Dollar General Corporation (DG)

Inventory turnover

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Feb 2, 2024	Jan 31, 2024	Nov 3, 2023	Oct 31, 2023	Aug 4, 2023	Jul 31, 2023	May 5, 2023	Apr 30, 2023	Feb 3, 2023	Jan 31, 2023	Oct 31, 2022	Oct 28, 2022	Jul 31, 2022	Jul 29, 2022	Apr 30, 2022	Apr 29, 2022
Cost of revenue (ttm)	US$ in thousands	28,827,100	30,837,730	30,765,750	32,875,480	32,602,870	32,421,180	31,997,530	29,124,280	28,630,090	28,798,050	29,101,140	29,293,480	31,635,470	28,741,130	30,198,830	29,632,120	28,907,970	28,481,690	27,826,780	27,712,190
Inventory	US$ in thousands	6,711,240	7,118,970	7,000,570	6,934,390	6,994,270	6,994,270	7,356,060	7,356,060	7,531,460	7,531,460	7,335,840	7,335,840	6,760,730	6,760,730	7,144,720	7,144,720	6,935,860	6,935,860	6,087,400	6,087,400
Inventory turnover		4.30	4.33	4.39	4.74	4.66	4.64	4.35	3.96	3.80	3.82	3.97	3.99	4.68	4.25	4.23	4.15	4.17	4.11	4.57	4.55

January 31, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $28,827,100K ÷ $6,711,240K
= 4.30

The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times the company sells and replaces its inventory within a certain period. A higher inventory turnover ratio generally signifies that the company is effectively selling its products and replenishing its inventory quickly.

Analyzing the inventory turnover data for Dollar General Corporation over multiple periods, we can observe some fluctuations in the ratio. The trends indicate the company's ability to manage its inventory efficiently. From April 29, 2022, to April 30, 2024, the inventory turnover ranged between 3.80 and 4.74 times.

The highest inventory turnover ratio was observed on February 3, 2023, at 4.68, while the lowest was on August 4, 2023, at 3.80. These fluctuations suggest changes in the company's inventory management practices and demand for its products.

Overall, Dollar General Corporation has maintained a relatively consistent inventory turnover ratio over the periods, which indicates effective inventory management. The company's ability to balance inventory levels to meet demand and avoid excess stock suggests efficient operations in terms of inventory turnover. Further analysis and comparison with industry standards could provide deeper insights into Dollar General's inventory management performance.