Dollar Tree Inc (DLTR)

Financial leverage ratio

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Total assets	US$ in thousands	22,023,500	23,022,100	21,721,800	20,696,000	19,574,600
Total stockholders’ equity	US$ in thousands	7,313,100	8,751,500	7,718,500	7,285,300	6,254,800
Financial leverage ratio		3.01	2.63	2.81	2.84	3.13

February 3, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $22,023,500K ÷ $7,313,100K
= 3.01

The financial leverage ratio of Dollar Tree Inc has shown some fluctuation over the past five years. The ratio was 3.01 in February 2024, which indicates that the company's financial leverage has increased compared to the previous year. This could suggest that Dollar Tree Inc is relying more on debt to finance its operations and investments.

In January 2023, the ratio was 2.63, the lowest level in the provided data. This might indicate a lower reliance on debt during that period. However, in the following two years, the ratio increased to 2.81 in 2022 and 2.84 in 2021, showing a slight upward trend in leverage.

The highest financial leverage ratio in the data set was 3.13 in February 2020. This suggests that Dollar Tree Inc had a relatively high level of debt compared to its equity that year, indicating a potentially riskier financial position.

Overall, the fluctuation in Dollar Tree Inc's financial leverage ratio hints at varying levels of debt usage over the years, impacting the company's financial risk profile. Investors and stakeholders may monitor this ratio to assess the company's debt management strategy and overall financial health.