Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Dollar General Corp. (NYSE:DG)

Analysis of Income Taxes

Advanced level

Income Tax Expense (Benefit)

Dollar General Corp., income tax expense (benefit), continuing operations

US$ in thousands

Microsoft Excel LibreOffice Calc
12 months ended: Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017 Jan 29, 2016 Jan 30, 2015
Federal 368,451  320,361  426,933  613,009  590,120  543,089 
Foreign 102  159  105  135  1,678  1,245 
State 65,215  53,091  79,011  88,990  84,021  81,816 
Current 433,768  373,611  506,049  702,134  675,819  626,150 
Federal 45,966  48,262  (159,728) 11,053  6,410  (7,697)
Foreign (15) (38) (22) —  —  — 
State 9,456  4,109  22,021  1,308  5,715  (2,937)
Deferred 55,407  52,333  (137,729) 12,361  12,125  (10,634)
Provision for income taxes 489,175  425,944  368,320  714,495  687,944  615,516 

Based on: 10-K (filing date: 2020-03-19), 10-K (filing date: 2019-03-22), 10-K (filing date: 2018-03-23), 10-K (filing date: 2017-03-24), 10-K (filing date: 2016-03-22), 10-K (filing date: 2015-03-20).

Item Description The company
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Dollar General Corp.’s current decreased from 2018 to 2019 but then slightly increased from 2019 to 2020.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Dollar General Corp.’s deferred increased from 2018 to 2019 and from 2019 to 2020.
Provision for income taxes Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Dollar General Corp.’s provision for income taxes increased from 2018 to 2019 and from 2019 to 2020.

Effective Income Tax Rate (EITR)

Dollar General Corp., effective income tax rate (EITR) reconciliation

Microsoft Excel LibreOffice Calc
Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017 Jan 29, 2016 Jan 30, 2015
U.S. federal statutory tax rate 21.00% 21.00% 33.70% 35.00% 35.00% 35.00%
State income taxes, net of federal income tax benefit 2.80% 2.20% 3.20% 3.10% 3.20% 3.00%
Jobs credits, net of federal income taxes -1.30% -1.40% -1.40% -1.00% -1.20% -1.10%
Increase (decrease) in valuation allowances, net of federal taxes 0.00% 0.00% 0.20% -0.10% -0.10% 0.10%
Stock-based compensation programs -0.30% -0.20% -0.10% -0.50% 0.00% 0.00%
Increase (decrease) in income tax reserves 0.00% 0.20% -0.10% -0.10% -0.10% -0.40%
Other, net 0.00% -0.10% 0.10% -0.10% 0.30% 0.00%
Effective income tax rate, before impact of federal tax rate changes 22.20% 21.70% 35.60% 36.30% 37.10% 36.60%
Impact of federal tax rate changes 0.00% -0.60% -16.30% 0.00% 0.00% 0.00%
Effective income tax rate 22.20% 21.10% 19.30% 36.30% 37.10% 36.60%

Based on: 10-K (filing date: 2020-03-19), 10-K (filing date: 2019-03-22), 10-K (filing date: 2018-03-23), 10-K (filing date: 2017-03-24), 10-K (filing date: 2016-03-22), 10-K (filing date: 2015-03-20).

Item Description The company
Effective income tax rate, before impact of federal tax rate changes Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Dollar General Corp.’s effective income tax rate, before impact of federal tax rate changes decreased from 2018 to 2019 but then slightly increased from 2019 to 2020.

