Dollar Tree Inc (DLTR)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	18,644,000	7,636,100	7,379,500	7,312,400	7,313,100	7,313,100	8,998,200	8,998,200	9,031,000	9,031,000	8,899,700	8,899,700	8,751,500	8,751,500	8,275,300	8,275,300	8,396,500	8,396,500	8,241,500	7,718,500
ROE		-16.25%	-13.67%	-40.48%	-39.76%	-40.96%	-14.84%	9.17%	10.13%	11.06%	13.85%	16.88%	16.52%	16.43%	15.38%	15.15%	18.41%	20.37%	21.49%	20.16%	17.39%

January 31, 2025 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-3,030,100K ÷ $18,644,000K
= -16.25%

Return on Equity (ROE) is a key financial ratio that indicates how effectively a company is using its shareholders' equity to generate profits. For Dollar Tree Inc, the ROE has shown significant fluctuation over the period from January 31, 2022, to January 31, 2025.

The ROE for Dollar Tree Inc started at 17.39% in January 2022 and experienced a generally increasing trend, reaching a peak of 21.49% in July 2022. However, after July 2022, the ROE started to decline, dropping to 9.17% by October 2023. Notably, the ROE turned negative in the following periods, indicating that the company was generating net losses relative to its shareholder's equity.

The negative ROE in the last few periods, including a significant decrease to -40.96% in February 2024, is concerning as it suggests that Dollar Tree Inc's profitability and efficiency in generating returns for its shareholders have deteriorated. This decline in ROE could be attributed to various factors such as operational challenges, declining sales, increased expenses, or ineffective use of assets.

Overall, the fluctuating trend and the recent negative ROE figures highlight the need for investors and stakeholders to closely monitor Dollar Tree Inc's financial performance and assess the company's strategies to improve profitability and efficiency in utilizing shareholder funds.