Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
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).
Short-term activity ratio | Description | The company |
---|---|---|
Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Dollar Tree Inc. inventory turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Dollar Tree Inc. payables turnover ratio decreased from 2020 to 2021 and from 2021 to 2022. |
Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Dollar Tree Inc. working capital turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Short-term activity ratio | Description | The company |
---|---|---|
Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Dollar Tree Inc. number of days of inventory outstanding improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Dollar Tree Inc. number of days of payables outstanding increased from 2020 to 2021 and from 2021 to 2022. |
Inventory Turnover
Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||||
Cost of sales | 18,583,900) | 17,721,000) | 16,570,100) | 15,875,800) | 15,223,600) | 14,324,500) | |
Merchandise inventories | 4,367,300) | 3,427,000) | 3,522,000) | 3,536,000) | 3,169,300) | 2,865,800) | |
Short-term Activity Ratio | |||||||
Inventory turnover1 | 4.26 | 5.17 | 4.70 | 4.49 | 4.80 | 5.00 | |
Benchmarks | |||||||
Inventory Turnover, Competitors2 | |||||||
Costco Wholesale Corp. | 11.13 | 12.01 | 11.84 | 11.66 | — | — | |
Dollar General Corp. | 4.17 | 4.39 | 4.12 | 4.35 | — | — | |
Target Corp. | 5.39 | 6.21 | 6.10 | 5.61 | — | — | |
Walmart Inc. | 7.59 | 9.35 | 8.88 | 8.70 | — | — | |
Inventory Turnover, Sector | |||||||
Consumer Staples Distribution & Retail | 7.74 | 9.06 | 8.72 | 8.51 | — | — | |
Inventory Turnover, Industry | |||||||
Consumer Staples | 6.96 | 7.97 | 7.50 | 7.42 | — | — |
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
Inventory turnover = Cost of sales ÷ Merchandise inventories
= 18,583,900 ÷ 4,367,300 = 4.26
2 Click competitor name to see calculations.
Short-term activity ratio | Description | The company |
---|---|---|
Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Dollar Tree Inc. inventory turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Receivables Turnover
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 | 26,309,800) | 25,508,400) | 23,610,800) | 22,823,300) | 22,245,500) | 20,719,200) | |
Accounts receivable, net | —) | —) | 113,300) | 100,900) | 90,400) | 82,000) | |
Short-term Activity Ratio | |||||||
Receivables turnover1 | — | — | 208.39 | 226.20 | 246.08 | 252.67 | |
Benchmarks | |||||||
Receivables Turnover, Competitors2 | |||||||
Costco Wholesale Corp. | 99.39 | 106.52 | 105.30 | 97.30 | — | — | |
Dollar General Corp. | — | — | — | — | — | — | |
Target Corp. | 125.28 | 146.43 | 154.88 | 117.77 | — | — | |
Walmart Inc. | 68.57 | 85.21 | 82.74 | 81.22 | — | — | |
Receivables Turnover, Sector | |||||||
Consumer Staples Distribution & Retail | 81.84 | 97.59 | 94.58 | 89.91 | — | — | |
Receivables Turnover, Industry | |||||||
Consumer Staples | 35.12 | 38.75 | 37.54 | 34.71 | — | — |
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
Receivables turnover = Net sales ÷ Accounts receivable, net
= 26,309,800 ÷ 0 = —
2 Click competitor name to see calculations.
Payables Turnover
Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in thousands) | |||||||
Cost of sales | 18,583,900) | 17,721,000) | 16,570,100) | 15,875,800) | 15,223,600) | 14,324,500) | |
Accounts payable | 1,884,200) | 1,480,500) | 1,336,500) | 1,416,400) | 1,174,800) | 1,119,600) | |
