Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Dollar General Corp., adjustments to financial statements

US$ in thousands

	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020	Feb 1, 2019	Feb 2, 2018
Adjustment to Total Assets
Total assets (as reported)	29,083,367)	26,327,371)	25,862,624)	22,825,084)	13,204,038)	12,516,911)
Less: Goodwill	4,338,589)	4,338,589)	4,338,589)	4,338,589)	4,338,589)	4,338,589)
Total assets (adjusted)	24,744,778)	21,988,782)	21,524,035)	18,486,495)	8,865,449)	8,178,322)
Adjustment to Shareholders’ Equity
Shareholders’ equity (as reported)	5,541,772)	6,261,986)	6,661,238)	6,702,500)	6,417,393)	6,125,774)
Less: Goodwill	4,338,589)	4,338,589)	4,338,589)	4,338,589)	4,338,589)	4,338,589)
Shareholders’ equity (adjusted)	1,203,183)	1,923,397)	2,322,649)	2,363,911)	2,078,804)	1,787,185)

Based on: 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01), 10-K (reporting date: 2018-02-02).

Dollar General Corp., Financial Data: Reported vs. Adjusted

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Dollar General Corp., adjusted financial ratios

	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020	Feb 1, 2019	Feb 2, 2018
Total Asset Turnover
Reported total asset turnover	1.30	1.30	1.30	1.22	1.94	1.88
Adjusted total asset turnover	1.53	1.56	1.57	1.50	2.89	2.87
Financial Leverage
Reported financial leverage	5.25	4.20	3.88	3.41	2.06	2.04
Adjusted financial leverage	20.57	11.43	9.27	7.82	4.26	4.58
Return on Equity (ROE)
Reported ROE	43.60%	38.31%	39.86%	25.55%	24.77%	25.12%
Adjusted ROE	200.80%	124.74%	114.31%	72.45%	76.46%	86.11%
Return on Assets (ROA)
Reported ROA	8.31%	9.11%	10.27%	7.50%	12.04%	12.30%
Adjusted ROA	9.76%	10.91%	12.34%	9.26%	17.93%	18.82%

Based on: 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01), 10-K (reporting date: 2018-02-02).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Dollar General Corp. adjusted total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Dollar General Corp. adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Dollar General Corp. adjusted ROE improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Dollar General Corp. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Dollar General Corp., Financial Ratios: Reported vs. Adjusted

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	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020	Feb 1, 2019	Feb 2, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net sales	37,844,863)	34,220,449)	33,746,839)	27,753,973)	25,625,043)	23,470,967)
Total assets	29,083,367)	26,327,371)	25,862,624)	22,825,084)	13,204,038)	12,516,911)
Activity Ratio
Total asset turnover¹	1.30	1.30	1.30	1.22	1.94	1.88
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net sales	37,844,863)	34,220,449)	33,746,839)	27,753,973)	25,625,043)	23,470,967)
Adjusted total assets	24,744,778)	21,988,782)	21,524,035)	18,486,495)	8,865,449)	8,178,322)
Activity Ratio
Adjusted total asset turnover²	1.53	1.56	1.57	1.50	2.89	2.87

Based on: 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01), 10-K (reporting date: 2018-02-02).

2023 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 37,844,863 ÷ 29,083,367 = 1.30

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 37,844,863 ÷ 24,744,778 = 1.53

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Dollar General Corp. adjusted total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020	Feb 1, 2019	Feb 2, 2018
As Reported
Selected Financial Data (US$ in thousands)
Total assets	29,083,367)	26,327,371)	25,862,624)	22,825,084)	13,204,038)	12,516,911)
Shareholders’ equity	5,541,772)	6,261,986)	6,661,238)	6,702,500)	6,417,393)	6,125,774)
Solvency Ratio
Financial leverage¹	5.25	4.20	3.88	3.41	2.06	2.04
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets	24,744,778)	21,988,782)	21,524,035)	18,486,495)	8,865,449)	8,178,322)
Adjusted shareholders’ equity	1,203,183)	1,923,397)	2,322,649)	2,363,911)	2,078,804)	1,787,185)
Solvency Ratio
Adjusted financial leverage²	20.57	11.43	9.27	7.82	4.26	4.58

Based on: 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01), 10-K (reporting date: 2018-02-02).

2023 Calculations

¹ Financial leverage = Total assets ÷ Shareholders’ equity
= 29,083,367 ÷ 5,541,772 = 5.25

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 24,744,778 ÷ 1,203,183 = 20.57

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Dollar General Corp. adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.

	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020	Feb 1, 2019	Feb 2, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income	2,415,989)	2,399,232)	2,655,050)	1,712,555)	1,589,472)	1,538,960)
Shareholders’ equity	5,541,772)	6,261,986)	6,661,238)	6,702,500)	6,417,393)	6,125,774)
Profitability Ratio
ROE¹	43.60%	38.31%	39.86%	25.55%	24.77%	25.12%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income	2,415,989)	2,399,232)	2,655,050)	1,712,555)	1,589,472)	1,538,960)
Adjusted shareholders’ equity	1,203,183)	1,923,397)	2,322,649)	2,363,911)	2,078,804)	1,787,185)
Profitability Ratio
Adjusted ROE²	200.80%	124.74%	114.31%	72.45%	76.46%	86.11%

Based on: 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01), 10-K (reporting date: 2018-02-02).

2023 Calculations

¹ ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 2,415,989 ÷ 5,541,772 = 43.60%

² Adjusted ROE = 100 × Net income ÷ Adjusted shareholders’ equity
= 100 × 2,415,989 ÷ 1,203,183 = 200.80%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Dollar General Corp. adjusted ROE improved from 2021 to 2022 and from 2022 to 2023.

	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020	Feb 1, 2019	Feb 2, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income	2,415,989)	2,399,232)	2,655,050)	1,712,555)	1,589,472)	1,538,960)
Total assets	29,083,367)	26,327,371)	25,862,624)	22,825,084)	13,204,038)	12,516,911)
Profitability Ratio
ROA¹	8.31%	9.11%	10.27%	7.50%	12.04%	12.30%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income	2,415,989)	2,399,232)	2,655,050)	1,712,555)	1,589,472)	1,538,960)
Adjusted total assets	24,744,778)	21,988,782)	21,524,035)	18,486,495)	8,865,449)	8,178,322)
Profitability Ratio
Adjusted ROA²	9.76%	10.91%	12.34%	9.26%	17.93%	18.82%

Based on: 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01), 10-K (reporting date: 2018-02-02).

2023 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 2,415,989 ÷ 29,083,367 = 8.31%

² Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 2,415,989 ÷ 24,744,778 = 9.76%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Dollar General Corp. adjusted ROA deteriorated from 2021 to 2022 and from 2022 to 2023.

Dollar General Corp. (NYSE:DG)

Analysis of Goodwill and Intangible Assets

Adjustments to Financial Statements: Removal of Goodwill

Dollar General Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Dollar General Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)