Dollar General Corporation (DG)
Financial leverage ratio
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 30,795,600 | 29,083,400 | 26,327,400 | 25,862,600 | 22,825,100 |
| Total stockholders’ equity | US$ in thousands | 6,749,120 | 5,541,770 | 6,261,990 | 6,661,240 | 6,702,500 |
| Financial leverage ratio | 4.56 | 5.25 | 4.20 | 3.88 | 3.41 |
February 2, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $30,795,600K ÷ $6,749,120K
= 4.56
The financial leverage ratio of Dollar General Corporation has been fluctuating over the past five years. The ratio has ranged from 3.41 in 2020 to 5.25 in 2023, with the latest ratio being 4.56 in 2024.
A higher financial leverage ratio indicates a higher level of financial leverage, suggesting that Dollar General has been relying more on debt to finance its operations and growth. Conversely, a lower financial leverage ratio signifies lower debt usage in the capital structure.
It is important to consider the trend of the financial leverage ratio over time to assess the company's ability to manage its debt obligations and financial risk effectively. A consistent increase in the ratio may raise concerns about the company's financial stability and ability to meet its debt obligations, while a decreasing trend may indicate a stronger financial position. Additional analysis and context regarding Dollar General's debt structure and overall financial health would be necessary to provide a more comprehensive evaluation of the company's financial leverage.
Peer comparison
Feb 2, 2024