Dollar Tree Inc (DLTR)

Current ratio

		Jan 31, 2025	Feb 3, 2024	Jan 31, 2024	Jan 31, 2023	Jan 28, 2023
Total current assets	US$ in thousands	9,107,200	6,132,700	6,132,700	6,367,100	6,367,100
Total current liabilities	US$ in thousands	8,585,900	4,696,700	4,696,700	4,225,200	4,225,200
Current ratio		1.06	1.31	1.31	1.51	1.51

January 31, 2025 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $9,107,200K ÷ $8,585,900K
= 1.06

The current ratio of Dollar Tree Inc has shown a gradual decline over the years. As of January 28, 2023, and January 31, 2023, the current ratio was at a fairly healthy level of 1.51. However, there was a noticeable decrease in the ratio as of January 31, 2024, and February 3, 2024, where it stood at 1.31. This downward trend was further reflected in the most recent data available as of January 31, 2025, showing a current ratio of 1.06.

A current ratio above 1 typically indicates that the company has more current assets than current liabilities, suggesting a strong liquidity position. While Dollar Tree Inc still maintains a current ratio above 1, the downward trajectory observed over the years may raise concerns about its ability to cover its short-term obligations effectively. It would be important for stakeholders to closely monitor the company's liquidity management strategies to ensure financial stability in the future.