Dollar Tree Inc (DLTR)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	-3,030,100	-1,044,000	-2,987,100	-2,907,500	-2,995,600	-1,085,400	824,800	911,800	998,800	1,250,600	1,502,400	1,470,300	1,438,200	1,345,900	1,253,600	1,523,100	1,710,400	1,804,700	1,661,600	1,342,000
Total assets	US$ in thousands	18,644,000	23,332,800	22,616,600	22,110,200	22,023,500	22,023,500	24,031,200	24,031,200	23,428,000	23,428,000	23,108,600	23,108,600	23,022,100	23,022,100	22,909,500	22,909,500	22,676,300	22,676,300	22,372,300	21,721,800
ROA		-16.25%	-4.47%	-13.21%	-13.15%	-13.60%	-4.93%	3.43%	3.79%	4.26%	5.34%	6.50%	6.36%	6.25%	5.85%	5.47%	6.65%	7.54%	7.96%	7.43%	6.18%

January 31, 2025 calculation

ROA = Net income (ttm) ÷ Total assets
= $-3,030,100K ÷ $18,644,000K
= -16.25%

Based on the provided data for Dollar Tree Inc's return on assets (ROA) from January 31, 2022, to January 31, 2025, there is a noticeable fluctuation in the ROA over the period.

The ROA started at 6.18% in January 2022 and showed a general upward trend, reaching a peak of 7.96% in July 2022. However, from October 2022 to July 2023, the ROA experienced a declining trend, dropping to 4.26% in July 2023.

From October 2023 to October 2024, the ROA continued to decline significantly, reaching -13.21% in July 2024. This negative trend persisted until January 2025, with an ROA of -16.25%.

The declining trend in ROA from October 2023 onwards indicates a potential decrease in the company's efficiency in generating profits from its assets. A negative ROA implies that the company's assets are not generating sufficient profits, which could be a cause for concern for investors and stakeholders.

Overall, Dollar Tree Inc's ROA fluctuated over the period, showing signs of both growth and decline, with a significant decline in recent periods, highlighting potential challenges in generating profits relative to its assets.