Components of Deferred Tax Assets and Liabilities

Dollar General Corp., components of deferred tax assets and liabilities

US$ in thousands

Microsoft Excel LibreOffice Calc
Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017 Jan 29, 2016 Jan 30, 2015
Deferred compensation expense 7,556  6,490  6,522  7,626  8,200  8,842 
Accrued expenses 16,788  3,278  3,324  6,958  8,139  5,146 
Accrued rent 401  22,668  23,418  24,077  20,793  19,360 
Operating lease liabilities 2,167,780  —  —  —  —  — 
Accrued insurance 5,895  6,869  8,630  72,990  72,676  76,197 
Accrued incentive compensation 16,721  15,219  6,394  15,170  19,902  14,866 
Share based compensation 16,321  15,713  13,442  18,908  17,988  17,623 
Interest rate hedges 1,076  1,421  1,765  3,175  3,702  4,318 
Tax benefit of income tax and interest reserves related to uncertain tax positions 164  472  365  746  1,371  1,502 
Deferred gain on sale-leaseback —  11,649  12,847  20,872  22,637  24,385 
Other 3,702  3,942  3,900  12,591  9,440  3,463 
State tax net operating loss carry forwards, net of federal tax 555  598  602  —  —  87 
State tax credit carry forwards, net of federal tax 7,534  8,245  8,350  8,765  10,711  11,039 
Deferred tax assets 2,244,493  96,564  89,559  191,878  195,559  186,828 
Valuation allowances, net of federal income taxes (4,077) (4,433) (4,435) —  (1,474) (2,845)
Deferred tax assets, less valuation allowances, net of federal income taxes 2,240,416  92,131  85,124  191,878  194,085  183,983 
Property and equipment (389,080) (322,575) (255,215) (334,430) (320,619) (302,531)
Operating lease assets (2,143,996) —  —  —  —  — 
Inventories (59,075) (56,221) (46,244) (65,844) (72,456) (73,188)
Trademarks (310,862) (308,793) (269,820) (434,045) (433,548) (433,328)
Prepaid insurance (11,933) (12,639) (22,875) —  —  — 
Other (697) (1,590) (6,672) (10,400) (7,417) (1,794)
Deferred tax liabilities (2,915,643) (701,818) (600,826) (844,719) (834,040) (810,841)
Net deferred tax assets (liabilities) (675,227) (609,687) (515,702) (652,841) (639,955) (626,858)

Based on: 10-K (filing date: 2020-03-19), 10-K (filing date: 2019-03-22), 10-K (filing date: 2018-03-23), 10-K (filing date: 2017-03-24), 10-K (filing date: 2016-03-22), 10-K (filing date: 2015-03-20).

Item Description The company
Deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Dollar General Corp.’s deferred tax assets increased from 2018 to 2019 and from 2019 to 2020.
Deferred tax assets, less valuation allowances, net of federal income taxes Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Dollar General Corp.’s deferred tax assets, less valuation allowances, net of federal income taxes increased from 2018 to 2019 and from 2019 to 2020.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Dollar General Corp.’s net deferred tax assets (liabilities) decreased from 2018 to 2019 and from 2019 to 2020.

Deferred Tax Assets and Liabilities, Classification

Dollar General Corp., deferred tax assets and liabilities, classification

US$ in thousands

Microsoft Excel LibreOffice Calc
Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017 Jan 29, 2016 Jan 30, 2015
Current deferred income tax liabilities, net —  —  —  —  —  25,268 
Noncurrent deferred income tax liabilities, net 675,227  609,687  515,702  652,841  639,955  601,590 

Based on: 10-K (filing date: 2020-03-19), 10-K (filing date: 2019-03-22), 10-K (filing date: 2018-03-23), 10-K (filing date: 2017-03-24), 10-K (filing date: 2016-03-22), 10-K (filing date: 2015-03-20).

Item Description The company
Noncurrent deferred income tax liabilities, net Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Dollar General Corp.’s noncurrent deferred income tax liabilities, net increased from 2018 to 2019 and from 2019 to 2020.

Adjustments to Financial Statements: Removal of Deferred Taxes

Dollar General Corp., adjustments to financial statements

US$ in thousands

Microsoft Excel LibreOffice Calc
Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017 Jan 29, 2016 Jan 30, 2015
Adjustment to Current Liabilities
Current liabilities (as reported) 4,543,560  3,015,857  2,964,878  2,622,805  1,995,596  1,987,740 
Less: Current deferred tax liabilities, net —  —  —  —  —  25,268 
Current liabilities (adjusted) 4,543,560  3,015,857  2,964,878  2,622,805  1,995,596  1,962,472 
Adjustment to Total Liabilities
Total liabilities (as reported) 16,122,584  6,786,645  6,391,137  6,266,004  5,880,009  5,514,066 
Less: Current deferred tax liabilities, net —  —  —  —  —  25,268 
Less: Noncurrent deferred tax liabilities, net 675,227  609,687  515,702  652,841  639,955  601,590 
Total liabilities (adjusted) 15,447,357  6,176,958  5,875,435  5,613,163  5,240,054  4,887,208 
Adjustment to Shareholders’ Equity
Shareholders’ equity (as reported) 6,702,500  6,417,393  6,125,774  5,406,294  5,377,876  5,710,038 
Less: Net deferred tax assets (liabilities) (675,227) (609,687) (515,702) (652,841) (639,955) (626,858)
Shareholders’ equity (adjusted) 7,377,727  7,027,080  6,641,476  6,059,135  6,017,831  6,336,896 
Adjustment to Net Income
Net income (as reported) 1,712,555  1,589,472  1,538,960  1,251,133  1,165,080  1,065,345 
Add: Deferred income tax expense (benefit) 55,407  52,333  (137,729) 12,361  12,125  (10,634)
Net income (adjusted) 1,767,962  1,641,805  1,401,231  1,263,494  1,177,205  1,054,711 

Based on: 10-K (filing date: 2020-03-19), 10-K (filing date: 2019-03-22), 10-K (filing date: 2018-03-23), 10-K (filing date: 2017-03-24), 10-K (filing date: 2016-03-22), 10-K (filing date: 2015-03-20).

