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.