Dollar Tree Inc (DLTR)

Operating return on assets (Operating ROA)

		Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Operating income (ttm)	US$ in thousands	-881,800	1,627,300	1,706,900	1,924,500	2,236,300	2,197,000	2,126,200	2,023,000	1,811,400	1,914,200	2,069,200	2,041,900	1,887,900	1,455,700	1,348,600	1,242,600	1,262,200	-1,134,600	-1,105,200	-991,600
Total assets	US$ in thousands	22,023,500	24,031,200	23,428,000	23,108,600	23,022,100	22,909,500	22,676,300	22,372,300	21,721,800	21,390,000	20,445,200	21,050,700	20,696,000	20,652,200	20,671,000	20,471,800	19,574,600	19,742,100	19,493,800	19,354,300
Operating ROA		-4.00%	6.77%	7.29%	8.33%	9.71%	9.59%	9.38%	9.04%	8.34%	8.95%	10.12%	9.70%	9.12%	7.05%	6.52%	6.07%	6.45%	-5.75%	-5.67%	-5.12%

February 3, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $-881,800K ÷ $22,023,500K
= -4.00%

Operating Return on Assets (Operating ROA) is a key financial metric that indicates how efficiently a company is generating profits from its assets. Dollar Tree Inc's Operating ROA has shown fluctuations over the past several quarters, ranging from -5.75% to 10.12%.

From February 2020 to February 2024, Dollar Tree's Operating ROA has generally been positive, except for two quarters where it was negative. The highest Operating ROA was recorded in July 2021 at 10.12%, indicating a strong performance in generating profits from its assets during that period.

Overall, Dollar Tree's Operating ROA has been relatively stable, with the average ROA ranging from 6% to 10%, suggesting that the company has been effectively utilizing its assets to generate profits. However, the negative Operating ROA figures recorded in some quarters indicate potential inefficiencies in the company's operations during those periods.

It would be important for Dollar Tree to analyze the factors contributing to these fluctuations and negative figures in order to improve operational efficiency and enhance profitability in the future.