Dollar Tree Inc (DLTR)

Quick ratio

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

February 3, 2024 calculation

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

The quick ratio of Dollar Tree Inc has varied over the past five fiscal years. In the most recent fiscal year ending on February 3, 2024, the quick ratio was 0.15, indicating a relatively low level of liquidity compared to the previous year when the quick ratio was also 0.15.

In the fiscal year ending on January 29, 2022, the quick ratio improved to 0.24, suggesting a better ability to cover its short-term liabilities with its most liquid assets. However, this improvement was not sustained in the following years as the quick ratio decreased to 0.38 in the fiscal year ending on January 30, 2021, and then dropped back to 0.15 in the fiscal year ending on February 1, 2020.

Overall, the quick ratio of Dollar Tree Inc has exhibited fluctuation, indicating varying levels of liquidity and ability to meet short-term obligations with its quickly convertible assets. It is essential for the company to carefully manage its liquidity position to ensure it can effectively address its short-term financial requirements.