Dollar Tree Inc (DLTR)

Cash ratio

		Jan 31, 2025	Feb 3, 2024	Jan 31, 2024	Jan 31, 2023	Jan 28, 2023
Cash and cash equivalents	US$ in thousands	1,256,500	684,900	684,900	642,800	642,800
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	8,585,900	4,696,700	4,696,700	4,225,200	4,225,200
Cash ratio		0.15	0.15	0.15	0.15	0.15

January 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,256,500K + $—K) ÷ $8,585,900K
= 0.15

The cash ratio of Dollar Tree Inc has remained constant at 0.15 over the past five periods, from January 28, 2023, to January 31, 2025. This ratio indicates that for every dollar of current liabilities, the company holds $0.15 in cash or cash equivalents. A cash ratio of 0.15 suggests that Dollar Tree Inc may have a relatively low level of cash compared to its current liabilities. It is important for the company to closely monitor its liquidity position to ensure it can meet its short-term obligations.