Dollar Tree Inc (DLTR)

Current ratio

		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
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
Current ratio		1.06	1.03	1.02	1.28	1.31	1.31	1.36	1.36	1.48	1.48	1.51	1.51	1.51	1.51	1.38	1.38	1.46	1.46	1.46	1.34

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 some fluctuations over the past few years, ranging from a high of 1.51 to a low of 1.02. The current ratio indicates the company's ability to meet its short-term obligations with its current assets. A current ratio of 1.00 or higher is generally considered healthy, as it suggests that the company has enough current assets to cover its current liabilities.

Between January 2022 and April 2023, the current ratio remained relatively stable, fluctuating between 1.34 and 1.51. This consistency suggests that Dollar Tree Inc was able to maintain a strong position in terms of liquidity during this period.

However, starting from July 2024, the current ratio decreased significantly to 1.02, which indicates a potential challenge in meeting short-term obligations with current assets. This decline may be a cause for concern as it could signal possible liquidity issues for the company.

It is important for investors and stakeholders to closely monitor Dollar Tree Inc's current ratio to assess its liquidity position and ability to manage short-term financial obligations effectively.