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.
Peer comparison
Feb 2, 2024