Dollar Tree Inc (DLTR)

Cash ratio

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Cash and cash equivalents	US$ in thousands	684,900	642,800	984,900	1,416,700	539,200
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	4,696,700	4,225,200	4,176,600	3,730,300	3,546,500
Cash ratio		0.15	0.15	0.24	0.38	0.15

February 3, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($684,900K + $—K) ÷ $4,696,700K
= 0.15

The cash ratio for Dollar Tree Inc has shown fluctuating trends over the past five years. As of February 3, 2024, the cash ratio stands at 0.15, the same as it was in the previous year. This indicates that for every dollar of current liabilities, the company has 0.15 dollars in cash and cash equivalents available to cover those obligations.

Comparing this to the cash ratio of 0.24 in January 29, 2022, and 0.38 in January 30, 2021, we observe a decreasing trend in the company's liquidity position. A lower cash ratio suggests a higher dependency on non-cash assets to meet short-term obligations.

It is worth noting that the cash ratio in February 1, 2020, was also 0.15, signaling consistency in Dollar Tree Inc's liquidity position over the past two years. Overall, while the company maintains a relatively stable cash position, management may need to closely monitor and manage liquidity risk to ensure the company remains financially sound in the future.