Dollar Tree Company Income Statement

Dollar Tree company financials consist of an evaluation on the company’s income statement, balance sheet, cash flow and financial ratios. For this portion of the paper, we will assess the company’s financial ratios starting with the year 2012 and ending with the year 2016. The purpose of this assessment is to determine the company’s position in the market and to strategize a plan based off the results. This analysis, includes selected financial ratios such as current ratio, liquidity ratio, profitability ratio and asset turnover ratio. The results can be found in Appendix E. Since the beginning of time, Dollar Tree has always acquired other dollar priced stores. In 2015, the company acquired Family Dollar. According to their website, “The

For example, form the figures given above, the company experienced successful growth in liquidity and profitability. However, “In the first, second and third quarters of 2015, net income (loss) and diluted net income (loss) per share were reduced by the costs related to the acquisition noted above. In addition to the costs noted, gross profit in the second quarter of 2015 was reduced by $60.0 million of markdown expense related to sku rationalization and planned liquidations and $11.1 million related to the amortization of the stepped-up inventory sold in the quarter”(

According to their website, “It is the duty of the Board of Directors to serve as a prudent fiduciary for shareholders and to oversee the management of the Company's business. To fulfill its responsibilities and to discharge its duty, the Board of Directors follows the procedures and standards that are set forth in their guidelines” (http://www.dollartreeinfo.com/investors/). That being said, there are changes needed in regards to the company’s organizational chart. The current structure is not superior to a competitor's structure in the industry. With every shopping experience, consumers are able to recognize the understaffing, high turnover rate, poor customer service, and work not being done. To improve their organizational chart it is important that the company competes when it comes to compensation. No one wants to work for a company that is not paying at a competitive rate or giving consistent raises and benefits. As a result, the company experiences high turnover rates and understaffing. When understaffing occurs work does not get done and the store conditions and customer service diminish. Adjusting the organizational chart to included members who focus on improving these aspects can make a tremendous difference in the