Dollar General Corporation (DG)

Days of sales outstanding (DSO)

		Feb 2, 2024	Nov 3, 2023	Aug 4, 2023	May 5, 2023	Feb 3, 2023	Oct 28, 2022	Jul 29, 2022	Apr 29, 2022	Jan 28, 2022	Oct 29, 2021	Jul 30, 2021	Apr 30, 2021	Jan 29, 2021	Oct 30, 2020	Jul 31, 2020	May 1, 2020	Jan 31, 2020	Nov 1, 2019	Aug 2, 2019	May 3, 2019
Receivables turnover		342.48	196.37	254.36	—	277.18	192.04	377.19	1,024.96	349.74	281.33	264.11	2,018.35	370.95	291.62	863.62	—	362.62	—	—	—
DSO	days	1.07	1.86	1.43	—	1.32	1.90	0.97	0.36	1.04	1.30	1.38	0.18	0.98	1.25	0.42	—	1.01	—	—	—

February 2, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 342.48
= 1.07

Analyzing Dollar General Corporation's Days of Sales Outstanding (DSO) over the past several periods reveals some interesting trends. DSO represents the average number of days it takes for the company to collect revenue after a sale is made.

The DSO figures ranged from as low as 0.18 days to as high as 1.90 days. Lower DSO values indicate that Dollar General is efficiently collecting payments from its customers, which is a positive sign for the company's liquidity and cash flow management. Higher DSO values could suggest potential issues with collections efficiency or credit terms offered to customers.

Overall, Dollar General has maintained relatively low DSO figures, with most periods falling below 1.5 days. This consistency indicates that the company has been successful in managing its accounts receivable and converting sales into cash quickly.

However, the absence of DSO data for certain periods raises questions about the completeness of the data or potential fluctuations in collection processes. It would be beneficial for Dollar General to ensure consistent and accurate reporting of DSO metrics to track and evaluate its collection efficiency effectively.

In conclusion, Dollar General's DSO performance reflects strong management of accounts receivable and efficient cash flow processes, with opportunities to further optimize collections strategies for enhanced financial performance.