Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
Dollar Tree's Sloan Ratio for the quarter that ended in Jan. 2024 was -7.15%.
As of Jan. 2024, Dollar Tree has a Sloan Ratio of -7.15%, indicating the company is in the safe zone and there is no funny business with accruals.
Dollar Tree Sloan Ratio % Historical Data
The historical data trend for Dollar Tree's Sloan Ratio % 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 Annual Data
Trend
Jan15
Jan16
Jan17
Jan18
Jan19
Jan20
Jan21
Jan22
Jan23
Jan24
Sloan Ratio %
-0.12
-2.34
4.22
5.45
-7.15
Dollar Tree Quarterly Data
Apr19
Jul19
Oct19
Jan20
Apr20
Jul20
Oct20
Jan21
Apr21
Jul21
Oct21
Jan22
Apr22
Jul22
Oct22
Jan23
Apr23
Jul23
Oct23
Jan24
Sloan Ratio %
5.45
3.89
3.00
2.10
-7.15
Competitive Comparison
For the Discount Stores subindustry, Dollar Tree's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % Distribution
For the Retail - Defensive industry and Consumer Defensive sector, Dollar Tree's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Dollar Tree's Sloan Ratio % falls into.
Dollar Tree Sloan Ratio % Calculation
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Dollar Tree's Sloan Ratio for the fiscal year that ended in Jan. 2024 is calculated as
Dollar Tree's Net Income for the trailing twelve months (TTM) ended in Jan. 2024 was 299 (Apr. 2023 ) + 200.4 (Jul. 2023 ) + 212 (Oct. 2023 ) + -1709.8 (Jan. 2024 ) = $-998 Mil.
Dollar Tree's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2024 was 752 (Apr. 2023 ) + 171.8 (Jul. 2023 ) + 505.8 (Oct. 2023 ) + 1254.9 (Jan. 2024 ) = $2,685 Mil.
Dollar Tree's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2024 was -352.7 (Apr. 2023 ) + -428.3 (Jul. 2023 ) + -541.3 (Oct. 2023 ) + -785.3 (Jan. 2024 ) = $-2,108 Mil.
* 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.
Dollar Tree (NAS:DLTR) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Jan. 2024, Dollar Tree has a Sloan Ratio of -7.15%, indicating the company is in the safe zone and there is no funny business with accruals.
Dollar Tree Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Dollar Tree's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
DLTR has been successfully added to your 