Dollar Tree (BSP:DLTR34) Operating Income : R$972 Mil (TTM As of Jan. 2024)

View and export this data going back to 2019. Start your Free Trial

What is Dollar Tree Operating Income?

Dollar Tree's Operating Income for the three months ended in Jan. 2024 was R$-4,043 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jan. 2024 was R$972 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Dollar Tree's Operating Income for the three months ended in Jan. 2024 was R$-4,043 Mil. Dollar Tree's Revenue for the three months ended in Jan. 2024 was R$42,493 Mil. Therefore, Dollar Tree's Operating Margin % for the quarter that ended in Jan. 2024 was -9.51%.

Warning Sign:

Dollar Tree Inc operating margin has been in a 5-year decline. The average rate of decline per year is -29.7%.

Dollar Tree's 5-Year average Growth Rate for Operating Margin % was -29.70% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Dollar Tree's annualized ROC % for the quarter that ended in Jan. 2024 was -14.21%. Dollar Tree's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2024 was -49.20%.

Dollar Tree Operating Income Historical Data

The historical data trend for Dollar Tree's Operating Income 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.

* Premium members only.

Dollar Tree Operating Income Chart

Dollar Tree Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Operating Income

Get a 7-Day Free Trial

6,538.97

10,132.93

10,017.04

11,611.32

920.69

Dollar Tree Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Operating Income	Get a 7-Day Free Trial															3,209.30	2,107.52	1,381.58	1,525.37	-4,042.76

Dollar Tree Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Jan. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was R$972 Mil.

Dollar Tree (BSP:DLTR34) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

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

	ROC % (Q: Jan. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Oct. 2023 )	+	Invested Capital (Q: Jan. 2024 ))	/ count )
=	-16171.04 * ( 1 - 10.82% )	/	( (109862.685	+	93100.543)	/ 2 )
=	-14421.333472	/	101481.614
=	-14.21 %

where

	Invested Capital		(Q: Oct. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	121499.344	-	9388.806	-	( 2247.853	-	max(0, 23499.318	-	31862.787	+	2247.853	))
=	109862.685

	Invested Capital		(Q: Jan. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	108315.978	-	11846.96	-	( 3368.475	-	max(0, 23099.31	-	30161.845	+	3368.475	))
=	93100.543

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

2. Joel Greenblatt's definition of Return on Capital:

Dollar Tree's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jan. 2024 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Jan. 2024 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Oct. 2023		Q: Jan. 2024
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-37199.296	/	( ( (63110.272 + max(14828.448, 0))	+	(62128.67 + max(11135.297, 0)) )	/	2 )
=	-37199.296	/	( ( 77938.72	+	73263.967 )	/	2 )
=	-37199.296	/	75601.3435
=	-49.20 %

where Working Capital is:

	Working Capital		(Q: Oct. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	27883.794	+	1731.14)	-	(9388.806	+	0	+	5397.68)
=	14828.448

	Working Capital		(Q: Jan. 2024 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(0	+	25145.773	+	1647.597)	-	(11846.96	+	0	+	3811.113)
=	11135.297

When net working capital is negative, 0 is used.

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

3. Operating Income is also linked to Operating Margin %:

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

Operating Margin %	=	Operating Income (Q: Jan. 2024 )	/	Revenue (Q: Jan. 2024 )
	=	-4042.76	/	42492.756
	=	-9.51 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Dollar Tree Operating Income Related Terms

Thank you for viewing the detailed overview of Dollar Tree's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

Dollar Tree (BSP:DLTR34) Business Description

Industry

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

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

No Headlines