Dollar General Corporation (DG)

Cash ratio

		Jan 31, 2025	Feb 2, 2024	Jan 31, 2024	Feb 3, 2023	Jan 31, 2023
Cash and cash equivalents	US$ in thousands	932,576	537,283	537,283	381,576	381,576
Short-term investments	US$ in thousands	—	—	—	—	—
Total current liabilities	US$ in thousands	6,868,700	6,725,700	6,725,700	5,887,770	5,887,770
Cash ratio		0.14	0.08	0.08	0.06	0.06

January 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($932,576K + $—K) ÷ $6,868,700K
= 0.14

The cash ratio of Dollar General Corporation has shown a gradual improvement over the past three years. As of January 31, 2023, and February 3, 2023, the cash ratio stood at 0.06, indicating that the company had $0.06 in cash for every $1 of current liabilities. By January 31, 2024, and February 2, 2024, the cash ratio increased to 0.08, signaling a slight enhancement in the company's ability to cover its short-term obligations with cash on hand. The most recent data as of January 31, 2025, shows a further improvement with a cash ratio of 0.14, reflecting a strengthening liquidity position for Dollar General Corporation. Overall, the increasing trend in the cash ratio suggests that the company has been effectively managing its cash resources relative to its short-term liabilities, potentially enhancing its financial flexibility and ability to meet immediate obligations.