Is Dollar Tree Making Money?

What Dollar Tree is borrowing against is unclear because its cash and assets are limited. Dollar Tree’s assets were valued at just $15.827 billion on May 5, 2018. The company’s cash flow is limited and cash reserves are nonexistent.
Most likely, Dollar Tree is borrowing against its stock valuation. Dollar Tree shares were trading at $86.09 on July 16, 2018. That gave the company a Market Capitalization of $20.47 billion on the same day.
If my thesis is true, Dollar Tree would collapse if its stock lost any value. If Dollar Tree shares dropped below $60 or $50 the company might collapse because it would not be able to borrow money.

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Dollar Store Wars Heat Up

Despite that Dollar Tree’s revenues are still growing, they went from $18.41 billion in April 2016 to $20.92 billion in April 2017. That made for an increase of $2.51 billion but most of that growth can be attributed to the Family Dollar acquisition.

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