Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Dollar Tree's annualizedNet Income for the quarter that ended in Oct. 2024 was $933 Mil. Dollar Tree's average total tangible assets for the quarter that ended in Oct. 2024 was $19,912 Mil. Therefore, Dollar Tree's annualized Return-on-Tangible-Asset for the quarter that ended in Oct. 2024 was 4.69%.
The historical rank and industry rank for Dollar Tree's Return-on-Tangible-Asset or its related term are showing as below:
DLTR'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -20.33 Med: 8.58 Max: 22.95
Current: -5.39
During the past 13 years, Dollar Tree's highest Return-on-Tangible-Asset was 22.95%. The lowest was -20.33%. And the median was 8.58%.
DLTR's Return-on-Tangible-Asset is ranked worse than 88.96% of 317
companies
in the Retail - Defensive industry
Industry Median: 4.34
vs DLTR: -5.39
Dollar Tree Return-on-Tangible-Asset Historical Data
The historical data trend for Dollar Tree's Return-on-Tangible-Asset 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.
Competitive Comparison of Dollar Tree's Return-on-Tangible-Asset
For the Discount Stores subindustry, Dollar Tree's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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's Return-on-Tangible-Asset Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Dollar Tree's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Dollar Tree's Return-on-Tangible-Asset falls into.
Dollar Tree Return-on-Tangible-Asset Calculation
Dollar Tree's annualized Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Oct. 2024) net income data.
Dollar Tree (NAS:DLTR) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Dollar Tree Return-on-Tangible-Asset Related Terms
Thank you for viewing the detailed overview of Dollar Tree's Return-on-Tangible-Asset 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 8,600 shops under its namesake banner and nearly 7,800 under Family Dollar. About 47% of Dollar Tree's sales in fiscal 2023 were composed of consumables (including food, health and beauty, and cleaning products), around 45% 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 (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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