Dollar Tree Inc (DLTR)

Activity ratios

Short-term

Turnover ratios

	Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Inventory turnover	3.93	3.76	3.84	3.90	3.38	3.36	3.47	3.88	4.07	4.23	4.87	4.92	4.92	5.06	6.20	6.70	6.35	4.20	4.63	4.73
Receivables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Payables turnover	10.32	11.18	11.53	12.48	10.22	10.20	9.35	10.39	9.87	9.20	11.46	11.67	11.97	12.09	13.72	16.03	16.73	11.07	11.04	13.26
Working capital turnover	21.31	17.94	14.60	13.52	13.23	15.70	13.61	13.42	18.37	24.01	27.85	18.32	19.32	22.20	25.82	36.43	32.66	59.86	94.38	86.50

The activity ratios of Dollar Tree Inc provide insights into the efficiency of the company's operations and management of resources.

1. Inventory Turnover:
- Dollar Tree Inc's inventory turnover has been relatively stable over the past few years, ranging from 3.36 to 6.70.
- A higher inventory turnover indicates that the company is selling its inventory quickly, which is generally positive. However, fluctuations in this ratio may suggest changes in sales patterns or inventory management practices.

2. Receivables Turnover:
- The data does not provide information on Dollar Tree Inc's receivables turnover, which could indicate that the company operates on a cash basis or has minimal credit sales.

3. Payables Turnover:
- The payables turnover ratio for Dollar Tree Inc has fluctuated between 9.20 and 16.73 in recent periods.
- A higher payables turnover ratio suggests that the company is taking longer to pay its suppliers, potentially benefiting from extended credit terms. However, excessively high ratios may indicate liquidity issues or strained supplier relationships.

4. Working Capital Turnover:
- Dollar Tree Inc's working capital turnover has shown a significant variability, with a range from 13.23 to 94.38.
- A high working capital turnover ratio indicates that the company efficiently utilizes its working capital to generate sales. However, extreme fluctuations in this ratio may signal changes in the company's overall operating efficiency and financial health.

Overall, analyzing the activity ratios of Dollar Tree Inc provides valuable insights into the efficiency and effectiveness of the company's management of inventory, payables, and working capital to drive its operational performance.

Average number of days

		Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Days of inventory on hand (DOH)	days	92.78	96.96	94.95	93.57	108.09	108.58	105.25	94.00	89.71	86.24	74.93	74.14	74.14	72.13	58.83	54.47	57.48	86.94	78.86	77.13
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	35.38	32.65	31.65	29.24	35.73	35.78	39.04	35.13	36.98	39.66	31.86	31.28	30.49	30.19	26.60	22.77	21.81	32.98	33.07	27.52

Days of inventory on hand (DOH) measures how many days, on average, the company's inventory is held before being sold. Dollar Tree Inc's inventory turnover has been fluctuating over the periods provided, ranging from 54.47 days to 108.58 days. A lower number of days indicates a more efficient inventory turnover, which can be seen towards the end of the period with a decrease in DOH.

Days of sales outstanding (DSO) represents the average number of days it takes for the company to collect payment after a sale is made. Unfortunately, data for DSO is not available in the table provided. This metric is crucial for evaluating the company's credit and collection efficiency.

Number of days of payables reflects the average number of days it takes for a company to pay its suppliers or vendors. Dollar Tree Inc's payables period has varied from 21.81 days to 39.66 days. A longer payable period suggests that the company is taking longer to pay its suppliers, potentially improving cash flow.

Overall, Dollar Tree Inc's activity ratios indicate fluctuations in inventory turnover and payables period over the periods provided, which can be further analyzed to understand the company's operational efficiency and liquidity management.

Long-term

	Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Fixed asset turnover	4.98	5.19	5.47	5.62	5.70	5.74	5.84	5.92	5.88	5.94	6.06	6.15	6.20	6.12	6.11	6.08	6.08	6.17	6.35	6.55
Total asset turnover	1.39	1.24	1.25	1.24	1.23	1.21	1.20	1.20	1.21	1.22	1.26	1.22	1.23	1.21	1.19	1.18	1.21	1.19	1.19	1.19

The fixed asset turnover ratio for Dollar Tree Inc has remained relatively stable over the past few quarters, ranging between 4.98 and 6.55. This indicates that the company is generating between approximately 4.98 and 6.55 dollars of sales for every dollar invested in fixed assets. A higher fixed asset turnover ratio typically suggests that the company is efficiently utilizing its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio has fluctuated slightly, with values ranging from 1.18 to 1.39. This ratio reflects how effectively the company is using all its assets to generate revenue. A higher total asset turnover ratio may indicate that the company is efficiently utilizing all its assets to generate sales.

Overall, the consistent fixed asset turnover ratios suggest that Dollar Tree Inc has been effectively utilizing its fixed assets to generate revenue. Additionally, the fluctuating total asset turnover ratios indicate some variability in how efficiently the company is using all its assets to generate sales.