Dollar Tree (BSP:DLTR34) ROCE % : -40.61% (As of Jan. 2024)

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What is Dollar Tree ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Dollar Tree's annualized ROCE % for the quarter that ended in Jan. 2024 was -40.61%.

Dollar Tree ROCE % Historical Data

The historical data trend for Dollar Tree's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Dollar Tree ROCE % Chart

Dollar Tree Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

ROCE %

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9.59

12.85

10.65

11.93

-4.75

Dollar Tree Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
ROCE %	Get a 7-Day Free Trial															13.28	8.74	5.89	6.40	-40.61

Dollar Tree ROCE % Calculation

Dollar Tree's annualized ROCE % for the fiscal year that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Jan. 2024 )		(A: Jan. 2023 )		(A: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Jan. 2024 )		(A: Jan. 2023 )		(A: Jan. 2024 )
	=	-4337.361	/	( ( (119535.348 - 21938.083)	+	(108315.978 - 23099.31) )	/ 2 )
	=	-4337.361	/	( (97597.265	+	85216.668)	/ 2 )
	=	-4337.361	/	91406.9665
	=	-4.75 %

Dollar Tree's ROCE % of for the quarter that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	-37199.296	/	( ( (121499.344 - 23499.318)	+	(108315.978 - 23099.31) )	/ 2 )
	=	-37199.296	/	( ( 98000.026	+	85216.668 )	/ 2 )
	=	-37199.296	/	91608.347
	=	-40.61 %

(1) Note: The EBIT data used here is four times the quarterly (Jan. 2024) EBIT data.

Dollar Tree (BSP:DLTR34) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Dollar Tree ROCE % Related Terms

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Dollar Tree (BSP:DLTR34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Dollar Tree Inc (BSP:DLTR34) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

DLTR:USA DLTR:Mexico DT3:Germany DLTR:Austria

Address

500 Volvo Parkway, Chesapeake, VA, USA, 23320

Website

https://www.dollartree.com

Dollar Tree operates discount stores across the United States and Canada, with over 8,200 shops under its namesake banner and 8,350 under Family Dollar. About 45% of Dollar Tree's sales in fiscal 2022 were composed of consumables (including food, health and beauty, and cleaning products), nearly 50% from variety items (including toys and homewares), and over 5% from seasonal items. The Dollar Tree banner sells most of its merchandise at the $1.25 price point and positions its stores in well-populated suburban markets. Conversely, Family Dollar primarily sells consumable merchandise (nearly 80% of the banner's sales) at prices below $10. About two-thirds of Family Dollar's stores are located in urban and suburban markets, with the remaining one-third located in rural areas.

Dollar Tree (BSP:DLTR34) Headlines

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