Dollar General Corporation (DG)

Days of sales outstanding (DSO)

		Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020
Receivables turnover		341.74	277.18	349.74	370.17	361.31
DSO	days	1.07	1.32	1.04	0.99	1.01

February 2, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 341.74
= 1.07

The Days of Sales Outstanding (DSO) is a measure used to assess how quickly a company is able to collect its accounts receivables. A lower DSO indicates that the company is collecting payments from its customers more quickly.

Analyzing Dollar General Corporation's DSO over the past five fiscal years, we observe a fluctuating trend. The DSO for the most recent fiscal year, ending on February 2, 2024, was recorded at 1.07 days, which is lower compared to the previous year's DSO of 1.32 days. This suggests that Dollar General Corporation improved its accounts receivable collection efficiency from the prior year.

Examining further historical data, Dollar General Corporation had a DSO of 1.04 days in fiscal year 2022, 0.99 days in fiscal year 2021, and 1.01 days in fiscal year 2020. These figures indicate that the company has generally maintained a relatively low DSO over the past five years, with minor fluctuations.

Overall, the downward trend in DSO from the previous year implies that Dollar General Corporation has been successful in managing its accounts receivables efficiently and collecting payments more promptly. This may indicate effective credit policies and strong relationships with customers, contributing to the company's financial stability and liquidity position.