Dollar General Corporation (DG)
Inventory turnover
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 36,252,000 | 34,518,700 | 31,002,400 | 30,194,800 | 25,455,300 |
| Inventory | US$ in thousands | 6,994,270 | 6,760,730 | 5,614,320 | 5,247,480 | 4,676,850 |
| Inventory turnover | 5.18 | 5.11 | 5.52 | 5.75 | 5.44 |
February 2, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $36,252,000K ÷ $6,994,270K
= 5.18
The inventory turnover for Dollar General Corporation has been relatively stable over the past five years, ranging from 5.11 to 5.75. This ratio measures how efficiently the company manages its inventory by indicating how many times the inventory is sold and replaced within a given period.
Despite some fluctuations, the slight variations in inventory turnover suggest that Dollar General has been able to effectively manage its inventory levels and turnover rate over the years. A higher inventory turnover ratio indicates that the company is selling its products more quickly and efficiently, which can be a positive sign of strong sales performance and inventory management practices.
Overall, Dollar General's inventory turnover indicates a consistent level of efficiency in managing its inventory, which is crucial for maintaining profitability and cash flow in the retail industry.
Peer comparison
Feb 2, 2024