Dollar Tree Inc (DLTR)

Total asset turnover

		Jan 31, 2025	Feb 3, 2024	Jan 31, 2024	Jan 31, 2023	Jan 28, 2023
Revenue	US$ in thousands	17,578,500	30,603,800	30,603,800	28,331,700	28,331,700
Total assets	US$ in thousands	18,644,000	22,023,500	22,023,500	23,022,100	23,022,100
Total asset turnover		0.94	1.39	1.39	1.23	1.23

January 31, 2025 calculation

Total asset turnover = Revenue ÷ Total assets
= $17,578,500K ÷ $18,644,000K
= 0.94

Total asset turnover is a financial ratio that measures a company's ability to generate revenue relative to its total assets. In the case of Dollar Tree Inc, the total asset turnover ratio has fluctuated over the years.

In January 2023 and February 2024, the total asset turnover ratio stood at 1.23 and 1.39 respectively, indicating that the company generated $1.23 and $1.39 in revenue for every dollar of assets during those periods. This suggests efficient asset utilization by Dollar Tree Inc.

However, in January 2025, the total asset turnover ratio dropped to 0.94, implying a decline in the company's ability to generate revenue from its assets. This decrease could be a result of various factors such as changes in sales volume, asset base, or operational efficiency.

Overall, Dollar Tree Inc has shown varying levels of total asset turnover in the given period, reflecting different degrees of effectiveness in utilizing its assets to generate revenue.