current portion of operating lease liabilities | 1,407,800) | 1,348,200) | 1,279,300) | —) | —) | —) | |
| Operating lease liabilities, long-term | 5,145,500) | 5,065,500) | 4,979,500) | —) | —) | —) | |
| Total debt (including operating lease liability) | 9,970,300) | 9,639,900) | 10,031,000) | 4,265,300) | 5,678,000) | 6,321,800) | |
| Shareholders’ equity | 7,718,500) | 7,285,300) | 6,254,800) | 5,642,900) | 7,182,300) | 5,389,500) | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | 1.29 | 1.32 | 1.60 | 0.76 | 0.79 | 1.17 | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Costco Wholesale Corp. | 0.53 | 0.65 | 0.61 | 0.48 | — | — | |
| Dollar General Corp. | 2.28 | 2.04 | 1.75 | 0.45 | — | — | |
| Target Corp. | 1.28 | 1.05 | 1.18 | 1.19 | — | — | |
| Walmart Inc. | 0.69 | 0.78 | 0.97 | 0.80 | — | — | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Consumer Staples Distribution & Retail | 0.80 | 0.86 | 0.98 | 0.77 | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Consumer Staples | 1.43 | 1.44 | 1.64 | 1.38 | — | — | |
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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= 9,970,300 ÷ 7,718,500 = 1.29
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Dollar Tree Inc. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Capital
Dollar Tree Inc., debt to capital 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 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 debt | 3,417,000) | 3,226,200) | 3,772,200) | 4,265,300) | 5,678,000) | 6,321,800) | |
| Shareholders’ equity | 7,718,500) | 7,285,300) | 6,254,800) | 5,642,900) | 7,182,300) | 5,389,500) | |
| Total capital | 11,135,500) | 10,511,500) | 10,027,000) | 9,908,200) | 12,860,300) | 11,711,300) | |
| Solvency Ratio | |||||||
| Debt to capital1 | 0.31 | 0.31 | 0.38 | 0.43 | 0.44 | 0.54 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Costco Wholesale Corp. | 0.28 | 0.33 | 0.31 | 0.32 | — | — | |
| Dollar General Corp. | 0.40 | 0.38 | 0.30 | 0.31 | — | — | |
| Target Corp. | 0.52 | 0.47 | 0.49 | 0.50 | — | — | |
| Walmart Inc. | 0.34 | 0.38 | 0.42 | 0.44 | — | — | |
| Debt to Capital, Sector | |||||||
| Consumer Staples Distribution & Retail | 0.36 | 0.38 | 0.41 | 0.43 | — | — | |
| Debt to Capital, Industry | |||||||
| Consumer Staples | 0.56 | 0.56 | 0.59 | 0.57 | — | — | |
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
Debt to capital = Total debt ÷ Total capital
= 3,417,000 ÷ 11,135,500 = 0.31
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Dollar Tree Inc. debt to capital ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Capital (including Operating Lease Liability)
Dollar Tree Inc., debt to capital (including operating lease liability) 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 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 debt | 3,417,000) | 3,226,200) | 3,772,200) | 4,265,300) | 5,678,000) | 6,321,800) | |
| Current portion of operating lease liabilities | 1,407,800) | 1,348,200) | 1,279,300) | —) | —) | —) | |
| Operating lease liabilities, long-term | 5,145,500) | 5,065,500) | 4,979,500) | —) | —) | —) | |
| Total debt (including operating lease liability) | 9,970,300) | 9,639,900) | 10,031,000) | 4,265,300) | 5,678,000) | 6,321,800) | |
| Shareholders’ equity | 7,718,500) | 7,285,300) | 6,254,800) | 5,642,900) | 7,182,300) | 5,389,500) | |
| Total capital (including operating lease liability) | 17,688,800) | 16,925,200) | 16,285,800) | 9,908,200) | 12,860,300) | 11,711,300) | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.56 | 0.57 | 0.62 | 0.43 | 0.44 | 0.54 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Costco Wholesale Corp. | 0.35 | 0.39 | 0.38 | 0.32 | — | — | |
| Dollar General Corp. | 0.69 | 0.67 | 0.64 | 0.31 | — | — | |
| Target Corp. | 0.56 | 0.51 | 0.54 | 0.54 | — | — | |
| Walmart Inc. | 0.41 | 0.44 | 0.49 | 0.44 | — | — | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Consumer Staples Distribution & Retail | 0.45 | 0.46 | 0.49 | 0.44 | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Consumer Staples | 0.59 | 0.59 | 0.62 | 0.58 | — | — | |
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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 9,970,300 ÷ 17,688,800 = 0.56
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Dollar Tree Inc. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Assets
Dollar Tree Inc., debt to assets 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 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 debt | 3,417,000) | 3,226,200) | 3,772,200) | 4,265,300) | 5,678,000) | 6,321,800) | |
| Total assets | 21,721,800) | 20,696,000) | 19,574,600) | 13,501,200) | 16,332,800) | 15,701,600) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.16 | 0.16 | 0.19 | 0.32 | 0.35 | 0.40 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Costco Wholesale Corp. | 0.13 | 0.14 | 0.15 | 0.16 | — | — | |
| Dollar General Corp. | 0.16 | 0.16 | 0.13 | 0.22 | — | — | |
| Target Corp. | 0.25 | 0.25 | 0.27 | 0.27 | — | — | |
| Walmart Inc. | 0.17 | 0.19 | 0.23 | 0.26 | — | — | |
| Debt to Assets, Sector | |||||||
| Consumer Staples Distribution & Retail | 0.18 | 0.19 | 0.22 | 0.25 | — | — | |
| Debt to Assets, Industry | |||||||
| Consumer Staples | 0.31 | 0.32 | 0.35 | 0.35 | — | — | |
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
Debt to assets = Total debt ÷ Total assets
