Dollar General Corporation (DG)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	4.87	4.63	4.45	4.48	5.11	4.63	4.65	5.18	5.52	5.79	5.73	5.90	5.75	5.79	6.41	5.00	4.08	4.15	4.10	5.84
Receivables turnover	342.48	196.37	254.36	—	277.18	192.04	377.19	1,024.96	349.74	281.33	264.11	2,018.35	370.95	291.62	863.62	—	362.62	—	—	—
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
Working capital turnover	29.92	26.14	16.22	19.57	22.23	23.85	303.07	—	104.98	76.73	65.31	46.23	27.98	19.68	14.29	13.76	43.72	48.44	43.95	41.68

Inventory Turnover: Dollar General's inventory turnover has been generally stable over the past two years, ranging from 4.08 to 6.41 times. This indicates that the company is efficiently managing its inventory levels and quickly converting inventory into sales.

Receivables Turnover: There is significant variability in Dollar General's receivables turnover, ranging from 192.04 to 2,018.35 times over the past two years. A higher receivables turnover implies that the company is collecting its outstanding receivables quickly, indicating effective credit management.

Payables Turnover: Dollar General's payables turnover has remained relatively consistent, ranging from 6.56 to 9.78 times over the past two years. A higher payables turnover indicates favorable payment terms with suppliers, allowing the company to efficiently manage its short-term liabilities.

Working Capital Turnover: Dollar General's working capital turnover has also shown variability, ranging from 13.76 to 303.07 times over the past two years. A higher working capital turnover suggests that the company is efficiently utilizing its working capital to generate sales revenue, indicating strong operational efficiency.

Overall, Dollar General's activity ratios reflect a generally efficient operational performance in managing inventory, receivables, payables, and working capital, which is crucial for sustaining its financial health and profitability.

Average number of days

		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
Days of inventory on hand (DOH)	days	75.00	78.91	82.08	81.38	71.49	78.78	78.55	70.50	66.10	63.02	63.67	61.83	63.43	63.06	56.91	72.94	89.46	87.96	88.96	62.50
Days of sales outstanding (DSO)	days	1.07	1.86	1.43	—	1.32	1.90	0.97	0.36	1.04	1.30	1.38	0.18	0.98	1.25	0.42	—	1.01	—	—	—
Number of days of payables	days	38.47	39.18	40.12	40.82	37.57	45.50	49.36	45.25	44.02	42.01	40.64	39.94	43.69	47.31	44.07	52.47	54.72	55.64	54.89	37.31

Days of inventory on hand (DOH) measures how many days it takes for a company to sell its inventory. In the case of Dollar General Corporation, the DOH has ranged from 56.91 days to 89.46 days over the past few quarters, indicating fluctuations in inventory management efficiency. A lower DOH suggests faster inventory turnover, which can be positive for liquidity and profitability.

Days of sales outstanding (DSO) represents how long it takes a company to collect revenue after making a sale. Dollar General has experienced varying DSO figures, with values ranging from 0.18 days to 1.86 days. A lower DSO is indicative of efficient credit management and quicker cash conversion.

Number of days of payables reflects the average number of days a company takes to pay its suppliers. Dollar General's days of payables have fluctuated between 37.31 days and 55.64 days recently. A longer payment period may indicate a favorable liquidity position for the company, allowing it to hold onto cash for a longer period.

Overall, analyzing these activity ratios together provides insight into Dollar General's inventory management, sales collection efficiency, and payment practices, highlighting areas where the company may be excelling or areas where improvements may be needed.

Long-term

	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
Fixed asset turnover	6.32	6.63	6.86	7.06	7.19	7.33	7.57	7.73	7.84	8.11	8.17	8.40	8.63	8.76	8.87	8.91	8.47	8.70	8.83	8.69
Total asset turnover	1.25	1.27	1.27	1.28	1.29	1.25	1.25	1.28	1.29	1.31	1.32	1.33	1.30	1.24	1.21	1.19	1.22	1.22	1.22	1.23

The fixed asset turnover ratio measures a company's ability to generate sales revenue from its investment in fixed assets. Dollar General Corporation has shown consistent improvement in its fixed asset turnover ratio over the past several periods, indicating increasing efficiency in utilizing its fixed assets to generate sales. The ratio has ranged from 6.32 to 8.83, with a general upward trend.

On the other hand, the total asset turnover ratio reflects Dollar General's ability to generate sales from all its assets, including fixed and current assets. The company has maintained a relatively stable total asset turnover ratio ranging from 1.19 to 1.33 during the same period.

Overall, the trend in both fixed asset turnover and total asset turnover ratios suggests that Dollar General has been effectively managing its assets to drive sales growth. The increasing fixed asset turnover indicates improving efficiency in utilizing fixed assets, while the stable total asset turnover ratio demonstrates consistent performance in generating sales relative to all assets.