Dollar General Corporation (DG)
Solvency ratios
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 2, 2024 | Jan 31, 2024 | Nov 3, 2023 | Oct 31, 2023 | Aug 4, 2023 | Jul 31, 2023 | May 5, 2023 | Apr 30, 2023 | Feb 3, 2023 | Jan 31, 2023 | Oct 31, 2022 | Oct 28, 2022 | Jul 31, 2022 | Jul 29, 2022 | Apr 30, 2022 | Apr 29, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.21 | 0.00 | 0.15 | 0.00 | 0.15 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.50 | 0.00 | 0.41 | 0.00 | 0.40 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.98 | 0.00 | 0.69 | 0.00 | 0.66 |
| Financial leverage ratio | 4.20 | 4.28 | 4.38 | 4.43 | 4.56 | 5.00 | 4.75 | 4.75 | 4.83 | 4.83 | 5.02 | 5.02 | 5.25 | 5.25 | 4.76 | 4.76 | 4.56 | 4.56 | 4.52 | 4.52 |
Dollar General Corporation's solvency ratios indicate a strong financial position in terms of its ability to meet its long-term obligations. The Debt-to-assets ratio has shown consistency at low levels, indicating that only a small portion of the company's assets are financed by debt. The company has maintained a Debt-to-capital ratio close to zero, suggesting that it relies more on equity financing than debt to fund its operations.
The Debt-to-equity ratio has also been consistently low or zero, reflecting that Dollar General Corporation has a minimal level of debt relative to its equity, which is a positive indicator of financial stability. The Financial leverage ratio has been relatively stable over time, indicating a moderate level of financial leverage but still within reasonable limits.
Overall, Dollar General Corporation's solvency ratios demonstrate a strong financial foundation with low levels of debt and a healthy balance between debt and equity financing. This suggests that the company is well-positioned to weather financial challenges and meet its long-term financial obligations.
Coverage ratios
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 2, 2024 | Jan 31, 2024 | Nov 3, 2023 | Oct 31, 2023 | Aug 4, 2023 | Jul 31, 2023 | May 5, 2023 | Apr 30, 2023 | Feb 3, 2023 | Jan 31, 2023 | Oct 31, 2022 | Oct 28, 2022 | Jul 31, 2022 | Jul 29, 2022 | Apr 30, 2022 | Apr 29, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 5.07 | 5.87 | 7.65 | 6.92 | 6.36 | 6.56 | 6.76 | 7.66 | 8.56 | 9.55 | 10.60 | 11.67 | 12.98 | 14.72 | 17.03 | 18.42 | 20.05 | 19.90 | 19.73 | 19.28 |
Interest coverage ratio is a financial metric that indicates a company's ability to meet its interest obligations on outstanding debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expense. A higher interest coverage ratio suggests that the company is more capable of servicing its debt.
Based on the data provided for Dollar General Corporation, the interest coverage ratio has been on a declining trend over the past few periods. In April 2022, the interest coverage ratio was 19.28, indicating a strong ability to cover interest expenses. However, this ratio gradually decreased to 5.07 as of January 2025.
The declining trend in the interest coverage ratio suggests that Dollar General Corporation may be experiencing challenges in generating sufficient earnings to cover its interest expenses. A lower interest coverage ratio may raise concerns among investors and creditors about the company's financial health and ability to meet its debt obligations in the long run.
It is important for Dollar General Corporation to closely monitor its interest coverage ratio and consider implementing strategies to improve profitability and strengthen its financial position to ensure it can comfortably meet its interest obligations in the future.