Dollar Tree Inc (DLTR)

Fixed asset turnover

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Feb 3, 2024	Jan 31, 2024	Oct 31, 2023	Oct 28, 2023	Jul 31, 2023	Jul 29, 2023	Apr 30, 2023	Apr 29, 2023	Jan 31, 2023	Jan 28, 2023	Oct 31, 2022	Oct 29, 2022	Jul 31, 2022	Jul 30, 2022	Apr 30, 2022	Jan 31, 2022
Revenue (ttm)	US$ in thousands	17,578,500	31,219,700	32,291,400	32,227,400	31,909,400	30,594,800	29,280,200	29,289,200	29,298,200	29,693,600	30,089,000	29,705,100	29,321,200	28,369,000	27,416,800	27,379,500	27,520,200	27,832,300	27,481,500	26,996,600
Property, plant and equipment	US$ in thousands	—	—	—	—	6,144,100	—	12,482,500	5,714,600	5,359,200	5,359,200	5,111,800	5,111,800	4,972,200	4,972,200	11,237,200	4,823,900	4,652,900	4,652,900	4,514,000	10,902,600
Fixed asset turnover		—	—	—	—	5.19	—	2.35	5.13	5.47	5.54	5.89	5.81	5.90	5.71	2.44	5.68	5.91	5.98	6.09	2.48

January 31, 2025 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $17,578,500K ÷ $—K
= —

Fixed asset turnover is a key financial ratio that measures how efficiently a company is utilizing its fixed assets to generate revenue. Dollar Tree Inc's fixed asset turnover ratio has shown fluctuations over the periods provided in the data.

Starting from January 31, 2022, the fixed asset turnover ratio was 2.48, indicating that Dollar Tree generated $2.48 in revenue for every $1 of fixed assets. The ratio then increased significantly to 6.09 by April 30, 2022, suggesting an improvement in asset utilization efficiency. This high ratio was maintained at around 5.98 in the subsequent periods until July 31, 2023.

However, there was a slight decline in the ratio to 5.47 by July 31, 2023, followed by a further decrease to 2.35 by October 31, 2023. This decline might indicate either a decrease in revenue generation or an increase in the value of fixed assets, impacting the efficiency of asset utilization.

There are missing data points for the fixed asset turnover ratio in the periods January 31, 2024; April 30, 2024; July 31, 2024; and October 31, 2024, which makes it challenging to assess the trend for these periods.

Overall, a higher fixed asset turnover ratio is usually preferred as it signifies that the company is generating more revenue from its fixed assets. However, it is essential to review other financial metrics and qualitative factors to gain a comprehensive understanding of Dollar Tree Inc's operational efficiency and financial performance.