Select Page
Your Perfect Assignment is Just a Click Away
We Write Custom Academic Papers

100% Original, Plagiarism Free, Customized to your instructions!






Dollar Tree Analysis of Financial Information

Student Name

Institution Affiliation

Dollar Tree Analysis of Financial Information

Most Current Year

($ millions)

% Chg (+/–)

Previous Year

($ millions)

Current Assets




Total Assets




Current Liabilities




Total Debt








Cost of Goods Sold








Net Income/Loss




Increasing and Decreasing Items

Current Assets – A positive change in current assets is a good sign since assets constitute the value of the organization (Barone, 2022). Current assets are short-term and projected to be spent within a year. A positive shift suggests that Dollar Tree is keeping its short-term economic benefit hence able to satisfy its short term obligations as they fall due.

Total Assets – A positive increase in total assets is analogous to a positive change in current assets. This positive change indicates that the company is sensibly using its resources, which is an encouraging sign (Barone, 2022). In addition, this is a good omen for Dollar Tree.

Current Liabilities – A positive shift in current obligations is often regarded as a negative development. It indicates that the entity’s short-term financial commitments are becoming more onerous to meet. This is particularly detrimental if a rise in liabilities occurs simultaneously as a rise in assets.

Debt – A positive change in total debt indicates that the amount of money owed by the entity has increased. This is a negative development since it has an impact on business partnerships. Someone who is concerned about the possibility of a firm’s bankruptcy would not want to invest in a firm with a lot of debt.

Sales/Revenue – The presence of a positive change in income is beneficial since it indicates that earnings are rising.

Cost of Goods Sold – Having a positive shift in the cost of items sold indicates that it is more expensive to manufacture things. This is detrimental to Dollar Tree since it lowers the likelihood of it making a profit.

Inventory- The presence of a positive shift in inventory implies that the firm is working to turn its inventory into cash as rapidly as it can (Amanda, 2019). This is beneficial since it might result in the organization experiencing lower expenditures for storage, maintenance and insurance.

Net income/loss- When the net income/loss account shows a negative change, it indicates that the entity’s spending is outpacing the entity’s earnings. This is detrimental to the company since it results in losses.

Calculation of Financial Ratios

· Current Ratio

Current ratio =current assets/current liabilities

= 5609 / 4177 = 1.342

A current ratio of 1.342 is good for the Dollar Tree Company. This is due to the fact that it demonstrates that the corporation has more than enough cash to pay its obligations while also utilizing its resources efficiently (Amanda, 2019).

· Debt to Asset Ratio (Debt Ratio)

Debt to asset ratio= total debt/ total assets

= 14003/ 21721 = 0.645

A debt ratio of 0.645 indicates that Dollar Tree has a higher amount of assets than debts. This is beneficial to the financial health of the organization. Dollar Tree is not dependent on debt to fund its operations, which is beneficial to the firm’s long-term success.

· Inventory Turnover

○Inventory Turnover

Inventory turnover = cost of goods sold/average inventory

= $ 18594/3897 =

An inventory turnover ratio of 4.771 implies that Dollar Tree is selling its total inventory 4.771 times in annually. Inventory turnover ratios of between five and ten are considered to be satisfactory (Amanda, 2019). A high turnover rate is a positive indicator of a company’s financial health. Dollar Tree must order items in smaller amounts and at more regular intervals so as  to boost turnover.

· Return on Sales (Profit Margin)

Return on Sales (Profit Margin)

Net profit margin = net income/sales

= 1328/26321 = 0.050 = 5%

 A profit margin of five percent is considered low, which is a terrible sign for the financial viability of Dollar Tree. In order to manufacture its items, Dollar Tree spends more money than it earns from sales of those products. If Dollar Tree continues to operate with a low net profit margin, the company will eventually go out of business.

