Dollar Tree (Dollar Tree) Interest Coverage

: 0 (At Loss) (As of Jan. 2024)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Dollar Tree's Operating Income for the three months ended in Jan. 2024 was $-822 Mil. Dollar Tree's Interest Expense for the three months ended in Jan. 2024 was $-26 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Dollar Tree's Interest Coverage or its related term are showing as below:

DLTR' s Interest Coverage Range Over the Past 10 Years
Min: 1.75 Med: 8.21 Max: 17.85
Current: 1.75

DLTR's Interest Coverage is ranked worse than
86.61% of 254 companies
in the Retail - Defensive industry
Industry Median: 9.325 vs DLTR: 1.75

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Dollar Tree Interest Coverage Historical Data

The historical data trend for Dollar Tree's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Dollar Tree Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Interest Coverage

9.72

12.82

10.13

17.85

1.75

Dollar Tree Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Interest Coverage																22.08	16.20	11.89	9.92	-

Competitive Comparison

For the Discount Stores subindustry, Dollar Tree's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Dollar Tree Interest Coverage Distribution

For the Retail - Defensive industry and Consumer Defensive sector, Dollar Tree's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Dollar Tree's Interest Coverage falls into.

Dollar Tree Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Dollar Tree's Interest Coverage for the fiscal year that ended in Jan. 2024 is calculated as

Here, for the fiscal year that ended in Jan. 2024, Dollar Tree's Interest Expense was $-107 Mil. Its Operating Income was $187 Mil. And its Long-Term Debt & Capital Lease Obligation was $8,874 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Jan. 2024 )	/	Interest Expense (A: Jan. 2024 )
	=	-1	*	187.2	/	-106.8
	=	1.75

Dollar Tree's Interest Coverage for the quarter that ended in Jan. 2024 is calculated as

Here, for the three months ended in Jan. 2024, Dollar Tree's Interest Expense was $-26 Mil. Its Operating Income was $-822 Mil. And its Long-Term Debt & Capital Lease Obligation was $8,874 Mil.

Dollar Tree did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's Financial Strength is.

Dollar Tree (NAS:DLTR) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Dollar Tree Interest Coverage Related Terms

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

Dollar Tree (Dollar Tree) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Dollar Tree Inc (NAS:DLTR) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

DLTR:Mexico DT3:Germany 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.

Executives

Mantle Ridge Lp	other: Director by deputization	712 FIFTH AVENUE, SUITE 17F, NEW YORK NY 10019
Robert Aflatooni	officer: Chief Information Officer	DOLLAR TREE, INC., 500 VOLVO PARKWAY, CHESAPEAKE VA 23328
Daniel J Heinrich	director	CLOROX CO, 1221 BROADWAY, OAKLAND CA 94612
Jonathan Leiken	officer: Chief Legal Officer	C/O DIEBOLD, INCORPORATED, 5995 MAYFAIR RD., NORTH CANTON OH 44720
Diane Randolph	director	1500 SOLANA BLVD, SUITE 3400, WESTLAKE TX 76262
Jennifer Hulett	officer: Chief Human Resources Officer	1500 SOLANA BLVD., SUITE 3400, WESTLAKE TX 76262
Michael J Kindy	officer: Chief Supply Chain Officer	100 MISSION RIDGE, GOODLETTSVILLE TN 37072
Jeffrey A. Davis	officer: Chief Financial Officer	1200 WILSON DRIVE, WEST CHESTER PA 19380
Richard W Dreiling	director, other: Executive Chairman	C/O SAFEWAY INC, 5918 STONERIDGE MALL ROAD, PLEASANTON CA 94588
Janet Dhillon	officer: Chief Legal Officer	111 W RIO SALADO PARKWAY, TEMPE AZ 85281
Creedon Michael C Jr	officer: Chief Operating Officer	833 KEITH ROAD, WAKE FOREST NC 27587
John W Flanigan	officer: Chief Supply Chain Officer	100 MISSION RIDGE, GOODLETTSVILLE TN 37072
Gatta Lawrence J. Jr.	officer: Chief Merchandising Officer FD	C/O LONGS DRUG STORES CORPORATION, 141 NORTH CIVIC DRIVE, WALNUT CREEK CA 94596
David A. Jacobs	officer: Chief Strategy Officer	500 VOLVO PARKWAY, CHESAPEAKE VA 23320
Kelly Edward J Iii	director	CIT GROUP INC, ONE CIT DRIVE, LIVINGSTON NJ 07039