Dollar General Corporation (DG)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.21 | 0.15 | 0.15 | 0.16 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.16 | 0.13 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.50 | 0.41 | 0.40 | 0.40 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.35 | 0.30 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.98 | 0.69 | 0.66 | 0.67 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.55 | 0.43 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.56 | 4.75 | 4.83 | 5.02 | 5.25 | 4.76 | 4.56 | 4.52 | 4.20 | 4.19 | 4.15 | 4.04 | 3.88 | 3.74 | 3.51 | 3.45 | 3.41 | 3.37 | 3.25 | 3.24 |
Dollar General Corporation's solvency ratios show a consistent and healthy financial position over the past few periods. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have been consistently at low levels or even zero, indicating the company has little to no debt relative to its assets, capital, and equity. This suggests that Dollar General has a strong ability to meet its financial obligations and maintain financial stability.
Moreover, the financial leverage ratio has been gradually decreasing over the periods, indicating that the company is relying less on debt to finance its operations. A decreasing financial leverage ratio signifies improved financial health and reduced risk of financial distress.
Overall, Dollar General's solvency ratios reflect a prudent financial management approach and a strong balance sheet, which bodes well for its long-term financial sustainability and ability to weather economic challenges.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 7.49 | 8.63 | 10.48 | 13.05 | 15.75 | 18.24 | 19.45 | 19.50 | 20.45 | 20.69 | 21.22 | 22.44 | 23.64 | 25.08 | 26.09 | 25.27 | 22.89 | 22.18 | 21.62 | 21.16 |
The interest coverage ratio for Dollar General Corporation has shown a generally upward trend over the past few years, indicating the company's ability to meet its interest obligations comfortably. The ratio has consistently been above 1, with the most recent ratio reported at 26.09 as of May 1, 2020. This signifies that Dollar General's earnings before interest and taxes (EBIT) are more than sufficient to cover its interest expenses by over 26 times. The consistent increase in the interest coverage ratio reflects a strong financial position and operational efficiency of the company. Investors and creditors may view this positively as it suggests a low risk of default due to interest payment issues.