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Dollar Tree (NAS:DLTR) Profitability Rank

: 7 (As of Oct. 2023)
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Dollar Tree has the Profitability Rank of 7.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

Dollar Tree's Operating Margin % for the quarter that ended in Oct. 2023 was 4.12%. As of today, Dollar Tree's Piotroski F-Score is 6.


Competitive Comparison

For the Discount Stores subindustry, Dollar Tree's Profitability Rank, along with its competitors' market caps and Profitability Rank 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 Profitability Rank Distribution

For the Retail - Defensive industry and Consumer Defensive sector, Dollar Tree's Profitability Rank distribution charts can be found below:

* The bar in red indicates where Dollar Tree's Profitability Rank falls into.



Dollar Tree Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Dollar Tree has the Profitability Rank of 7.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Dollar Tree's Operating Margin % for the quarter that ended in Oct. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Oct. 2023 ) / Revenue (Q: Oct. 2023 )
=301.7 / 7314.8
=4.12 %

* 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.

2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Dollar Tree has an F-score of 6 indicating the company's financial situation is typical for a stable company.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Warning Sign:

Dollar Tree Inc operating margin has been in a 5-year decline. The average rate of decline per year is -2.8%.

4. Consistency of the profitability

5. Predictability Rank


Dollar Tree Profitability Rank Related Terms

Thank you for viewing the detailed overview of Dollar Tree's Profitability Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


Dollar Tree (NAS:DLTR) Business Description

Traded in Other Exchanges
Address
500 Volvo Parkway, Chesapeake, VA, USA, 23320
Dollar Tree operates discount stores across the United States and Canada, with over 8,100 shops under its namesake banner and nearly 8,300 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.
Executives
Jonathan Leiken officer: Chief Legal Officer C/O DIEBOLD, INCORPORATED, 5995 MAYFAIR RD., NORTH CANTON OH 44720
Diane Randolph director 1500 SOLANA BLVD, SUITE 3400, WESTLAKE TX 76262
Michael J Kindy officer: Chief Supply Chain Officer 100 MISSION RIDGE, GOODLETTSVILLE TN 37072
Janet Dhillon officer: Chief Legal Officer 111 W RIO SALADO PARKWAY, TEMPE AZ 85281
Creedon Michael C Jr officer: Chief Operating Officer 833 KEITH ROAD, WAKE FOREST NC 27587
Jeffrey A. Davis officer: Chief Financial Officer 1200 WILSON DRIVE, WEST CHESTER PA 19380
Robert Aflatooni officer: Chief Information Officer DOLLAR TREE, INC., 500 VOLVO PARKWAY, CHESAPEAKE VA 23328
John W Flanigan 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
Mr Cobalt Advisor Llc other: Director by deputization 712 FIFTH AVENUE, 17TH FLOOR, NEW YORK NY 10019
Mary A Laschinger director 400 ATLANTIC STREET, STAMFORD CT 06921
Cheryl W Grise director NORTHEAST UTILITIES, 107 SELDEN STREET, BERLIN CT 06037
Richard W Dreiling director, other: Executive Chairman C/O SAFEWAY INC, 5918 STONERIDGE MALL ROAD, PLEASANTON CA 94588
Daniel J Heinrich director CLOROX CO, 1221 BROADWAY, OAKLAND CA 94612