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.