Dollar Tree Inc (DLTR)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-881,800	1,627,300	1,706,900	1,924,500	2,236,300	2,197,000	2,126,200	2,023,000	1,811,400	1,914,200	2,069,200	2,041,900	1,887,900	1,455,700	1,348,600	1,242,600	1,262,200	-1,134,600	-1,105,200	-991,600
Long-term debt	US$ in thousands	3,426,300	3,425,100	3,423,900	3,422,700	3,421,600	3,420,400	3,419,300	3,418,100	3,417,000	3,231,100	3,229,500	3,227,800	3,226,200	3,225,300	3,224,300	3,223,300	3,522,200	3,520,200	3,518,600	3,516,900
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
Return on total capital		-8.21%	13.10%	13.70%	15.62%	18.37%	18.78%	17.99%	17.35%	16.27%	18.27%	20.20%	19.19%	17.96%	14.29%	13.44%	12.75%	12.91%	-11.77%	-11.78%	-10.69%

February 3, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-881,800K ÷ ($3,426,300K + $7,313,100K)
= -8.21%

Dollar Tree Inc's return on total capital has shown fluctuations over the past several quarters. The return on total capital was negative at -8.21% in the most recent quarter, indicating a decrease in the company's ability to generate profits from its total capital. However, the return on total capital rebounded in the previous quarter to 13.10% and remained relatively stable around the mid-teens to high-teens in the preceding quarters.

It is important to note that a return on total capital above the company's cost of capital is generally considered favorable, as it signifies that the company is generating returns higher than the cost of its debt and equity capital. The negative returns in some quarters suggest potential inefficiencies in the company's capital allocation and operational performance. Further analysis of the company's financial health and strategic decisions may be required to understand the underlying factors contributing to the fluctuations in return on total capital for Dollar Tree Inc.