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

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Dollar General Corp., adjusted financial ratios

Microsoft Excel LibreOffice Calc
Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017 Jan 29, 2016 Jan 30, 2015
Current Ratio
Reported current ratio 1.14 1.55 1.43 1.40 1.72 1.78
Adjusted current ratio 1.14 1.55 1.43 1.40 1.72 1.80
Net Profit Margin
Reported net profit margin 6.17% 6.20% 6.56% 5.69% 5.72% 5.63%
Adjusted net profit margin 6.37% 6.41% 5.97% 5.75% 5.78% 5.58%
Financial Leverage
Reported financial leverage 3.41 2.06 2.04 2.16 2.09 1.97
Adjusted financial leverage 3.09 1.88 1.88 1.93 1.87 1.77
Return on Equity (ROE)
Reported ROE 25.55% 24.77% 25.12% 23.14% 21.66% 18.66%
Adjusted ROE 23.96% 23.36% 21.10% 20.85% 19.56% 16.64%
Return on Assets (ROA)
Reported ROA 7.50% 12.04% 12.30% 10.72% 10.35% 9.49%
Adjusted ROA 7.75% 12.43% 11.19% 10.82% 10.46% 9.40%

Based on: 10-K (filing date: 2020-03-19), 10-K (filing date: 2019-03-22), 10-K (filing date: 2018-03-23), 10-K (filing date: 2017-03-24), 10-K (filing date: 2016-03-22), 10-K (filing date: 2015-03-20).

Financial ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Dollar General Corp.’s adjusted current ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Dollar General Corp.’s adjusted net profit margin ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.
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.’s adjusted financial leverage ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Dollar General Corp.’s adjusted ROE improved from 2018 to 2019 and from 2019 to 2020.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Dollar General Corp.’s adjusted ROA improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

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

Adjusted Current Ratio

Microsoft Excel LibreOffice Calc
Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017 Jan 29, 2016 Jan 30, 2015
As Reported
Selected Financial Data (US$ in thousands)
Current assets 5,177,868  4,663,020  4,247,852  3,677,771  3,432,410  3,532,609 
Current liabilities 4,543,560  3,015,857  2,964,878  2,622,805  1,995,596  1,987,740 
Liquidity Ratio
Current ratio1 1.14 1.55 1.43 1.40 1.72 1.78
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Current assets 5,177,868  4,663,020  4,247,852  3,677,771  3,432,410  3,532,609 
Adjusted current liabilities 4,543,560  3,015,857  2,964,878  2,622,805  1,995,596  1,962,472 
Liquidity Ratio
Adjusted current ratio2 1.14 1.55 1.43 1.40 1.72 1.80

Based on: 10-K (filing date: 2020-03-19), 10-K (filing date: 2019-03-22), 10-K (filing date: 2018-03-23), 10-K (filing date: 2017-03-24), 10-K (filing date: 2016-03-22), 10-K (filing date: 2015-03-20).

2020 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= 5,177,868 ÷ 4,543,560 = 1.14

2 Adjusted current ratio = Current assets ÷ Adjusted current liabilities
= 5,177,868 ÷ 4,543,560 = 1.14

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Dollar General Corp.’s adjusted current ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017 Jan 29, 2016 Jan 30, 2015
As Reported
Selected Financial Data (US$ in thousands)
Net income 1,712,555  1,589,472  1,538,960  1,251,133  1,165,080  1,065,345 
Net sales 27,753,973  25,625,043  23,470,967  21,986,598  20,368,562  18,909,588 
Profitability Ratio
Net profit margin1 6.17% 6.20% 6.56% 5.69% 5.72% 5.63%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income 1,767,962  1,641,805  1,401,231  1,263,494  1,177,205  1,054,711 
Net sales 27,753,973  25,625,043  23,470,967  21,986,598  20,368,562  18,909,588 
Profitability Ratio
Adjusted net profit margin2 6.37% 6.41% 5.97% 5.75% 5.78% 5.58%

Based on: 10-K (filing date: 2020-03-19), 10-K (filing date: 2019-03-22), 10-K (filing date: 2018-03-23), 10-K (filing date: 2017-03-24), 10-K (filing date: 2016-03-22), 10-K (filing date: 2015-03-20).

