Dollar General Corporation (DG)

Debt-to-equity ratio

		Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020
Long-term debt	US$ in thousands	—	—	4,172,070	—	2,911,440
Total stockholders’ equity	US$ in thousands	6,749,120	5,541,770	6,261,990	6,661,240	6,702,500
Debt-to-equity ratio		0.00	0.00	0.67	0.00	0.43

February 2, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $6,749,120K
= 0.00

The debt-to-equity ratio for Dollar General Corporation has shown significant fluctuations over the past five years. In January 2020, the company had a debt-to-equity ratio of 0.43, indicating that its total debt was 43% of its total equity. This ratio increased substantially to 0.67 in January 2022, suggesting a higher level of debt relative to equity. However, in the subsequent years, the ratio dropped back to 0.00 in February 2023 and February 2024, implying that the company either reduced its debt levels or significantly increased its equity.

The sudden drop to 0.00 in the debt-to-equity ratio in February 2023 and February 2024 may indicate a complete repayment of debt or a significant increase in equity, leading to a more stable financial structure. It is essential to further investigate the circumstances surrounding these changes to assess Dollar General Corporation's financial health and risk management strategies effectively.