Dollar Tree Inc (DLTR)
Fixed asset turnover
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 30,603,800 | 28,331,700 | 26,321,200 | 25,509,300 | 23,610,800 |
| Property, plant and equipment | US$ in thousands | 6,144,100 | 4,972,200 | 4,477,300 | 4,116,300 | 3,881,800 |
| Fixed asset turnover | 4.98 | 5.70 | 5.88 | 6.20 | 6.08 |
February 3, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $30,603,800K ÷ $6,144,100K
= 4.98
The fixed asset turnover ratio for Dollar Tree Inc has decreased steadily over the past five years, indicating a declining efficiency in utilizing its fixed assets to generate sales. The ratio decreased from 6.08 in Feb 1, 2020, to 4.98 in Feb 3, 2024. This suggests that Dollar Tree Inc is generating less revenue per dollar of investment in fixed assets over the years. This trend may be a cause for concern as it could indicate potential inefficiencies in the company's operations or underutilization of its fixed assets. Further investigation into the company's asset management practices and operational efficiency may be necessary to address this declining trend in fixed asset turnover.
Peer comparison
Feb 3, 2024