Dollar General Corporation (DG)

Working capital turnover

		Jan 31, 2025	Feb 2, 2024	Jan 31, 2024	Feb 3, 2023	Jan 31, 2023
Revenue	US$ in thousands	40,612,300	38,364,800	38,691,600	37,633,600	37,844,900
Total current assets	US$ in thousands	8,163,920	8,010,720	8,010,720	7,581,010	7,581,010
Total current liabilities	US$ in thousands	6,868,700	6,725,700	6,725,700	5,887,770	5,887,770
Working capital turnover		31.36	29.86	30.11	22.23	22.35

January 31, 2025 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $40,612,300K ÷ ($8,163,920K – $6,868,700K)
= 31.36

The working capital turnover of Dollar General Corporation has shown a consistent improvement over the years based on the provided data. In January 2023, the working capital turnover was 22.35, which increased slightly to 22.23 in February 2023. Subsequently, there was a significant jump in the working capital turnover to 30.11 in January 2024, followed by a slight decrease to 29.86 in February 2024. The trend continued to rise in January 2025, reaching 31.36.

This indicates that Dollar General Corporation has been effectively utilizing its working capital to generate sales revenue. A higher working capital turnover ratio signifies that the company is efficient in managing its working capital to support sales growth. The consistent improvement in this ratio reflects positively on the company's operational efficiency and financial performance over the years.