Dollar General Corporation (DG)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	537,283	365,447	353,018	313,064	381,576	362,731	326,263	335,613	344,829	488,662	313,666	688,055	1,376,580	2,199,440	2,959,600	2,673,910	240,320	276,076	259,568	271,111
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Cash ratio		0.08	0.05	0.06	0.05	0.06	0.06	0.04	0.05	0.06	0.09	0.06	0.13	0.24	0.37	0.55	0.55	0.05	0.06	0.06	0.07

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 shown some fluctuation over the past few years. The ratio measures the company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.

From May 2020 to May 2022, the cash ratio remained relatively stable between 0.05 and 0.06, suggesting a consistent ability to cover short-term liabilities during this period. However, there was a notable increase in the cash ratio in July 2022, reaching 0.37, and a further significant increase to 0.55 in July 2020. These spikes indicate a substantial increase in cash reserves relative to short-term liabilities during those periods.

The cash ratio then decreased to 0.05 in November 2020, but rebounded to 0.09 in November 2021 before dropping again to 0.08 in February 2024. Despite the fluctuations, the company generally maintained a cash ratio above 0.05, indicating a reasonable level of liquidity to cover immediate obligations.

Overall, Dollar General Corporation's cash ratio has demonstrated varying levels of liquidity over the analyzed periods, with some peaks and troughs reflecting changes in the company's cash position relative to its short-term obligations.