Dollar General Corporation (DG)

Working capital turnover

		Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020
Revenue	US$ in thousands	38,364,800	37,633,600	34,062,900	33,596,500	27,653,400
Total current assets	US$ in thousands	8,010,720	7,581,010	6,303,840	6,914,220	5,177,870
Total current liabilities	US$ in thousands	6,725,700	5,887,770	5,979,360	5,710,780	4,543,000
Working capital turnover		29.86	22.23	104.98	27.92	43.56

February 2, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $38,364,800K ÷ ($8,010,720K – $6,725,700K)
= 29.86

The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio indicates better efficiency in managing working capital.

Looking at Dollar General Corporation's working capital turnover over the past five years, we observe fluctuations in the ratio:

- In 2024, the working capital turnover ratio stood at 29.86. This signifies that Dollar General generated $29.86 in sales for every dollar of working capital during the fiscal year.
- In 2023, the ratio was 22.23, indicating a less efficient utilization of working capital compared to 2024.
- The ratio spiked significantly to 104.98 in 2022, showcasing an exceptional efficiency in converting working capital into sales revenue.
- In 2021 and 2020, the ratios were 27.92 and 43.56, respectively, showing solid performance in both years.

Overall, Dollar General's working capital turnover has experienced fluctuations, with substantial variations in efficiency levels over the last five years. It is important for the company to closely monitor and manage its working capital to maintain a balance between liquidity and operational efficiency.