Dollar General Corporation (DG)

Solvency ratios

Jan 31, 2025 Feb 2, 2024 Jan 31, 2024 Feb 3, 2023 Jan 31, 2023
Debt-to-assets ratio 0.00 0.00 0.00 0.00 0.00
Debt-to-capital ratio 0.00 0.00 0.00 0.00 0.00
Debt-to-equity ratio 0.00 0.00 0.00 0.00 0.00
Financial leverage ratio 4.20 4.56 4.56 5.25 5.25

Based on the data provided, Dollar General Corporation has consistently maintained a strong solvency position as evidenced by its solvency ratios.

1. Debt-to-assets ratio: Dollar General Corporation's debt-to-assets ratio has been at 0.00 for all the years indicated. This indicates that the company has not utilized debt to finance its assets, which suggests a low financial risk related to debt obligations.

2. Debt-to-capital ratio: Similarly, the debt-to-capital ratio has remained at 0.00 for the years presented. This ratio also signifies that the company has not relied on debt to fund its capital structure, which implies a healthy financial position without significant leverage.

3. Debt-to-equity ratio: The debt-to-equity ratio has also been consistently reported at 0.00 across the years. This implies that Dollar General Corporation's financial structure is primarily equity-funded, reflecting a minimal reliance on debt for financing operations.

4. Financial leverage ratio: The financial leverage ratio has shown a decreasing trend from 5.25 in January 31, 2023, to 4.20 in January 31, 2025. A decreasing financial leverage ratio indicates a reduction in the company's dependence on debt financing, which is generally considered positive as it lowers the financial risk associated with debt.

Overall, the solvency ratios of Dollar General Corporation suggest a prudent financial strategy with a minimal reliance on debt for funding operations and capital structure. This conservative approach to debt management contributes to the company's financial stability and resilience in meeting its obligations.


Coverage ratios

Jan 31, 2025 Feb 2, 2024 Jan 31, 2024 Feb 3, 2023 Jan 31, 2023
Interest coverage 6.25 7.49 7.49 15.75 15.75

The interest coverage ratio for Dollar General Corporation has displayed a declining trend over the past few years. In January 2023 and February 2023, the interest coverage ratio was consistent at 15.75, indicating the company's strong ability to cover its interest expenses with operating earnings. However, this ratio decreased to 7.49 in January and February 2024, suggesting a reduction in the company's ability to cover its interest obligations. By January 2025, the interest coverage ratio further declined to 6.25, signaling a continued decrease in Dollar General's ability to meet its interest costs with its operating income. This trend indicates a potential increase in financial risk for the company, as a lower interest coverage ratio may indicate a higher likelihood of default on debt obligations.


See also:

Dollar General Corporation Solvency Ratios