Dollar General Corporation (DG)

Payables 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
Payables	US$ in thousands	3,587,370	3,651,780	3,681,630	3,679,170	3,552,990	4,127,080	4,358,390	3,906,850	3,738,600	3,532,640	3,369,980	3,294,420	3,614,090	3,770,530	3,400,640	2,954,360	2,860,680	2,844,170	2,727,080	2,452,900
Payables turnover		9.49	9.32	9.10	8.94	9.72	8.02	7.39	8.07	8.29	8.69	8.98	9.14	8.35	7.72	8.28	6.96	6.67	6.56	6.65	9.78

February 2, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $34,037,400K ÷ $3,587,370K
= 9.49

Payables turnover is a liquidity ratio that measures how efficiently a company manages its accounts payable by paying off its suppliers. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which could signal strong cash flow management.

Analyzing the payables turnover of Dollar General Corporation over the past few quarters, we can see that the ratio has fluctuated within a range of 6.56 to 9.78. The trend shows some variability, with no clear upward or downward trajectory over the period.

The average payables turnover ratio for Dollar General Corporation appears to be around 8.50, based on the data provided. This suggests that, on average, the company is paying off its suppliers approximately 8.5 times a year.

It is important to note that a relatively high payables turnover ratio can indicate efficient management of accounts payable, but it is also essential to consider the industry norms and compare Dollar General's ratio with its peers to gain a more comprehensive understanding of its payables management efficiency.