Dollar Tree Return On Equity vs. Return On Asset

DLTR Stock  USD 133.15  0.65  0.49%   
Based on the measurements of profitability obtained from Dollar Tree's financial statements, Dollar Tree is performing exceptionally good at the moment. It has a great risk to showcase excellent profitability results in April. Profitability indicators assess Dollar Tree's ability to earn profits and add value for shareholders.

Dollar Tree Return On Equity

0.18

At this time, Dollar Tree's Price To Sales Ratio is relatively stable compared to the past year. As of 03/29/2024, Price Sales Ratio is likely to grow to 1.23, while Operating Cash Flow Sales Ratio is likely to drop 0.08. At this time, Dollar Tree's Operating Income is relatively stable compared to the past year. As of 03/29/2024, Net Income Applicable To Common Shares is likely to grow to about 2 B, though Accumulated Other Comprehensive Income is likely to grow to (41.4 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.360.3042
Fairly Up
Slightly volatile
Operating Profit Margin0.10.0228
Way Up
Slightly volatile
For Dollar Tree profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Dollar Tree to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Dollar Tree utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Dollar Tree's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Dollar Tree over time as well as its relative position and ranking within its peers.
  
Check out Investing Opportunities.
To learn how to invest in Dollar Stock, please use our How to Invest in Dollar Tree guide.
Is Dollar Tree's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Dollar Tree. If investors know Dollar will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Dollar Tree listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.19)
Earnings Share
(4.55)
Revenue Per Share
139.425
Quarterly Revenue Growth
0.119
Return On Assets
0.0498
The market value of Dollar Tree is measured differently than its book value, which is the value of Dollar that is recorded on the company's balance sheet. Investors also form their own opinion of Dollar Tree's value that differs from its market value or its book value, called intrinsic value, which is Dollar Tree's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Dollar Tree's market value can be influenced by many factors that don't directly affect Dollar Tree's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Dollar Tree's value and its price as these two are different measures arrived at by different means. Investors typically determine if Dollar Tree is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Dollar Tree's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Dollar Tree Return On Asset vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Dollar Tree's current stock value. Our valuation model uses many indicators to compare Dollar Tree value to that of its competitors to determine the firm's financial worth.
Dollar Tree is rated # 4 in return on equity category among related companies. It is one of the top stocks in return on asset category among related companies . At this time, Dollar Tree's Return On Equity is relatively stable compared to the past year.. Comparative valuation analysis is a catch-all model that can be used if you cannot value Dollar Tree by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Dollar Tree's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Dollar Tree's earnings, one of the primary drivers of an investment's value.

Dollar Return On Asset vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Dollar Tree

Return On Equity

 = 

Net Income

Total Equity

 = 
-0.12
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Dollar Tree

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0498
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

Dollar Return On Asset Comparison

Dollar Tree is currently under evaluation in return on asset category among related companies.

Dollar Tree Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Dollar Tree, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Dollar Tree will eventually generate negative long term returns. The profitability progress is the general direction of Dollar Tree's change in net profit over the period of time. It can combine multiple indicators of Dollar Tree, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2024
Accumulated Other Comprehensive Income-43.6 M-41.4 M
Operating Income698.7 M847 M
Income Before Tax-988.7 M-939.3 M
Total Other Income Expense Net-1.7 B-1.6 B
Net Loss-998.4 M-948.5 M
Income Tax Expense9.7 M9.2 M
Net Income Applicable To Common Shares1.9 BB
Net Loss-998.4 M-948.5 M
Non Operating Income Net Other-360 K-342 K
Interest Income539.5 M479.5 M
Net Interest Income-106.8 M-112.1 M
Change To Netincome336.4 M205.3 M
Net Income Per E B T 1.01  0.62 

Dollar Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Dollar Tree. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Dollar Tree position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Dollar Tree's important profitability drivers and their relationship over time.

Use Dollar Tree in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Dollar Tree position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dollar Tree will appreciate offsetting losses from the drop in the long position's value.

Dollar Tree Pair Trading

Dollar Tree Pair Trading Analysis

The ability to find closely correlated positions to Dollar Tree could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Dollar Tree when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Dollar Tree - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Dollar Tree to buy it.
The correlation of Dollar Tree is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Dollar Tree moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Dollar Tree moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Dollar Tree can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Dollar Tree position

In addition to having Dollar Tree in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Manufacturing Thematic Idea Now

Manufacturing
Manufacturing Theme
Companies that provide goods across residential, commercial and industrial construction such as machinery, tools, or lumber production. The Manufacturing theme has 20 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Manufacturing Theme or any other thematic opportunities.
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When determining whether Dollar Tree is a strong investment it is important to analyze Dollar Tree's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Dollar Tree's future performance. For an informed investment choice regarding Dollar Stock, refer to the following important reports:
Check out Investing Opportunities.
To learn how to invest in Dollar Stock, please use our How to Invest in Dollar Tree guide.
You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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When running Dollar Tree's price analysis, check to measure Dollar Tree's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Dollar Tree is operating at the current time. Most of Dollar Tree's value examination focuses on studying past and present price action to predict the probability of Dollar Tree's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Dollar Tree's price. Additionally, you may evaluate how the addition of Dollar Tree to your portfolios can decrease your overall portfolio volatility.
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To fully project Dollar Tree's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Dollar Tree at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Dollar Tree's income statement, its balance sheet, and the statement of cash flows.
Potential Dollar Tree investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Dollar Tree investors may work on each financial statement separately, they are all related. The changes in Dollar Tree's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Dollar Tree's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.