Dollar Tree Inc (DLTR)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	-998,400	1,163,600	1,218,500	1,378,000	1,615,400	1,617,400	1,567,300	1,489,800	1,327,900	1,376,500	1,489,700	1,468,800	1,341,900	962,100	887,900	806,700	827,000	-1,603,000	-1,577,000	-1,483,400
Total stockholders’ equity	US$ in thousands	7,313,100	8,998,200	9,031,000	8,899,700	8,751,500	8,275,300	8,396,500	8,241,500	7,718,500	7,244,400	7,011,700	7,411,300	7,285,300	6,961,100	6,813,600	6,520,600	6,254,800	6,121,300	5,865,700	5,755,900
ROE		-13.65%	12.93%	13.49%	15.48%	18.46%	19.54%	18.67%	18.08%	17.20%	19.00%	21.25%	19.82%	18.42%	13.82%	13.03%	12.37%	13.22%	-26.19%	-26.89%	-25.77%

February 3, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-998,400K ÷ $7,313,100K
= -13.65%

Return on equity (ROE) is a key financial ratio that measures a company's profitability relative to its shareholders' equity. It indicates how efficiently a company is using its equity to generate profit.

Analyzing Dollar Tree Inc's ROE over the past few quarters, we observe fluctuations in the ratio. For the most recent quarter ending on February 3, 2024, the ROE was negative at -13.65%, indicating that the company generated a net loss relative to its equity. This is a significant decline compared to the previous quarter but consistent with the negative trend observed over the recent quarters.

The positive ROE values from October 2023 to April 2023 show that Dollar Tree Inc was able to generate profits relative to its equity during this period, with a peak ROE of 18.46% in January 2023. This suggests that the company was effectively utilizing its equity to generate returns for shareholders.

However, the declining trend in ROE from April 2023 to February 2024 may raise concerns about Dollar Tree Inc's profitability and efficiency in utilizing shareholder equity. The negative ROE values in recent quarters indicate challenges in generating profit relative to equity, which could be a result of various factors impacting the company's financial performance.

Overall, the fluctuating ROE trend for Dollar Tree Inc highlights the importance of closely monitoring the company's financial performance and profitability to assess its ability to generate returns for shareholders.