Dollar Tree Inc (DLTR)

Solvency ratios

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
Debt-to-assets ratio 0.16 0.14 0.15 0.15 0.15 0.15 0.15 0.15 0.16 0.15 0.16 0.15 0.16 0.16 0.16 0.16 0.18 0.18 0.18 0.18
Debt-to-capital ratio 0.32 0.28 0.27 0.28 0.28 0.29 0.29 0.29 0.31 0.31 0.32 0.30 0.31 0.32 0.32 0.33 0.36 0.37 0.37 0.38
Debt-to-equity ratio 0.47 0.38 0.38 0.38 0.39 0.41 0.41 0.41 0.44 0.45 0.46 0.44 0.44 0.46 0.47 0.49 0.56 0.58 0.60 0.61
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

Dollar Tree Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations. The trend in the debt-to-assets ratio has remained relatively stable around 0.15 to 0.18 over the past few quarters, suggesting that Dollar Tree has maintained a conservative level of debt relative to its total assets.

The debt-to-capital and debt-to-equity ratios have shown an increasing trend, with the ratios rising from 0.27 to 0.38 and from 0.38 to 0.61, respectively, over the same period. This indicates a higher proportion of debt relative to both total capital and equity, which may increase the company's financial risk as it relies more on debt financing.

The financial leverage ratio has experienced fluctuations but has generally increased from 2.59 to 3.36. This suggests that Dollar Tree has been utilizing more leverage to finance its operations, which can magnify returns but also increase the potential for financial distress.

Overall, while Dollar Tree has maintained a decent debt-to-assets ratio, the increasing trend in debt-to-capital, debt-to-equity, and financial leverage ratios warrants close monitoring of the company's financial health and management of its long-term debt levels to ensure sustainable growth and solvency.


Coverage ratios

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
Interest coverage -8.26 15.00 15.41 16.42 17.85 12.43 11.98 11.25 10.13 14.33 14.96 14.57 12.82 9.56 8.67 7.72 7.79 -6.71 -6.30 -5.47

The interest coverage ratio for Dollar Tree Inc has shown significant fluctuations over the past 20 reported periods. The ratio has ranged from a low of -8.26 to a high of 17.85. It is concerning to note that there were some periods where the company's earnings were not sufficient to cover its interest expenses, as indicated by negative ratios. However, there have also been periods where the company demonstrated strong interest coverage, with ratios exceeding 10.

Overall, Dollar Tree Inc's interest coverage ratio has displayed volatility, indicating varying degrees of ability to meet its interest obligations using its operating income. It would be important for investors and stakeholders to closely monitor this ratio to assess the company's financial health and ability to manage its debt obligations effectively.


See also:

Dollar Tree Inc Solvency Ratios (Quarterly Data)