Dollar Tree Inc (DLTR)

Working capital 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
Total current assets	US$ in thousands	6,132,700	6,367,100	5,609,200	5,050,800	4,269,400
Total current liabilities	US$ in thousands	4,696,700	4,225,200	4,176,600	3,730,300	3,546,500
Working capital turnover		21.31	13.23	18.37	19.32	32.66

February 3, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $30,603,800K ÷ ($6,132,700K – $4,696,700K)
= 21.31

The working capital turnover ratio for Dollar Tree Inc has fluctuated over the past five years. In the most recent fiscal year ending on February 3, 2024, the company achieved a working capital turnover of 21.31, indicating that Dollar Tree Inc effectively utilized its working capital to generate sales revenue. This figure represents a significant increase compared to the previous year, where the working capital turnover stood at 13.23.

Looking further back, we observe that Dollar Tree Inc experienced varying levels of working capital turnover in the preceding years. The ratios for January 29, 2022, and January 30, 2021, were 18.37 and 19.32, respectively, suggesting consistent efficiency in utilizing its working capital during those periods. However, the working capital turnover ratio was notably higher in the fiscal year ending on February 1, 2020, reaching 32.66, indicating a particularly efficient management of working capital to drive sales.

Overall, the trend in Dollar Tree Inc's working capital turnover reflects fluctuations over the years, with the latest ratio showing a significant improvement in the company's ability to generate revenue from its working capital. This metric indicates the effectiveness of Dollar Tree Inc in utilizing its resources efficiently to support its operational activities and drive business growth.