Dollar General Corporation (DG)
Activity ratios
Short-term
Turnover ratios
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 2, 2024 | Jan 31, 2024 | Nov 3, 2023 | Oct 31, 2023 | Aug 4, 2023 | Jul 31, 2023 | May 5, 2023 | Apr 30, 2023 | Feb 3, 2023 | Jan 31, 2023 | Oct 31, 2022 | Oct 28, 2022 | Jul 31, 2022 | Jul 29, 2022 | Apr 30, 2022 | Apr 29, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.30 | 4.33 | 4.39 | 4.74 | 4.66 | 4.64 | 4.35 | 3.96 | 3.80 | 3.82 | 3.97 | 3.99 | 4.68 | 4.25 | 4.23 | 4.15 | 4.17 | 4.11 | 4.57 | 4.55 |
| Receivables turnover | — | — | — | — | 346.92 | — | 196.47 | — | 251.72 | — | — | — | 288.77 | — | — | 196.57 | — | 380.53 | — | 1,027.34 |
| Payables turnover | — | — | — | — | 9.09 | — | 8.76 | — | 7.78 | — | 7.91 | — | 8.90 | — | — | 7.18 | — | 6.53 | — | 7.09 |
| Working capital turnover | 31.36 | 37.61 | 25.12 | 26.92 | 30.31 | 30.25 | 26.16 | 25.97 | 16.05 | 16.22 | 19.96 | 20.02 | 23.16 | 22.74 | 24.88 | 24.41 | 312.41 | 305.75 | — | — |
Based on the provided data on activity ratios for Dollar General Corporation, let's analyze each ratio:
1. Inventory Turnover Ratio:
- The inventory turnover ratio of Dollar General Corporation fluctuated over time but generally stayed within the range of 3.80 to 4.74.
- A higher inventory turnover ratio indicates that Dollar General is selling its inventory more frequently, which is generally considered positive for the company.
2. Receivables Turnover Ratio:
- The receivables turnover ratio of Dollar General Corporation varied significantly, with some periods having no data reported.
- A higher receivables turnover ratio indicates that Dollar General is collecting its receivables more efficiently.
3. Payables Turnover Ratio:
- The payables turnover ratio of Dollar General Corporation also experienced fluctuations over time.
- A higher payables turnover ratio suggests a shorter period within which Dollar General pays its suppliers, which may be beneficial for managing cash flows efficiently.
4. Working Capital Turnover Ratio:
- The working capital turnover ratio of Dollar General Corporation showed a declining trend from July 2022 to October 2024, with a slight increase in January 2025.
- A declining working capital turnover ratio may indicate Dollar General is becoming less efficient in its use of working capital to generate sales.
In conclusion, based on the activity ratios analysis, Dollar General Corporation generally exhibits efficient management of its inventory and accounts receivables, while the management of payables and working capital turnover show some fluctuations that may warrant closer monitoring for potential improvements in efficiency.
Average number of days
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 2, 2024 | Jan 31, 2024 | Nov 3, 2023 | Oct 31, 2023 | Aug 4, 2023 | Jul 31, 2023 | May 5, 2023 | Apr 30, 2023 | Feb 3, 2023 | Jan 31, 2023 | Oct 31, 2022 | Oct 28, 2022 | Jul 31, 2022 | Jul 29, 2022 | Apr 30, 2022 | Apr 29, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 84.98 | 84.26 | 83.05 | 76.99 | 78.30 | 78.74 | 83.91 | 92.19 | 96.02 | 95.46 | 92.01 | 91.41 | 78.00 | 85.86 | 86.36 | 88.01 | 87.57 | 88.88 | 79.85 | 80.18 |
| Days of sales outstanding (DSO) | days | — | — | — | — | 1.05 | — | 1.86 | — | 1.45 | — | — | — | 1.26 | — | — | 1.86 | — | 0.96 | — | 0.36 |
| Number of days of payables | days | — | — | — | — | 40.16 | — | 41.66 | — | 46.94 | — | 46.15 | — | 40.99 | — | — | 50.84 | — | 55.85 | — | 51.46 |
Based on the data provided, we can analyze Dollar General Corporation's activity ratios as follows:
1. Days of Inventory on Hand (DOH):
- Dollar General's average DOH over the period is approximately 85 days.
- The trend shows some fluctuation, with a peak of 96.02 days in August 2023 and a low of 76.99 days in April 2024.
- A decrease in DOH indicates efficient inventory management, while an increase may suggest slow-moving inventory or overstocking.
2. Days of Sales Outstanding (DSO):
- There is limited data available for DSO, with varying values and several missing data points within the period.
- The available data shows DSO ranging from 0.36 days to 1.86 days.
- Generally, a lower DSO indicates faster collection of receivables and better cash flow management.
3. Number of Days of Payables:
- The average number of days of payables for Dollar General is around 46 days.
- The trend shows some variability, with a range between 40.16 days and 55.85 days.
- A decrease in days of payables may imply better relationships with suppliers or early payment practices, while an increase could suggest delays in payment or stretched payables.
Overall, analyzing these activity ratios provides insights into Dollar General Corporation's inventory management efficiency, receivables collection effectiveness, and relationship with suppliers in terms of payment terms. Monitoring these ratios over time can help assess the company's operational performance and potential areas for improvement.
See also:
Dollar General Corporation Short-term (Operating) Activity Ratios (Quarterly Data)
Long-term
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 2, 2024 | Jan 31, 2024 | Nov 3, 2023 | Oct 31, 2023 | Aug 4, 2023 | Jul 31, 2023 | May 5, 2023 | Apr 30, 2023 | Feb 3, 2023 | Jan 31, 2023 | Oct 31, 2022 | Oct 28, 2022 | Jul 31, 2022 | Jul 29, 2022 | Apr 30, 2022 | Apr 29, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | 6.40 | — | 6.64 | 2.30 | 6.79 | 2.36 | 7.20 | 7.22 | 7.49 | 2.42 | 2.45 | 7.50 | 7.80 | 7.64 | 7.80 | 7.75 |
| Total asset turnover | 1.30 | 1.27 | 1.25 | 1.26 | 1.26 | 1.15 | 1.27 | 1.26 | 1.26 | 1.27 | 1.31 | 1.31 | 1.35 | 1.32 | 1.30 | 1.27 | 1.28 | 1.26 | 1.29 | 1.28 |
The fixed asset turnover ratio for Dollar General Corporation has displayed fluctuations over the reporting periods. It peaked at 7.80 in several instances but then experienced significant declines to as low as 2.30 and 2.36. This ratio compares net sales to the average value of fixed assets, indicating how efficiently the company is generating revenue from its fixed assets.
On the other hand, the total asset turnover ratio, which measures how efficiently the company is utilizing all its assets to generate sales, has been relatively stable ranging between 1.15 and 1.35. This ratio is important as it reflects the company's ability to generate sales relative to its total assets.
Overall, the fixed asset turnover ratio highlights Dollar General's ability to generate sales from its fixed assets, while the total asset turnover ratio indicates the effectiveness of the company in using all its assets to drive sales. Periodic review and analysis of these ratios can provide insights into the company's operational efficiency and asset utilization strategies.
See also:
Dollar General Corporation Long-term (Investment) Activity Ratios (Quarterly Data)