= 3,417,000 ÷ 21,721,800 = 0.16
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Dollar Tree Inc. debt to assets ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Debt to Assets (including Operating Lease Liability)
Dollar Tree Inc., debt to assets (including operating lease liability) 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 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 debt | 3,417,000) | 3,226,200) | 3,772,200) | 4,265,300) | 5,678,000) | 6,321,800) | |
| Current portion of operating lease liabilities | 1,407,800) | 1,348,200) | 1,279,300) | —) | —) | —) | |
| Operating lease liabilities, long-term | 5,145,500) | 5,065,500) | 4,979,500) | —) | —) | —) | |
| Total debt (including operating lease liability) | 9,970,300) | 9,639,900) | 10,031,000) | 4,265,300) | 5,678,000) | 6,321,800) | |
| Total assets | 21,721,800) | 20,696,000) | 19,574,600) | 13,501,200) | 16,332,800) | 15,701,600) | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.46 | 0.47 | 0.51 | 0.32 | 0.35 | 0.40 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Costco Wholesale Corp. | 0.17 | 0.19 | 0.20 | 0.16 | — | — | |
| Dollar General Corp. | 0.54 | 0.53 | 0.51 | 0.22 | — | — | |
| Target Corp. | 0.31 | 0.29 | 0.33 | 0.33 | — | — | |
| Walmart Inc. | 0.23 | 0.25 | 0.31 | 0.26 | — | — | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Consumer Staples Distribution & Retail | 0.25 | 0.27 | 0.31 | 0.26 | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Consumer Staples | 0.36 | 0.36 | 0.40 | 0.36 | — | — | |
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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 9,970,300 ÷ 21,721,800 = 0.46
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Dollar Tree Inc. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
Financial Leverage
Dollar Tree Inc., financial leverage 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) | |||||||
| 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 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Costco Wholesale Corp. | 3.11 | 3.37 | 3.04 | 2.98 | — | — | |
| Dollar General Corp. | 4.20 | 3.88 | 3.41 | 2.06 | — | — | |
| Target Corp. | 4.20 | 3.55 | 3.62 | 3.65 | — | — | |
| Walmart Inc. | 2.94 | 3.12 | 3.17 | 3.02 | — | — | |
| Financial Leverage, Sector | |||||||
| Consumer Staples Distribution & Retail | 3.16 | 3.25 | 3.21 | 3.03 | — | — | |
| Financial Leverage, Industry | |||||||
| Consumer Staples | 3.99 | 4.01 | 4.15 | 3.82 | — | — | |
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
Financial leverage = Total assets ÷ Shareholders’ equity
= 21,721,800 ÷ 7,718,500 = 2.81
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Dollar Tree Inc. financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022. |
Interest Coverage
Dollar Tree Inc., interest coverage 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) | |||||||
| 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) | |
| Solvency Ratio | |||||||
| Interest coverage1 | 10.12 | 12.81 | 7.78 | -2.54 | 6.65 | 4.54 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Costco Wholesale Corp. | 50.62 | 40.06 | 34.54 | 32.77 | — | — | |
| Dollar General Corp. | 20.45 | 23.64 | 22.89 | 21.18 | — | — | |
| Target Corp. | 22.16 | 6.68 | 9.78 | 8.97 | — | — | |
| Walmart Inc. | 10.38 | 9.88 | 8.74 | 5.88 | — | — | |
| Interest Coverage, Sector | |||||||
| Consumer Staples Distribution & Retail | 15.10 | 11.02 | 10.55 | 8.17 | — | — | |
| Interest Coverage, Industry | |||||||
| Consumer Staples | 14.88 | 10.59 | 11.00 | 8.58 | — | — | |
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
Interest coverage = EBIT ÷ Interest expense
= 1,811,100 ÷ 178,900 = 10.12
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Dollar Tree Inc. interest coverage ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Fixed Charge Coverage
Dollar Tree Inc., fixed charge coverage 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) | |||||||
| 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) | |
| Add: Operating lease cost | 1,602,800) | 1,551,200) | 1,520,500) | 1,404,000) | 1,343,500) | 1,276,600) | |
| Earnings before fixed charges and tax | 3,413,900) | 3,438,300) | 2,781,300) | 465,000) | 3,349,300) | 2,981,500) | |
| Interest expense, net | 178,900) | 147,300) | 162,100) | 370,000) | 301,800) | 375,500) | |
| Operating lease cost | 1,602,800) | 1,551,200) | 1,520,500) | 1,404,000) | 1,343,500) | 1,276,600) | |
| Fixed charges | 1,781,700) | 1,698,500) | 1,682,600) | 1,774,000) | 1,645,300) | 1,652,100) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 1.92 | 2.02 | 1.65 | 0.26 | 2.04 | 1.80 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Costco Wholesale Corp. | 18.23 | 15.30 | 14.03 | 12.40 | — | — | |
| Dollar General Corp. | 2.86 | 3.22 | 2.61 | 2.60 | — | — | |
| Target Corp. | 12.02 | 5.24 | 6.48 | 6.16 | — | — | |
| Walmart Inc. | 5.38 | 5.16 | 4.82 | 3.14 | — | — | |
| Fixed Charge Coverage, Sector | |||||||
| Consumer Staples Distribution & Retail | 6.36 | 5.39 | 5.08 | 3.83 | — | — | |
| Fixed Charge Coverage, Industry | |||||||
| Consumer Staples | 8.29 | 6.71 | 6.68 | 5.11 | — | — | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 3,413,900 ÷ 1,781,700 = 1.92
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Dollar Tree Inc. fixed charge coverage ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |