Dollar Tree Inc (DLTR)

Solvency ratios

Jan 31, 2025 Feb 3, 2024 Jan 31, 2024 Jan 31, 2023 Jan 28, 2023
Debt-to-assets ratio 0.00 0.16 0.00 0.00 0.15
Debt-to-capital ratio 0.00 0.32 0.00 0.00 0.28
Debt-to-equity ratio 0.00 0.47 0.00 0.00 0.39
Financial leverage ratio 4.69 3.01 3.01 2.63 2.63

Dollar Tree Inc's solvency ratios show a consistent trend of low to zero debt levels compared to its assets, capital, and equity. The Debt-to-assets ratio has remained low, with fluctuations between 0.00 and 0.16 over the years, indicating that the company has little debt in relation to its total assets.

Similarly, the Debt-to-capital ratio has also stayed at or near zero, with slight increases noted in some periods. This signifies that Dollar Tree has minimal debt in proportion to its total capital structure.

The Debt-to-equity ratio has followed a similar pattern, remaining close to zero in most periods but showing a slight uptick to 0.47 in February 3, 2024, indicating a higher level of debt relative to equity at that particular time.

Finally, the Financial leverage ratio has seen an increasing trend from 2.63 in January 28, 2023, to 4.69 in January 31, 2025. This suggests that the company's reliance on debt to finance its operations has been growing over the years, potentially increasing financial risk.

Overall, Dollar Tree Inc's solvency ratios reflect a conservative approach to debt management, with relatively low levels of leverage compared to its assets, capital, and equity. However, the increasing financial leverage ratio highlights a shift towards higher debt usage, which investors and analysts should continue to monitor for its impact on the company's financial health and risk profile.


Coverage ratios

Jan 31, 2025 Feb 3, 2024 Jan 31, 2024 Jan 31, 2023 Jan 28, 2023
Interest coverage 13.87 -149.46 -8.26 17.84 588.50

The interest coverage ratio, which indicates a company's ability to meet its interest payment obligations, has fluctuated significantly for Dollar Tree Inc over the years based on the provided data:

1. As of January 28, 2023, the interest coverage ratio was exceptionally strong at 588.50, suggesting the company had a comfortable buffer to cover its interest expenses.

2. By January 31, 2023, the interest coverage ratio decreased to 17.84, signaling a decline in the company's ability to cover its interest costs compared to the previous period.

3. The interest coverage ratio turned negative in the subsequent periods, with values of -8.26 as of January 31, 2024, and -149.46 as of February 3, 2024. A negative interest coverage ratio implies that the company's operating income is insufficient to cover its interest expenses.

4. As of January 31, 2025, the interest coverage ratio improved to 13.87, indicating a partial recovery in the company's ability to cover its interest payments, although it remained below the ideal level.

In summary, Dollar Tree Inc experienced a sharp decline in its interest coverage ratio, leading to negative values in certain periods, which may raise concerns about its financial stability and ability to service its debt obligations. The subsequent improvement in the ratio suggests some recovery, but monitoring the trend is essential for assessing the company's financial health.


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Dollar Tree Inc Solvency Ratios