Dollar Tree Inc (DLTR)

Financial leverage ratio

		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
Total assets	US$ in thousands	22,023,500	24,031,200	23,428,000	23,108,600	23,022,100	22,909,500	22,676,300	22,372,300	21,721,800	21,390,000	20,445,200	21,050,700	20,696,000	20,652,200	20,671,000	20,471,800	19,574,600	19,742,100	19,493,800	19,354,300
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
Financial leverage ratio		3.01	2.67	2.59	2.60	2.63	2.77	2.70	2.71	2.81	2.95	2.92	2.84	2.84	2.97	3.03	3.14	3.13	3.23	3.32	3.36

February 3, 2024 calculation

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

The financial leverage ratio for Dollar Tree Inc has shown some fluctuations over the past several quarters, ranging from 2.59 to 3.36. This ratio indicates the company's level of debt relative to its equity capital.

An increasing trend in the financial leverage ratio suggests that the company is relying more on debt financing compared to equity, which can amplify returns on equity during favorable times but also increases the risk during economic downturns.

A decreasing trend in the financial leverage ratio indicates a reduction in debt relative to equity, which may signal a conservative financial structure or a shift towards equity financing. However, too low of a ratio could suggest underutilization of debt in capital structure.

Overall, analyzing the trend of Dollar Tree Inc's financial leverage ratio can provide insights into the company's capital structure decisions, risk management practices, and financial health over time. It is essential to monitor this ratio in conjunction with other financial metrics for a comprehensive assessment of the company's leverage position.