Dollar General Corporation (DG)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	932,576	537,257	1,222,690	720,700	537,283	537,283	365,447	365,447	353,018	353,018	313,064	313,064	381,576	381,576	362,731	362,731	326,263	326,263	335,613	335,613
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Cash ratio		0.14	0.08	0.17	0.11	0.08	0.08	0.05	0.05	0.06	0.06	0.05	0.05	0.06	0.06	0.06	0.06	0.04	0.04	0.05	0.05

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 for Dollar General Corporation has fluctuated over the given periods. From April 29, 2022, to October 28, 2022, the cash ratio remained stable at around 0.05 to 0.06. However, there was a slight decrease in the cash ratio to 0.04 by the end of July 2022. Subsequently, the ratio improved back to 0.06 by February 3, 2023, and remained consistent until May 5, 2023.

Notably, a significant increase in the cash ratio was observed by January 31, 2024, where it reached 0.08 and further surged to 0.11 by April 30, 2024. This spike was followed by a substantial increase to 0.17 by the end of July 31, 2024, indicating a higher proportion of cash reserves relative to current liabilities.

Subsequently, the cash ratio dropped back to 0.08 by October 31, 2024, representing a decrease in liquidity. However, there was a notable recovery by January 31, 2025, where the cash ratio improved to 0.14. Overall, the analysis of the cash ratio for Dollar General Corporation suggests variations in the company's ability to cover its short-term liabilities with its cash reserves during the periods under consideration.