Dollar General Corporation (DG)
Cash conversion cycle
| Jan 31, 2025 | Feb 2, 2024 | Jan 31, 2024 | Feb 3, 2023 | Jan 31, 2023 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 85.67 | 70.42 | 94.65 | 71.49 | 94.82 |
| Days of sales outstanding (DSO) | days | — | 1.07 | — | 1.32 | — |
| Number of days of payables | days | — | 36.12 | — | 37.57 | — |
| Cash conversion cycle | days | 85.67 | 35.37 | 94.65 | 35.24 | 94.82 |
January 31, 2025 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 85.67 + — – —
= 85.67
The cash conversion cycle of Dollar General Corporation has shown some fluctuations over the years. In January 2023, the company's cash conversion cycle stood at 94.82 days, indicating a longer period to convert inventory into cash. However, by February 3, 2023, the cycle decreased significantly to 35.24 days, showing an improvement in efficiency.
The trend continued into January 2024, where the cash conversion cycle increased slightly to 94.65 days, reverting to a longer cycle. Yet, by February 2, 2024, it decreased again to 35.37 days, reflecting a return to improved efficiency in converting inventory into cash.
In January 2025, Dollar General Corporation managed to further decrease its cash conversion cycle to 85.67 days, showing a positive trend in streamlining its operations. Overall, while there have been fluctuations, the company has demonstrated efforts to manage its cash conversion cycle effectively over the years.
Peer comparison
Jan 31, 2025