The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Dollar Tree's quick ratio for the quarter that ended in Jan. 2024 was 0.22.
Dollar Tree has a quick ratio of 0.22. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Dollar Tree's Quick Ratio or its related term are showing as below:
DLTR'
s Quick Ratio Range Over the Past 10 Years
Min: 0.21 Med: 0.4 Max: 1.11
Current: 0.22
During the past 13 years, Dollar Tree's highest Quick Ratio was 1.11. The lowest was 0.21. And the median was 0.40.
DLTR's Quick Ratio is ranked worse than 94.29% of 315
companies
in the Retail - Defensive industry
Industry Median: 0.89
vs DLTR: 0.22
Dollar Tree Quick Ratio Historical Data
The historical data trend for Dollar Tree's Quick 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
Quick Ratio
0.21
0.44
0.30
0.22
0.22
Dollar Tree Quarterly Data
Apr19
Jul19
Oct19
Jan20
Apr20
Jul20
Oct20
Jan21
Apr21
Jul21
Oct21
Jan22
Apr22
Jul22
Oct22
Jan23
Apr23
Jul23
Oct23
Jan24
Quick Ratio
0.22
0.28
0.20
0.17
0.22
Competitive Comparison
For the Discount Stores subindustry, Dollar Tree's Quick Ratio, along with its competitors' market caps and Quick 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 Quick Ratio Distribution
For the Retail - Defensive industry and Consumer Defensive sector, Dollar Tree's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Dollar Tree's Quick Ratio falls into.
Dollar Tree Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Dollar Tree's Quick Ratio for the fiscal year that ended in Jan. 2024 is calculated as
* 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) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Dollar Tree Quick Ratio Related Terms
Thank you for viewing the detailed overview of Dollar Tree's Quick 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.
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