Dollar Tree Inc (DLTR)

Return on assets (ROA)

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Net income	US$ in thousands	-998,400	1,615,400	1,327,900	1,341,900	827,000
Total assets	US$ in thousands	22,023,500	23,022,100	21,721,800	20,696,000	19,574,600
ROA		-4.53%	7.02%	6.11%	6.48%	4.22%

February 3, 2024 calculation

ROA = Net income ÷ Total assets
= $-998,400K ÷ $22,023,500K
= -4.53%

The return on assets (ROA) of Dollar Tree Inc has shown fluctuations over the past five years. In the latest fiscal year ending on February 3, 2024, the company's ROA declined significantly to -4.53%, indicating a negative return on its total assets. This sharp decrease raises concerns about the company's ability to generate profits from its assets efficiently.

In the preceding fiscal year, ending on January 28, 2023, Dollar Tree Inc achieved a ROA of 7.02%, reflecting a strong performance in generating profits relative to its assets. This positive outcome suggests effective asset utilization and profitability during that period.

Comparing the most recent ROA to the three prior years, we see that Dollar Tree Inc's performance has been relatively consistent, hovering around the 6% range. This indicates that the company has historically been able to generate a moderate return on its assets, though the negative ROA in the latest year signifies a recent decline in efficiency.

Overall, Dollar Tree Inc's fluctuating ROA figures necessitate further examination to identify the factors contributing to the negative return on assets in the most recent fiscal year and assess the company's ability to improve asset utilization efficiency going forward.