Dollar General Corporation (DG)
Payables turnover
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 36,252,000 | 34,518,700 | 31,002,400 | 30,194,800 | 25,455,300 |
| Payables | US$ in thousands | 3,587,370 | 3,552,990 | 3,738,600 | 3,614,090 | 2,860,680 |
| Payables turnover | 10.11 | 9.72 | 8.29 | 8.35 | 8.90 |
February 2, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $36,252,000K ÷ $3,587,370K
= 10.11
The payables turnover ratio for Dollar General Corporation has shown a consistent upward trend over the past five years, increasing from 8.90 in January 2020 to 10.11 in February 2024. This indicates improvement in the company's efficiency in managing its accounts payable.
A higher payables turnover ratio suggests that Dollar General is paying off its suppliers more frequently within a shorter period, which could indicate strong cash flow management and potentially favorable supplier relationships.
Overall, the increasing trend in payables turnover ratio over the years reflects positively on Dollar General Corporation's ability to efficiently manage its payables and liquidity within its operations.
Peer comparison
Feb 2, 2024