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Dollar Tree Inc  (NAS:DLTR) Interest Coverage: N/A (As of Jul. 2017)

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. Dollar Tree Inc's Operating Income for the three months ended in Jul. 2017 was $420 Mil. Dollar Tree Inc's Interest Expense for the three months ended in Jul. 2017 was $0 Mil. GuruFocus does not calculate 's interest coverage with the available data. The higher the ratio, the stronger the company's financial strength is.

NAS:DLTR' s Interest Coverage Range Over the Past 10 Years
Min: 1.75   Max: 328.61
Current: 2.36

1.75
328.61

NAS:DLTR's Interest Coverage is ranked lower than
92% of the 331 Companies
in the Global industry.

( Industry Median: 18.52 vs. NAS:DLTR: 2.36 )

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


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Dollar Tree Inc Annual Data

Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 328.61 63.01 12.99 1.75 4.54

Dollar Tree Inc Quarterly Data

Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only N/A N/A 0.89 5.20 N/A

Competitive Comparison
* 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.


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.


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 Inc's Interest Coverage for the fiscal year that ended in Jan. 2017 is calculated as

Here, for the fiscal year that ended in Jan. 2017, Dollar Tree Inc's Interest Expense was $-376 Mil. Its Operating Income was $1,705 Mil. And its Long-Term Debt & Capital Lease Obligation was $6,170 Mil.

Interest Coverage=-1*Operating Income (A: Jan. 2017 )/Interest Expense (A: Jan. 2017 )
=-1*1704.8/-375.5
=4.54

Dollar Tree Inc's Interest Coverage for the quarter that ended in Jul. 2017 is calculated as

Here, for the three months ended in Jul. 2017, Dollar Tree Inc's Interest Expense was $0 Mil. Its Operating Income was $420 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,595 Mil.

GuruFocus does not calculate Dollar Tree Inc's interest coverage with the available data.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

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


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 .


Related Terms


Headlines

From the Internet

Stock Market News For Nov 21, 2017

- Zacks 2017-11-21 09:11:00

Dollar Tree earnings and sales beat expectations

- MarketWatch 2017-11-21 07:56:00

Is It Worth Shopping on Thanksgiving Day?

- theStreet 2017-11-20 14:58:00

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