Dollar Tree (BSP:DLTR34) Inventory Turnover : 1.09 (As of Jan. 2024)

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What is Dollar Tree Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Dollar Tree's Cost of Goods Sold for the three months ended in Jan. 2024 was R$28,828 Mil. Dollar Tree's Average Total Inventories for the quarter that ended in Jan. 2024 was R$26,515 Mil. Dollar Tree's Inventory Turnover for the quarter that ended in Jan. 2024 was 1.09.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Dollar Tree's Days Inventory for the three months ended in Jan. 2024 was 83.93.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Dollar Tree's Inventory-to-Revenue for the quarter that ended in Jan. 2024 was 0.62.

Dollar Tree Inventory Turnover Historical Data

The historical data trend for Dollar Tree's Inventory Turnover 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.

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Dollar Tree Inventory Turnover Chart

Dollar Tree Annual Data

Trend

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

Jan22

Jan23

Jan24

Inventory Turnover

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4.94

5.76

4.83

3.84

3.92

Dollar Tree Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Inventory Turnover	Get a 7-Day Free Trial															0.95	0.95	0.97	0.97	1.09

Dollar Tree Inventory Turnover Calculation

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

	Inventory Turnover (A: Jan. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Jan. 2024 )	/ (	(Total Inventories (A: Jan. 2023 )	+	Total Inventories (A: Jan. 2024 ))	/	count )
=	104619.95	/ (	(28293.855	+	25145.773)	/	2 )
=	104619.95	/	26719.814
=	3.92

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

	Inventory Turnover (Q: Jan. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Jan. 2024 )	/ (	(Total Inventories (Q: Oct. 2023 )	+	Total Inventories (Q: Jan. 2024 ))	/	count )
=	28827.537	/ (	(27883.794	+	25145.773)	/	2 )
=	28827.537	/	26514.7835
=	1.09

Dollar Tree (BSP:DLTR34) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Dollar Tree's Days Inventory for the three months ended in Jan. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Jan. 2024 )	/	Cost of Goods Sold (Q: Jan. 2024 )	*	Days in Period
	=	26514.7835	/	28827.537	*	365 / 4
	=	83.93

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Dollar Tree's Inventory to Revenue for the quarter that ended in Jan. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Jan. 2024 )	/	Revenue (Q: Jan. 2024 )
	=	26514.7835	/	42492.756
	=	0.62

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Dollar Tree Inventory Turnover Related Terms

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Dollar Tree (BSP:DLTR34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Dollar Tree Inc (BSP:DLTR34) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

DLTR:USA DLTR:Mexico 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.

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