Dollar General Corporation (DG)

Days of inventory on hand (DOH)

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Feb 2, 2024	Jan 31, 2024	Nov 3, 2023	Oct 31, 2023	Aug 4, 2023	Jul 31, 2023	May 5, 2023	Apr 30, 2023	Feb 3, 2023	Jan 31, 2023	Oct 31, 2022	Oct 28, 2022	Jul 31, 2022	Jul 29, 2022	Apr 30, 2022	Apr 29, 2022
Inventory turnover		4.30	4.33	4.39	4.74	4.66	4.64	4.35	3.96	3.80	3.82	3.97	3.99	4.68	4.25	4.23	4.15	4.17	4.11	4.57	4.55
DOH	days	84.98	84.26	83.05	76.99	78.30	78.74	83.91	92.19	96.02	95.46	92.01	91.41	78.00	85.86	86.36	88.01	87.57	88.88	79.85	80.18

January 31, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.30
= 84.98

To analyze Dollar General Corporation's days of inventory on hand (DOH) based on the provided data, we observe fluctuations in the DOH metric over multiple reporting periods. DOH is a key ratio that measures the average number of days a company holds its inventory before selling it.

From April 29, 2022, to January 31, 2025, Dollar General's DOH ranged from a low of 76.99 days to a high of 96.02 days. This indicates varying levels of efficiency in managing inventory during different periods. A lower DOH suggests the company is selling inventory quickly, while a higher DOH may imply sluggish sales or potential excess inventory.

It is important to note that fluctuations in DOH can be influenced by various factors, including seasonality, demand trends, supply chain disruptions, and inventory management practices. In the case of Dollar General, the trend shows some fluctuations but generally hovers around an average of 85 days.

Analyzing DOH alongside other financial ratios and operational metrics can provide a more comprehensive understanding of Dollar General's overall performance and effectiveness in managing its inventory levels efficiently. Further evaluation and comparison with industry benchmarks or historical data would offer valuable insights into the company's inventory management practices and potential implications for its financial performance.