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Dollar Tree Interest Coverage

: 21.51 (As of Apr. 2022)
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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 Apr. 2022 was $732 Mil. Dollar Tree's Interest Expense for the three months ended in Apr. 2022 was $-34 Mil. Dollar Tree's interest coverage for the quarter that ended in Apr. 2022 was 21.51. 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: 9.93   Max: 328.61
Current: 11.25


DLTR's Interest Coverage is ranked better than
51.29% of 232 companies
in the Retail - Defensive industry
Industry Median: 10.99 vs DLTR: 11.25

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.

* Premium members only.

Dollar Tree Annual Data
Trend Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.69 4.83 9.72 12.82 10.13

Dollar Tree Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
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 15.75 12.19 9.30 7.28 21.51

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.


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. 2022 is calculated as

Here, for the fiscal year that ended in Jan. 2022, Dollar Tree's Interest Expense was $-179 Mil. Its Operating Income was $1,811 Mil. And its Long-Term Debt & Capital Lease Obligation was $8,563 Mil.

Interest Coverage=-1* Operating Income (A: Jan. 2022 )/Interest Expense (A: Jan. 2022 )
=-1*1811.4/-178.9
=10.13

Dollar Tree's Interest Coverage for the quarter that ended in Apr. 2022 is calculated as

Here, for the three months ended in Apr. 2022, Dollar Tree's Interest Expense was $-34 Mil. Its Operating Income was $732 Mil. And its Long-Term Debt & Capital Lease Obligation was $8,506 Mil.

Interest Coverage=-1* Operating Income (Q: Apr. 2022 )/Interest Expense (Q: Apr. 2022 )
=-1*731.5/-34
=21.51

* 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.

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 Business Description

Dollar Tree logo
Address
500 Volvo Parkway, Chesapeake, VA, USA, 23320
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.
Executives
Flanigan John W 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
Mantle Ridge Lp other: Director by deputization 712 FIFTH AVENUE, SUITE 17F NEW YORK NY 10019
Kelly Edward J Iii director CIT GROUP INC ONE CIT DRIVE LIVINGSTON NJ 07039
Hilal Paul C director MANTLE RIDGE, L.P. 712 FIFTH AVENUE, SUITE 17F NEW YORK NY 10019
Mr Cobalt Advisor Llc other: Director by deputization 712 FIFTH AVENUE, 17TH FLOOR NEW YORK NY 10019
Scott Bertram L director C/O BECTON DICKERSON & CO 1 BECTON DR FRANKLIN LAKES NJ 07417
Heinrich Daniel J director CLOROX CO 1221 BROADWAY OAKLAND CA 94612
Laschinger Mary A director 400 ATLANTIC STREET STAMFORD CT 06921
Grise Cheryl W director NORTHEAST UTILITIES 107 SELDEN STREET BERLIN CT 06037
Dreiling Richard W director, other: Executive Chairman C/O SAFEWAY INC 5918 STONERIDGE MALL ROAD PLEASANTON CA 94588
Hulett Jennifer officer: Chief Human Resources Officer 1500 SOLANA BLVD. SUITE 3400 WESTLAKE TX 76262
Alasdair James officer: EVP Merch and Supply Chain 100 PIER 1 PLACE FORT WORTH TX 76102
Park Winifred director 1 EXPRESS DRIVE COLUMBUS OH 43230
Lech Michael officer: Chief Logistics Officer 500 VOLVO PARKWAY CHESAPEAKE VA 23320

Dollar Tree Headlines

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