2020 Calculations

1 Net profit margin = 100 × Net income ÷ Net sales
= 100 × 1,712,555 ÷ 27,753,973 = 6.17%

2 Adjusted net profit margin = 100 × Adjusted net income ÷ Net sales
= 100 × 1,767,962 ÷ 27,753,973 = 6.37%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Dollar General Corp.’s adjusted net profit margin ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017 Jan 29, 2016 Jan 30, 2015
As Reported
Selected Financial Data (US$ in thousands)
Total assets 22,825,084  13,204,038  12,516,911  11,672,298  11,257,885  11,224,104 
Shareholders’ equity 6,702,500  6,417,393  6,125,774  5,406,294  5,377,876  5,710,038 
Solvency Ratio
Financial leverage1 3.41 2.06 2.04 2.16 2.09 1.97
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Total assets 22,825,084  13,204,038  12,516,911  11,672,298  11,257,885  11,224,104 
Adjusted shareholders’ equity 7,377,727  7,027,080  6,641,476  6,059,135  6,017,831  6,336,896 
Solvency Ratio
Adjusted financial leverage2 3.09 1.88 1.88 1.93 1.87 1.77

Based on: 10-K (filing date: 2020-03-19), 10-K (filing date: 2019-03-22), 10-K (filing date: 2018-03-23), 10-K (filing date: 2017-03-24), 10-K (filing date: 2016-03-22), 10-K (filing date: 2015-03-20).

2020 Calculations

1 Financial leverage = Total assets ÷ Shareholders’ equity
= 22,825,084 ÷ 6,702,500 = 3.41

2 Adjusted financial leverage = Total assets ÷ Adjusted shareholders’ equity
= 22,825,084 ÷ 7,377,727 = 3.09

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.’s adjusted financial leverage ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017 Jan 29, 2016 Jan 30, 2015
As Reported
Selected Financial Data (US$ in thousands)
Net income 1,712,555  1,589,472  1,538,960  1,251,133  1,165,080  1,065,345 
Shareholders’ equity 6,702,500  6,417,393  6,125,774  5,406,294  5,377,876  5,710,038 
Profitability Ratio
ROE1 25.55% 24.77% 25.12% 23.14% 21.66% 18.66%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income 1,767,962  1,641,805  1,401,231  1,263,494  1,177,205  1,054,711 
Adjusted shareholders’ equity 7,377,727  7,027,080  6,641,476  6,059,135  6,017,831  6,336,896 
Profitability Ratio
Adjusted ROE2 23.96% 23.36% 21.10% 20.85% 19.56% 16.64%

Based on: 10-K (filing date: 2020-03-19), 10-K (filing date: 2019-03-22), 10-K (filing date: 2018-03-23), 10-K (filing date: 2017-03-24), 10-K (filing date: 2016-03-22), 10-K (filing date: 2015-03-20).

2020 Calculations

1 ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 1,712,555 ÷ 6,702,500 = 25.55%

2 Adjusted ROE = 100 × Adjusted net income ÷ Adjusted shareholders’ equity
= 100 × 1,767,962 ÷ 7,377,727 = 23.96%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Dollar General Corp.’s adjusted ROE improved from 2018 to 2019 and from 2019 to 2020.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Jan 31, 2020 Feb 1, 2019 Feb 2, 2018 Feb 3, 2017 Jan 29, 2016 Jan 30, 2015
As Reported
Selected Financial Data (US$ in thousands)
Net income 1,712,555  1,589,472  1,538,960  1,251,133  1,165,080  1,065,345 
Total assets 22,825,084  13,204,038  12,516,911  11,672,298  11,257,885  11,224,104 
Profitability Ratio
ROA1 7.50% 12.04% 12.30% 10.72% 10.35% 9.49%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income 1,767,962  1,641,805  1,401,231  1,263,494  1,177,205  1,054,711 
Total assets 22,825,084  13,204,038  12,516,911  11,672,298  11,257,885  11,224,104 
Profitability Ratio
Adjusted ROA2 7.75% 12.43% 11.19% 10.82% 10.46% 9.40%

Based on: 10-K (filing date: 2020-03-19), 10-K (filing date: 2019-03-22), 10-K (filing date: 2018-03-23), 10-K (filing date: 2017-03-24), 10-K (filing date: 2016-03-22), 10-K (filing date: 2015-03-20).

2020 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 1,712,555 ÷ 22,825,084 = 7.50%

2 Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 1,767,962 ÷ 22,825,084 = 7.75%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Dollar General Corp.’s adjusted ROA improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.