Summary and potential problem areas

A look at Dollar Tree’s financials shows that the company is in serious difficulties. Despite the fact that Dollar Tree currently has adequate assets to meet its liabilities, the company is spending more on the selling costs of its items than it is earning from the sales of its products, resulting in a low profit margin. Dollar Tree will ultimately go bankrupt if the company’s financial situation does not improve. A strategy for Dollar Tree to lower production costs while simultaneously selling more products is required before the company can start earning a profit. The fact that Dollar Tree has seen an increase in revenue is a positive indication for the company. If Dollar Tree can find a means to minimize production costs, they will be able to boost their positive net profit margin. Dollar Tree is now in an average financial situation, but they are in a place to turn things around and put themselves in a better financial position in the future.


Amanda, R. (2019). The Impact Of Cash Turnover, Receivable Turnover, Inventory Turnover, Current Ratio And Debt To Equity Ratio On Profitability. JOURNAL OF RESEARCH IN MANAGEMENT2(2).

Barone, A. (2022). What Is an Asset?. Investopedia. Retrieved 16 April 2022, from

How it Works

  1. Clіck оn the “Place оrder tab at the tоp menu оr “Order Nоw” іcоn at the bоttоm, and a new page wіll appear wіth an оrder fоrm tо be fіlled.
  2. Fіll іn yоur paper’s іnfоrmatіоn and clіck “PRІCE CALCULATІОN” at the bоttоm tо calculate yоur оrder prіce.
  3. Fіll іn yоur paper’s academіc level, deadlіne and the requіred number оf pages frоm the drоp-dоwn menus.
  4. Clіck “FІNAL STEP” tо enter yоur regіstratіоn detaіls and get an accоunt wіth us fоr recоrd keepіng.
  5. Clіck оn “PRОCEED TО CHECKОUT” at the bоttоm оf the page.
  6. Frоm there, the payment sectіоns wіll shоw, fоllоw the guіded payment prоcess, and yоur оrder wіll be avaіlable fоr оur wrіtіng team tо wоrk оn іt.

Nоte, оnce lоgged іntо yоur accоunt; yоu can clіck оn the “Pendіng” buttоn at the left sіdebar tо navіgate, make changes, make payments, add іnstructіоns оr uplоad fіles fоr the оrder created. e.g., оnce lоgged іn, clіck оn “Pendіng” and a “pay” оptіоn wіll appear оn the far rіght оf the оrder yоu created, clіck оn pay then clіck оn the “Checkоut” оptіоn at the next page that appears, and yоu wіll be able tо cоmplete the payment.

Meanwhіle, іn case yоu need tо uplоad an attachment accоmpanyіng yоur оrder, clіck оn the “Pendіng” buttоn at the left sіdebar menu оf yоur page, then clіck оn the “Vіew” buttоn agaіnst yоur Order ID and clіck “Fіles” and then the “add fіle” оptіоn tо uplоad the fіle.

Basіcally, іf lоst when navіgatіng thrоugh the sіte, оnce lоgged іn, just clіck оn the “Pendіng” buttоn then fоllоw the abоve guіdelіnes. оtherwіse, cоntact suppоrt thrоugh оur chat at the bоttоm rіght cоrner


Payment Prоcess

By clіckіng ‘PRОCEED TО CHECKОUT’ yоu wіll be lоgged іn tо yоur accоunt autоmatіcally where yоu can vіew yоur оrder detaіls. At the bоttоm оf yоur оrder detaіls, yоu wіll see the ‘Checkоut” buttоn and a checkоut іmage that hіghlіght pоssіble mоdes оf payment. Clіck the checkоut buttоn, and іt wіll redіrect yоu tо a PayPal page frоm where yоu can chооse yоur payment оptіоn frоm the fоllоwіng;

  1. Pay wіth my PayPal accоunt‘– select thіs оptіоn іf yоu have a PayPal accоunt.
  2. Pay wіth a debіt оr credіt card’ or ‘Guest Checkout’ – select thіs оptіоn tо pay usіng yоur debіt оr credіt card іf yоu dоn’t have a PayPal accоunt.
  3. Dо nоt fоrget tо make payment sо that the оrder can be vіsіble tо оur experts/tutоrs/wrіters.


Custоmer Suppоrt

Order Solution Now