Dollar General Corporation (DG)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	34,037,400	34,023,670	33,492,410	32,900,830	34,518,670	33,104,220	32,227,120	31,515,460	31,002,370	30,689,990	30,264,240	30,105,220	30,194,770	29,090,140	28,163,620	20,553,010	19,082,300	18,657,340	18,132,680	23,999,510
Inventory	US$ in thousands	6,994,270	7,356,060	7,531,460	7,335,840	6,760,730	7,144,720	6,935,860	6,087,400	5,614,320	5,298,860	5,279,270	5,099,460	5,247,480	5,025,810	4,391,160	4,107,330	4,676,850	4,496,380	4,419,630	4,109,760
Inventory turnover		4.87	4.63	4.45	4.48	5.11	4.63	4.65	5.18	5.52	5.79	5.73	5.90	5.75	5.79	6.41	5.00	4.08	4.15	4.10	5.84

February 2, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $34,037,400K ÷ $6,994,270K
= 4.87

The inventory turnover ratio for Dollar General Corporation has fluctuated over the time period provided, ranging from a low of 4.08 to a high of 6.41. This ratio measures how efficiently the company is managing its inventory by indicating how many times the company sells and replenishes its inventory within a specific period.

A higher inventory turnover ratio indicates that the company is selling its inventory more quickly, which can be a positive sign of strong sales and effective inventory management. On the other hand, a lower ratio may suggest slow-moving inventory or potential issues with inventory management.

In the case of Dollar General Corporation, the inventory turnover ratio has generally been above 4, indicating effective management of inventory. The company has seen fluctuations in the ratio, with some periods showing higher turnover than others. Overall, the trend seems to indicate a relatively stable and efficient inventory management system in place over the period analyzed.