By analyzing existing basic indicators between Dollar Tree and Boqii, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Boqii with a short position in Dollar Tree. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Dollar Tree has an asset utilization ratio of 121.18 percent. This connotes that the company is making $1.21 for each dollar of assets. An increasing asset utilization means that Dollar Tree is more efficient with each dollar of assets it utilizes for everyday operations.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in Dollar Tree. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its
performance over time. Several factors influence the investment perspective on Dollar Tree, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.
How important is Dollar Tree's Liquidity
Dollar Tree
financial leverage refers to using borrowed capital as a funding source to finance Dollar Tree ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Dollar Tree financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Dollar Tree's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Dollar Tree's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Dollar Tree's total debt and its cash.
Dollar Tree Gross Profit
Dollar Tree Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Dollar Tree previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Dollar Tree Gross Profit growth over the last 10 years. Please check Dollar Tree's
gross profit and other
fundamental indicators for more details.
Detailed Perspective On Dollar Tree
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Now, let's check Dollar Tree revenue. Based on the latest financial disclosure, Dollar Tree reported 26.32
B of revenue. This is 77.19% higher than that of the Multiline Retail sector and 70.4% lower than that of the
Consumer Discretionary industry. The revenue for all United States stocks is 178.98% lower than that of the entity. As for Boqii HoldingLtd we see revenue of 1.19
B, which is 98.67% lower than that of the Consumer Discretionary
| Dollar | 26.32 Billion |
| Sector | 9.43 Billion |
| Boqii | 1.19 Billion |
Some Dollar technical indicators suggest correction
Dollar Tree information ratio is up to 0.0. Dollar Tree exhibits very low volatility with skewness of -0.18 and kurtosis of 0.05. However, we advise investors to further study Dollar Tree technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Dollar Tree's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Dollar Tree's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Final Perspective on Dollar Tree
When is the right time to buy or sell Dollar Tree? Buying stocks such as Dollar Tree isn't very hard. However, what challenging for most investors is doing it at the right time. Proper
market timing is something most people cannot do without
sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
To conclude, as of the 1st of March 2023, we believe that at this point, Dollar Tree is very steady with
low probability of distress within the next 2 years. From a slightly different point of view, the entity appears to be
undervalued. Our current 90 days buy vs. sell advice on the enterprise is
Buy.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Dollar Tree. Please refer to our
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