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Dollar Tree Altman Z-Score

: 3.65 (As of Today)
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Good Sign:

Altman Z-score of 3.65 is strong.

Dollar Tree has a Altman Z-Score of 3.65, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Dollar Tree's Altman Z-Score or its related term are showing as below:

DLTR' s Altman Z-Score Range Over the Past 10 Years
Min: 1.83   Med: 7.2   Max: 17.53
Current: 3.65

During the past 13 years, Dollar Tree's highest Altman Z-Score was 17.53. The lowest was 1.83. And the median was 7.20.


Dollar Tree Altman Z-Score Historical Data

The historical data trend for Dollar Tree's Altman Z-Score 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
Altman Z-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.08 3.74 2.67 3.02 3.25

Dollar Tree Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
Altman Z-Score 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 2.79 3.05 3.00 3.25 3.60

Competitive Comparison

For the Discount Stores subindustry, Dollar Tree's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution

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

* The bar in red indicates where Dollar Tree's Altman Z-Score falls into.



Dollar Tree Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Dollar Tree's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.0891+1.4*0.3149+3.3*0.0904+0.6*2.6732+1.0*1.1954
=3.65

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Apr. 2022:
Total Assets was $22,372 Mil.
Total Current Assets was $6,282 Mil.
Total Current Liabilities was $4,290 Mil.
Retained Earnings was $7,044 Mil.
Pre-Tax Income was 697.5 + 499.2 + 276.9 + 369.2 = $1,843 Mil.
Interest Expense was -34 + -79.5 + -33.4 + -33 = $-180 Mil.
Revenue was 6902.6 + 7080.6 + 6417.7 + 6343.2 = $26,744 Mil.
Market Cap (Today) was $37,775 Mil.
Total Liabilities was $14,131 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(6282.3 - 4289.9)/22372.3
=0.0891

X2=Retained Earnings/Total Assets
=7044/22372.3
=0.3149

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(1842.8 - -179.9)/22372.3
=0.0904

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=37774.816/14130.8
=2.6732

X5=Revenue/Total Assets
=26744.1/22372.3
=1.1954

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Dollar Tree has a Altman Z-Score of 3.65 indicating it is in Safe Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Dollar Tree  (NAS:DLTR) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Dollar Tree Altman Z-Score Related Terms

Thank you for viewing the detailed overview of Dollar Tree's Altman Z-Score 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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