Dollar General Corporation (DG)
Fixed asset turnover
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 38,364,800 | 37,633,600 | 34,062,900 | 33,596,500 | 27,653,400 |
| Property, plant and equipment | US$ in thousands | 6,087,720 | 5,236,310 | 4,346,130 | 3,900,000 | 3,278,360 |
| Fixed asset turnover | 6.30 | 7.19 | 7.84 | 8.61 | 8.44 |
February 2, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $38,364,800K ÷ $6,087,720K
= 6.30
Dollar General Corporation's fixed asset turnover ratio has shown a declining trend over the past five years, decreasing from 8.44 in January 2020 to 6.30 in February 2024. This indicates that the company is generating less revenue per dollar invested in fixed assets. The decrease in fixed asset turnover could be a sign of inefficiencies in asset utilization or a shift towards a higher proportion of fixed assets relative to sales. Further investigation into the reasons behind this declining trend is recommended to assess the overall operational efficiency and capital utilization of Dollar General Corporation.
Peer comparison
Feb 2, 2024