Dollar Tree Inc (DLTR)

Working capital 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
Total current assets	US$ in thousands	9,107,200	6,631,500	6,092,300	6,082,200	6,132,700	6,132,700	6,302,100	6,302,100	6,157,400	6,157,400	6,267,600	6,267,600	6,367,100	6,367,100	6,446,600	6,446,600	6,377,300	6,377,300	6,282,300	5,609,200
Total current liabilities	US$ in thousands	8,585,900	6,413,300	5,999,900	4,756,300	4,696,700	4,696,700	4,647,900	4,647,900	4,150,300	4,150,300	4,141,500	4,141,500	4,225,200	4,225,200	4,683,100	4,683,100	4,380,500	4,380,500	4,289,900	4,176,600
Working capital turnover		33.72	143.08	349.47	24.31	22.22	21.31	17.70	17.71	14.60	14.79	14.15	13.97	13.69	13.24	15.55	15.53	13.78	13.94	13.79	18.84

January 31, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $17,578,500K ÷ ($9,107,200K – $8,585,900K)
= 33.72

Working capital turnover is a financial ratio that measures how efficiently a company is using its working capital to generate sales revenue. A higher working capital turnover ratio indicates that the company is effectively managing its working capital to support its operations.

Analyzing the working capital turnover of Dollar Tree Inc over the given period, we observe fluctuations in the ratio. From January 31, 2022, to January 31, 2023, the ratio ranged between 13.24 and 18.84, suggesting some volatility in the management of working capital during this period.

Subsequently, from April 29, 2023, to April 30, 2024, the working capital turnover ratio fluctuated within a narrower range of 13.97 to 24.31. This indicates some stabilization in the company's working capital management practices during this period.

However, a significant anomaly is observed on July 31, 2024, when the working capital turnover ratio spiked to 349.47, an abnormal increase compared to previous periods. This sudden surge could be attributed to specific events or anomalies impacting the company's working capital efficiency during that particular quarter.

Despite the anomaly in July 2024, the working capital turnover ratio reverted to a more normalized level of 143.08 on October 31, 2024, suggesting a potential one-time event effect on the ratio.

Overall, the working capital turnover ratio of Dollar Tree Inc shows variability over the analyzed period, with some periods of stability and occasional anomalies. Further investigation into the factors influencing these fluctuations would provide a deeper understanding of the company's working capital management efficiency.