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Running Head: DOLLAR TREE 1MBA 7200 Financial Analysis Paper: Dollar Tree StoresRokiatou Dembele09-10-2018Wilmington University
DOLLAR TREE 2MBA 7200 Financial Analysis Paper: Dollar Tree StoresDollar Tree store, Inc., precisely known as only 1$ store, is an American chain of discount variety store that sells items for 1$ or less, the Dollar store was founded in 1932 Headquartered in Chesapeake, Virginia, it is a Fortune 150 company and operates 14,835 stores throughout the 48 contiguous U.S and Canada. In 2010 the corporation open its 4,000thchain store and acquired 86 Canadian dollar store which are based in Vancouver, British Colombia; The store is operate British Colombia, Ontario, Alberta, and Saskatchewan. These are the first retail locations outsides of the United States operated by Dollar tree. The company operates under two different Stores: One-Dollar store under the name Dollar Tree and a multi-price store under Family Dollar (Variety Store, 2018). On July 6, 2015, the company completed the purchase of Family dollar Stores, Inc, and its more than 8,200 stores.This transformational transaction created the largest discount retailer in North America.Dollar tree competes in low-end retail markets and dollar store. All dollar tree stocks a variety of products including national, regional and private-label brands; The different products found in a dollar tree store include:Consumable merchandise, which includes candy and food, health and beauty care, and everyday consumables such as household paper and chemical, and in select stores, frozenand refrigerated food;Variety merchandise, which include toys, durable housewares, gift, stationery, party goods, greeting cards, soft lines, and other items;Seasonal goods, which includes, among others, Valentine’s day, Easter, Halloween and Christmas merchandise (Brock, 2017).
DOLLAR TREE 3Fiscal year ended February 3, 2018 compared to fiscal year ended January 28, 2017Net sales:Net sales increased 7.4% or $1,526.3m, in 2017 compared to 2016, resulting from sales in new Dollar Tree and Family Dollar Stores, raised comparable Store net sales and the 53rdweek in 2017, which accounted for $406.6m of the increased.Net income:Operating incomefor 2017 increased to $1,999.1m in 2017 compared with 1,704.8m in 2016 and the operating margin increased to 9.0% in 2017 from 8.2% in 2016; the interestexpense, net was $301.8m in 2017 compared to $375.5 m in 2016. The decrease is due tolower debt outstanding in the current year because of $990.1m in prepayments in third and fourthquarters of 2016 as well as the $500m in the second quarter of 2017; income taxesrate in 2017 was a benefit of 0.6% compared to expense of $32.6% in 2016. The decrease is due to the TCJA that was signed into law on December 22, 2017, which lowered the federal corporate tax rate from 35% to 21%. The effective tax rate also includes a $562.0m benefit resulting from the re-measurement of our net deferred tax liabilities to reflect he lower statutory federal rate of 21%.

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Term
Spring
Professor
NoProfessor
Tags
Generally Accepted Accounting Principles, Variety store, Dollar Tree, Variety stores, Dollar Tree Inc

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