Short-term Activity Ratio | |||||||
Payables turnover1 | 9.86 | 11.97 | 12.40 | 11.21 | 12.96 | 12.79 | |
Benchmarks | |||||||
Payables Turnover, Competitors2 | |||||||
Costco Wholesale Corp. | 11.17 | 10.49 | 10.23 | 11.38 | — | — | |
Dollar General Corp. | 6.26 | 6.37 | 6.73 | 7.47 | — | — | |
Target Corp. | 4.84 | 5.15 | 5.53 | 5.46 | — | — | |
Walmart Inc. | 7.76 | 8.55 | 8.40 | 8.19 | — | — | |
Payables Turnover, Sector | |||||||
Consumer Staples Distribution & Retail | 7.87 | 8.31 | 8.30 | 8.31 | — | — | |
Payables Turnover, Industry | |||||||
Consumer Staples | 6.61 | 6.91 | 7.01 | 7.11 | — | — |
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
Payables turnover = Cost of sales ÷ Accounts payable
= 18,583,900 ÷ 1,884,200 = 9.86
2 Click competitor name to see calculations.
Short-term activity ratio | Description | The company |
---|---|---|
Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Dollar Tree Inc. payables turnover ratio decreased from 2020 to 2021 and from 2021 to 2022. |
Working Capital Turnover
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) | |
Less: Current liabilities | 4,176,600) | 3,730,300) | 3,546,500) | 2,095,700) | 2,859,100) | 2,105,900) | |
Working capital | 1,432,600) | 1,320,500) | 722,900) | 2,197,600) | 1,717,200) | 1,832,100) | |
Net sales | 26,309,800) | 25,508,400) | 23,610,800) | 22,823,300) | 22,245,500) | 20,719,200) | |
Short-term Activity Ratio | |||||||
Working capital turnover1 | 18.37 | 19.32 | 32.66 | 10.39 | 12.95 | 11.31 | |
Benchmarks | |||||||
Working Capital Turnover, Competitors2 | |||||||
Costco Wholesale Corp. | 319.10 | 3,000.81 | 49.82 | 602.22 | — | — | |
Dollar General Corp. | 105.46 | 28.04 | 43.75 | 15.56 | — | — | |
Target Corp. | — | 146.43 | — | — | — | — | |
Walmart Inc. | — | — | — | — | — | — | |
Working Capital Turnover, Sector | |||||||
Consumer Staples Distribution & Retail | — | — | — | — | — | — | |
Working Capital Turnover, Industry | |||||||
Consumer Staples | — | — | — | — | — | — |
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
Working capital turnover = Net sales ÷ Working capital
= 26,309,800 ÷ 1,432,600 = 18.37
2 Click competitor name to see calculations.
Short-term activity ratio | Description | The company |
---|---|---|
Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Dollar Tree Inc. working capital turnover ratio deteriorated from 2020 to 2021 and from 2021 to 2022. |
Average Inventory Processing Period
Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||
Inventory turnover | 4.26 | 5.17 | 4.70 | 4.49 | 4.80 | 5.00 | |
Short-term Activity Ratio (no. days) | |||||||
Average inventory processing period1 | 86 | 71 | 78 | 81 | 76 | 73 | |
Benchmarks (no. days) | |||||||
Average Inventory Processing Period, Competitors2 | |||||||
Costco Wholesale Corp. | 33 | 30 | 31 | 31 | — | — | |
Dollar General Corp. | 88 | 83 | 89 | 84 | — | — | |
Target Corp. | 68 | 59 | 60 | 65 | — | — | |
Walmart Inc. | 48 | 39 | 41 | 42 | — | — | |
Average Inventory Processing Period, Sector | |||||||
Consumer Staples Distribution & Retail | 47 | 40 | 42 | 43 | — | — | |
Average Inventory Processing Period, Industry | |||||||
Consumer Staples | 52 | 46 | 49 | 49 | — | — |
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 4.26 = 86
2 Click competitor name to see calculations.
Short-term activity ratio | Description | The company |
---|---|---|
Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Dollar Tree Inc. number of days of inventory outstanding improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Average Receivable Collection Period
Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||
Receivables turnover | — | — | 208.39 | 226.20 | 246.08 | 252.67 | |
Short-term Activity Ratio (no. days) | |||||||
Average receivable collection period1 | — | — | 2 | 2 | 1 | 1 | |
Benchmarks (no. days) | |||||||
Average Receivable Collection Period, Competitors2 | |||||||
Costco Wholesale Corp. | 4 | 3 | 3 | 4 | — | — | |
Dollar General Corp. | — | — | — | — | — | — | |
Target Corp. | 3 | 2 | 2 | 3 | — | — | |
Walmart Inc. | 5 | 4 | 4 | 4 | — | — | |
Average Receivable Collection Period, Sector | |||||||
Consumer Staples Distribution & Retail | 4 | 4 | 4 | 4 | — | — | |
Average Receivable Collection Period, Industry | |||||||
Consumer Staples | 10 | 9 | 10 | 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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ — = —
