Stock Analysis on Net

Dollar Tree Inc. (NASDAQ:DLTR)

This company has been moved to the archive! The financial data has not been updated since November 22, 2022.

Analysis of Short-term (Operating) Activity Ratios 

Microsoft Excel

Short-term Activity Ratios (Summary)

Dollar Tree Inc., short-term (operating) activity ratios

Microsoft Excel
Jan 29, 2022 Jan 30, 2021 Feb 1, 2020 Feb 2, 2019 Feb 3, 2018 Jan 28, 2017
Turnover Ratios
Inventory turnover 4.26 5.17 4.70 4.49 4.80 5.00
Receivables turnover 208.39 226.20 246.08 252.67
Payables turnover 9.86 11.97 12.40 11.21 12.96 12.79
Working capital turnover 18.37 19.32 32.66 10.39 12.95 11.31
Average No. Days
Average inventory processing period 86 71 78 81 76 73
Add: Average receivable collection period 2 2 1 1
Operating cycle 80 83 77 74
Less: Average payables payment period 37 30 29 33 28 29
Cash conversion cycle 51 50 49 45

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

Dollar Tree Inc., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
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

Dollar Tree Inc., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
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

Dollar Tree Inc., payables turnover calculation, comparison to benchmarks

Microsoft Excel
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

Dollar Tree Inc., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
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

Dollar Tree Inc., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
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

Dollar Tree Inc., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
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

Dollar Tree Inc., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
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

Dollar Tree Inc., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
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

Dollar Tree Inc., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
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.