Dollar General Corporation (DG)

Cash ratio

		Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020
Cash and cash equivalents	US$ in thousands	537,283	381,576	344,829	1,376,580	240,320
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	6,725,700	5,887,770	5,979,360	5,710,780	4,543,000
Cash ratio		0.08	0.06	0.06	0.24	0.05

February 2, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($537,283K + $—K) ÷ $6,725,700K
= 0.08

The cash ratio of Dollar General Corporation has fluctuated over the past five years, ranging from 0.05 to 0.24. The ratio measures the company's ability to cover its short-term obligations with its available cash and cash equivalents.

In the most recent fiscal year, as of Feb 2, 2024, the cash ratio stood at 0.08, indicating that Dollar General had $0.08 in cash and cash equivalents for every $1 of current liabilities. This implies a moderate liquidity position, suggesting the company may have a lower ability to meet its short-term obligations solely through cash on hand compared to the previous year.

On Feb 3, 2023, the cash ratio was 0.06, showing a slight decrease from the previous year. This could indicate a relative decrease in liquidity compared to the prior fiscal year.

Dollar General's cash ratio was also 0.06 on Jan 28, 2022, suggesting a consistent liquidity position as in the previous fiscal year.

Notably, on Jan 29, 2021, the cash ratio spiked to 0.24, signaling a significant improvement in liquidity compared to the surrounding years. This surge in the cash ratio could indicate that Dollar General had substantially more cash on hand relative to its short-term obligations in that fiscal year.

Lastly, on Jan 31, 2020, the cash ratio was at its lowest point at 0.05, reflecting a weaker liquidity position compared to the subsequent years. Overall, the trend in Dollar General's cash ratio suggests some variability in the company's ability to cover its short-term liabilities with cash over the past five years.