Dollar Tree Inc (DLTR)
Return on total capital
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,491,100 | -881,800 | -881,900 | 2,235,900 | 2,236,300 |
| Long-term debt | US$ in thousands | — | 3,426,300 | — | — | 3,421,600 |
| Total stockholders’ equity | US$ in thousands | 3,977,400 | 7,313,100 | 7,313,100 | 8,751,500 | 8,751,500 |
| Return on total capital | 37.49% | -8.21% | -12.06% | 25.55% | 18.37% |
January 31, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,491,100K ÷ ($—K + $3,977,400K)
= 37.49%
The return on total capital for Dollar Tree Inc has displayed fluctuations over the period from January 28, 2023, to January 31, 2025. In January 2023, the return on total capital stood at 18.37%. It then saw an increase to 25.55% by January 2023. However, in January 2024, there was a significant decline with a negative return on total capital of -12.06%, followed by a further decrease to -8.21% in February 2024.
Despite these declines, Dollar Tree Inc managed to turn things around by January 31, 2025, achieving a notable return on total capital of 37.49%. This improvement signals positive performance and effective utilization of total capital resources by the company during the period under review. Fluctuations in the return on total capital highlight the company's ability to adapt to changing market conditions and strategic decisions impacting its financial performance.
Peer comparison
Jan 31, 2025