Dollar General Corporation (DG)

Inventory turnover

		Jan 31, 2025	Feb 2, 2024	Jan 31, 2024	Feb 3, 2023	Jan 31, 2023
Cost of revenue	US$ in thousands	28,594,800	36,252,000	26,972,600	34,518,700	26,024,800
Inventory	US$ in thousands	6,711,240	6,994,270	6,994,270	6,760,730	6,760,730
Inventory turnover		4.26	5.18	3.86	5.11	3.85

January 31, 2025 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $28,594,800K ÷ $6,711,240K
= 4.26

Dollar General Corporation's inventory turnover has shown some fluctuations over the past few years. In January 2023, the inventory turnover was 3.85 times, indicating that the company's inventory was sold and replaced approximately 3.85 times during that year. By February 2023, the turnover ratio increased to 5.11, suggesting an improvement in the efficiency of inventory management.

In January 2024, the turnover ratio slightly decreased to 3.86, but by February 2024, it increased again to 5.18, reaching a higher level than the previous year. This indicates that Dollar General was able to turn over its inventory more frequently in 2024 compared to 2023.

In January 2025, the inventory turnover ratio was 4.26, which is lower than the ratio in February 2024 but still higher than the ratios in 2023 and January 2024. Overall, the trend shows that Dollar General has been able to effectively manage its inventory levels and turnover, with fluctuations reflecting seasonal variations and adjustments in inventory management strategies.