Dollar General Corporation (DG)

Working capital 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
Revenue (ttm)	US$ in thousands	38,447,860	38,794,560	38,593,980	38,264,760	37,633,610	36,118,450	35,185,880	34,414,030	34,062,920	33,864,500	33,545,190	33,579,340	33,667,220	32,410,340	31,242,400	29,579,230	27,753,960	27,246,130	26,672,200	26,133,760
Total current assets	US$ in thousands	8,010,720	8,271,080	8,413,980	8,055,460	7,581,010	8,017,020	7,682,890	6,736,870	6,303,840	6,181,830	5,992,720	6,041,740	6,914,220	7,533,430	7,597,410	6,992,480	5,177,870	5,068,540	4,919,140	4,583,770
Total current liabilities	US$ in thousands	6,725,700	6,787,090	6,033,920	6,100,680	5,887,770	6,502,650	7,566,790	6,951,840	5,979,360	5,740,500	5,479,080	5,315,400	5,710,780	5,886,210	5,411,190	4,843,230	4,543,000	4,506,040	4,312,270	3,956,720
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

February 2, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $38,447,860K ÷ ($8,010,720K – $6,725,700K)
= 29.92

The working capital turnover ratio for Dollar General Corporation has varied over the past several quarters, indicating fluctuations in the efficiency of the company's working capital management. In February 2024, the working capital turnover was 29.92, showing a substantial increase from the previous quarter's 26.14. This suggests that Dollar General was able to generate almost 30 times revenue from its working capital during the period.

However, in August 2023, the working capital turnover ratio dropped to 16.22, reflecting a decrease in the efficiency of the company's working capital utilization. The ratio then improved in subsequent quarters, reaching a high of 303.07 in July 2022, indicating an exceptional ability to generate revenue from its working capital during that period.

The significant spike in working capital turnover in July 2022 could be an anomaly or a result of specific events affecting the company's operations during that quarter. The absence of data for November 2022 limits the ability to analyze the progress of the working capital turnover from July 2022 to February 2024.

Overall, fluctuations in the working capital turnover ratio suggest that Dollar General has experienced varying levels of efficiency in managing its working capital over the analyzed period. Monitoring this ratio over time can provide insights into the company's operational efficiency and financial performance.