Dollar General Corporation (DG)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	40,612,320	40,089,220	39,764,330	39,165,720	38,945,780	38,876,220	38,813,890	38,544,930	38,193,680	38,609,940	39,016,660	39,138,720	39,207,100	38,504,710	37,684,430	36,970,890	36,271,360	35,497,100	34,727,420	34,493,910
Total current assets	US$ in thousands	8,163,920	8,176,520	8,724,240	8,096,970	8,010,720	8,010,720	8,271,080	8,271,080	8,413,980	8,413,980	8,055,460	8,055,460	7,581,010	7,581,010	8,017,020	8,017,020	7,682,890	7,682,890	6,736,870	6,736,870
Total current liabilities	US$ in thousands	6,868,700	7,110,700	7,141,190	6,641,860	6,725,700	6,725,700	6,787,090	6,787,090	6,033,920	6,033,920	6,100,680	6,100,680	5,887,770	5,887,770	6,502,650	6,502,650	7,566,790	7,566,790	6,951,840	6,951,840
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	—	—

January 31, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $40,612,320K ÷ ($8,163,920K – $6,868,700K)
= 31.36

The working capital turnover ratio for Dollar General Corporation has exhibited fluctuations over the period from April 29, 2022, to January 31, 2025.

Initially, the working capital turnover was not available for April 29, 2022, and April 30, 2022. The ratio then saw a significant increase in July 2022, reaching 305.75 and further increasing to 312.41 in the subsequent quarter. This indicates that Dollar General was efficiently utilizing its working capital to generate sales during this period.

However, from October 2022 to August 2023, there was a sharp decline in the working capital turnover ratio, dropping to as low as 16.05 in August 2023. This may suggest inefficiencies in working capital management or a decrease in sales relative to the level of working capital invested.

The ratio saw some recovery in the subsequent quarters, reaching 37.61 by October 31, 2024. This improvement suggests a better utilization of working capital leading to increased sales or more effective management of the working capital components.

In the most recent period ending January 31, 2025, the working capital turnover ratio decreased to 31.36. It is essential for Dollar General to monitor and manage its working capital effectively to ensure optimal utilization and efficiency in generating sales.