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.
Peer comparison
Feb 3, 2024