Dollar Tree Inc (DLTR)

Debt-to-equity 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-equity ratio		0.47	0.39	0.44	0.44	0.56

February 3, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,426,300K ÷ $7,313,100K
= 0.47

The debt-to-equity ratio of Dollar Tree Inc has fluctuated over the past five years, ranging from 0.39 to 0.56. In the most recent fiscal year, as of February 3, 2024, the ratio was 0.47, indicating that the company had $0.47 in debt for every $1 of equity. This suggests a moderate level of leverage, with a significant portion of the company's assets financed through debt.

Comparing this to the prior years, we can see that the ratio was at its lowest in January 28, 2023, at 0.39, which may indicate a stronger equity position compared to debt at that time. However, the ratio increased in the subsequent years, reaching a similar level of 0.44 in both January 29, 2022 and January 30, 2021. The highest ratio recorded was in February 1, 2020, at 0.56, indicating a higher reliance on debt financing at that time.

Overall, based on the trend observed in the debt-to-equity ratio, it is essential for stakeholders to monitor Dollar Tree Inc's capital structure and debt levels to assess the company's financial risk and ability to manage its obligations effectively.