2 Click competitor name to see calculations.
Operating Cycle
Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||
Average inventory processing period | 86 | 71 | 78 | 81 | 76 | 73 | |
Average receivable collection period | — | — | 2 | 2 | 1 | 1 | |
Short-term Activity Ratio | |||||||
Operating cycle1 | — | — | 80 | 83 | 77 | 74 | |
Benchmarks | |||||||
Operating Cycle, Competitors2 | |||||||
Costco Wholesale Corp. | 37 | 33 | 34 | 35 | — | — | |
Dollar General Corp. | — | — | — | — | — | — | |
Target Corp. | 71 | 61 | 62 | 68 | — | — | |
Walmart Inc. | 53 | 43 | 45 | 46 | — | — | |
Operating Cycle, Sector | |||||||
Consumer Staples Distribution & Retail | 51 | 44 | 46 | 47 | — | — | |
Operating Cycle, Industry | |||||||
Consumer Staples | 62 | 55 | 59 | 60 | — | — |
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
Operating cycle = Average inventory processing period + Average receivable collection period
= 86 + — = —
2 Click competitor name to see calculations.
Average Payables Payment Period
Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||
Payables turnover | 9.86 | 11.97 | 12.40 | 11.21 | 12.96 | 12.79 | |
Short-term Activity Ratio (no. days) | |||||||
Average payables payment period1 | 37 | 30 | 29 | 33 | 28 | 29 | |
Benchmarks (no. days) | |||||||
Average Payables Payment Period, Competitors2 | |||||||
Costco Wholesale Corp. | 33 | 35 | 36 | 32 | — | — | |
Dollar General Corp. | 58 | 57 | 54 | 49 | — | — | |
Target Corp. | 75 | 71 | 66 | 67 | — | — | |
Walmart Inc. | 47 | 43 | 43 | 45 | — | — | |
Average Payables Payment Period, Sector | |||||||
Consumer Staples Distribution & Retail | 46 | 44 | 44 | 44 | — | — | |
Average Payables Payment Period, Industry | |||||||
Consumer Staples | 55 | 53 | 52 | 51 | — | — |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 9.86 = 37
2 Click competitor name to see calculations.
Short-term activity ratio | Description | The company |
---|---|---|
Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Dollar Tree Inc. number of days of payables outstanding increased from 2020 to 2021 and from 2021 to 2022. |
Cash Conversion Cycle
Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | Feb 2, 2019 | Feb 3, 2018 | Jan 28, 2017 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data | |||||||
Average inventory processing period | 86 | 71 | 78 | 81 | 76 | 73 | |
Average receivable collection period | — | — | 2 | 2 | 1 | 1 | |
Average payables payment period | 37 | 30 | 29 | 33 | 28 | 29 | |
Short-term Activity Ratio | |||||||
Cash conversion cycle1 | — | — | 51 | 50 | 49 | 45 | |
Benchmarks | |||||||
Cash Conversion Cycle, Competitors2 | |||||||
Costco Wholesale Corp. | 4 | -2 | -2 | 3 | — | — | |
Dollar General Corp. | — | — | — | — | — | — | |
Target Corp. | -4 | -10 | -4 | 1 | — | — | |
Walmart Inc. | 6 | 0 | 2 | 1 | — | — | |
Cash Conversion Cycle, Sector | |||||||
Consumer Staples Distribution & Retail | 5 | 0 | 2 | 3 | — | — | |
Cash Conversion Cycle, Industry | |||||||
Consumer Staples | 7 | 2 | 7 | 9 | — | — |
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 conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 86 + — – 37 = —
2 Click competitor name to see calculations.