Dollar Tree Inc (DLTR)

Debt-to-capital ratio

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Long-term debt	US$ in thousands	3,426,300	3,421,600	3,417,000	3,226,200	3,522,200
Total stockholders’ equity	US$ in thousands	7,313,100	8,751,500	7,718,500	7,285,300	6,254,800
Debt-to-capital ratio		0.32	0.28	0.31	0.31	0.36

February 3, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,426,300K ÷ ($3,426,300K + $7,313,100K)
= 0.32

The debt-to-capital ratio for Dollar Tree Inc has shown some fluctuation over the past five years. As of February 3, 2024, the ratio stands at 0.32, indicating that debt accounts for approximately 32% of the company's total capital. This is an increase from the previous year when the ratio was 0.28.

In general, a lower debt-to-capital ratio is considered favorable as it suggests that the company relies less on debt financing and has a stronger capital structure. However, it is important to note that a higher ratio does not necessarily indicate financial distress, as the ideal ratio can vary by industry and company size.

Dollar Tree Inc's debt-to-capital ratio has remained relatively stable around the 0.30 mark in recent years, indicating a moderate level of debt usage in the company's capital structure. It would be important to monitor this ratio along with other financial metrics to assess the company's overall financial health and risk profile.