Dollar General Corporation (DG)

Number of days of payables

		Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020
Payables turnover		10.11	9.72	8.29	8.35	8.90
Number of days of payables	days	36.12	37.57	44.02	43.69	41.02

February 2, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 10.11
= 36.12

Dollar General Corporation's number of days of payables has shown a declining trend over the past five years. As of February 2, 2024, the company's number of days of payables stood at 36.12 days, indicating that on average, it takes approximately 36 days for Dollar General to pay its suppliers. This represents an improvement compared to the previous year's figure of 37.57 days.

The decreasing trend in the number of days of payables suggests that Dollar General is managing its payables more efficiently, potentially negotiating better payment terms with its suppliers. A lower number of days of payables may also indicate a more effective working capital management strategy, allowing the company to optimize its cash flow and liquidity.

Overall, the decreasing number of days of payables for Dollar General Corporation over the past five years reflects positively on the company's financial health and operational efficiency in managing its accounts payable.