Dollar General Corporation (DG)

Quick 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	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	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	112,262	197,555	151,730	—	135,775	188,082	93,283	33,576	97,394	120,374	127,011	16,637	90,760	111,139	36,176	—	76,537	—	—	—
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
Quick ratio		0.10	0.08	0.08	0.05	0.09	0.08	0.06	0.05	0.07	0.11	0.08	0.13	0.26	0.39	0.55	0.55	0.07	0.06	0.06	0.07

February 2, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($537,283K + $—K + $112,262K) ÷ $6,725,700K
= 0.10

The quick ratio of Dollar General Corporation has shown fluctuations over the past several quarters. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.

Looking at the data provided, the quick ratio has ranged from a low of 0.05 to a high of 0.55 over the past two years. The quick ratio of 0.10 on Feb 2, 2024, indicates that the company had $0.10 in liquid assets available to cover each dollar of current liabilities. This suggests a lower level of liquidity compared to some previous quarters.

The quick ratios of 0.08 on Nov 3, 2023, and Aug 4, 2023, also reflect a similar liquidity position, with only slight improvements from the lowest ratio of 0.05 observed on May 5, 2023.

In contrast, the quick ratio was notably higher at 0.55 on May 1, 2020, and Jan 31, 2020. This indicates that Dollar General had significantly more liquid assets available to cover its current liabilities during those periods, reflecting a stronger liquidity position.

Overall, fluctuations in the quick ratio of Dollar General Corporation indicate varying levels of liquidity over time, suggesting potential changes in the company's ability to meet its short-term obligations with its readily available assets. It would be important to closely monitor the company's quick ratio in future periods to assess its liquidity position effectively.