Dollar General Corporation (DG)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	38,447,860	38,794,560	38,593,980	38,264,760	37,633,610	36,118,450	35,185,880	34,414,030	34,062,920	33,864,500	33,545,190	33,579,340	33,667,220	32,410,340	31,242,400	29,579,230	27,753,960	27,246,130	26,672,200	26,133,760
Property, plant and equipment	US$ in thousands	6,087,720	5,848,380	5,624,130	5,420,130	5,236,310	4,927,450	4,648,190	4,451,030	4,346,130	4,177,870	4,104,190	3,999,170	3,900,000	3,701,780	3,521,000	3,320,140	3,278,360	3,131,070	3,020,410	3,008,420
Fixed asset turnover		6.32	6.63	6.86	7.06	7.19	7.33	7.57	7.73	7.84	8.11	8.17	8.40	8.63	8.76	8.87	8.91	8.47	8.70	8.83	8.69

February 2, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $38,447,860K ÷ $6,087,720K
= 6.32

The fixed asset turnover ratio measures how efficiently a company is using its fixed assets to generate sales. A higher ratio indicates that the company is generating more revenue per dollar of fixed assets, which is generally favorable.

Analyzing Dollar General Corporation's fixed asset turnover over multiple periods reveals a consistent and generally increasing trend. The ratio has consistently remained above 6.00, indicating that the company is effectively utilizing its fixed assets to generate sales.

The ratio has been steadily increasing over the periods, from 6.32 in February 2, 2024, to 8.69 in May 3, 2019, before experiencing a slight decrease to 8.47 in January 31, 2020. Subsequently, there was some fluctuation, but overall the trend has been upward.

This increasing trend in fixed asset turnover suggests that Dollar General Corporation has been effectively managing and utilizing its fixed assets to drive sales growth over the analyzed periods. It also indicates operational efficiency and effective asset utilization within the company's business operations.