The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Dollar Tree's current ratio for the quarter that ended in Apr. 2022 was 1.46.
Dollar Tree has a current ratio of 1.46. It generally indicates good short-term financial strength.
The historical rank and industry rank for Dollar Tree's Current Ratio or its related term are showing as below:
DLTR'
s Current Ratio Range Over the Past 10 Years
Min: 1.06 Med: 2.22 Max: 9.2
Current: 1.46
During the past 13 years, Dollar Tree's highest Current Ratio was 9.20. The lowest was 1.06. And the median was 2.22.
DLTR's Current Ratio is ranked better than 59.6% of 302
companies
in the Retail - Defensive industry
Industry Median: 1.33
vs DLTR: 1.46
Dollar Tree Current Ratio Historical Data
The historical data trend for Dollar Tree's Current 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
Jan13
Jan14
Jan15
Jan16
Jan17
Jan18
Jan19
Jan20
Jan21
Jan22
Current Ratio
1.60
2.05
1.20
1.35
1.34
Dollar Tree Quarterly Data
Jul17
Oct17
Jan18
Apr18
Jul18
Oct18
Jan19
Apr19
Jul19
Oct19
Jan20
Apr20
Jul20
Oct20
Jan21
Apr21
Jul21
Oct21
Jan22
Apr22
Current Ratio
1.36
1.25
1.25
1.34
1.46
Competitive Comparison
For the Discount Stores subindustry, Dollar Tree's Current Ratio, along with its competitors' market caps and Current 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 Current Ratio Distribution
For the Retail - Defensive industry and Consumer Defensive sector, Dollar Tree's Current Ratio distribution charts can be found below:
* The bar in red indicates where Dollar Tree's Current Ratio falls into.
Dollar Tree Current Ratio Calculation
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
Dollar Tree's Current Ratio for the fiscal year that ended in Jan. 2022
* 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) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Dollar Tree Current Ratio Related Terms
Thank you for viewing the detailed overview of Dollar Tree's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Dollar Tree operates discount stores in the U.S. and Canada, including over 7,800 shops under both its namesake and Family Dollar units (nearly 15,700 in total). The eponymous chain features branded and private-label goods, generally at a $1.25 price. Nearly 50% of Dollar Tree stores' fiscal 2020 sales came from consumables (including food, health and beauty, and household paper and cleaning products), just over 45% from variety items (including toys and housewares), and 5% from seasonal goods. Family Dollar features branded and private-label goods at prices generally ranging from $1 to $10, with over 76% of fiscal 2020 sales from consumables, 9% from seasonal/electronic items (including prepaid phones and toys), 9% from home products, and 6% from apparel and accessories.
My Portfolios
Create New Portfolio
Portfolio Contest
My Gurus
Personalize
Premium Gurus 
0.83(0.5%) Volume: 1,686,902 11:08PM EDT
Email Alerts
Stock PDF
RSS
Website
Filings
Download
Manual of Stocks™ Web APP
NAS:DLTR has been successfully added to your 
