Inventory Disclosure
Adjustment to Inventory: Conversion from LIFO to FIFO
Adjusted Financial Ratios: LIFO vs. FIFO (Summary)
Adjusted Current Ratio
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Dollar General Corp., balance sheet: inventory

US$ in thousands

		Feb 3, 2023		Jan 28, 2022		Jan 29, 2021		Jan 31, 2020		Feb 1, 2019		Feb 2, 2018
	Merchandise inventories	6,760,733)		5,614,325)		5,247,477)		4,676,848)		4,097,004)		3,609,025)

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).

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Item	Description	The company
Merchandise inventories	Amount after valuation and LIFO reserves of inventory expected to be sold, or consumed within one year or operating cycle, if longer.	Dollar General Corp. merchandise inventories increased from 2021 to 2022 and from 2022 to 2023.

Adjusting LIFO Inventory to FIFO (Current) Cost

US$ in thousands

	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020	Feb 1, 2019	Feb 2, 2018
Adjustment to Merchandise Inventories
Merchandise inventories at LIFO (as reported)	6,760,733)	5,614,325)	5,247,477)	4,676,848)	4,097,004)	3,609,025)
Add: Inventory LIFO reserve	813,600)	296,300)	115,900)	110,700)	103,700)	78,500)
Merchandise inventories at FIFO (adjusted)	7,574,333)	5,910,625)	5,363,377)	4,787,548)	4,200,704)	3,687,525)
Adjustment to Current Assets
Current assets (as reported)	7,581,009)	6,303,843)	6,914,219)	5,177,868)	4,663,020)	4,247,852)
Add: Inventory LIFO reserve	813,600)	296,300)	115,900)	110,700)	103,700)	78,500)
Current assets (adjusted)	8,394,609)	6,600,143)	7,030,119)	5,288,568)	4,766,720)	4,326,352)
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)
Add: Inventory LIFO reserve	813,600)	296,300)	115,900)	110,700)	103,700)	78,500)
Total assets (adjusted)	29,896,967)	26,623,671)	25,978,524)	22,935,784)	13,307,738)	12,595,411)
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)
Add: Inventory LIFO reserve	813,600)	296,300)	115,900)	110,700)	103,700)	78,500)
Shareholders’ equity (adjusted)	6,355,372)	6,558,286)	6,777,138)	6,813,200)	6,521,093)	6,204,274)
Adjustment to Net Income
Net income (as reported)	2,415,989)	2,399,232)	2,655,050)	1,712,555)	1,589,472)	1,538,960)
Add: Increase (decrease) in inventory LIFO reserve	517,300)	180,400)	5,200)	7,000)	25,200)	(2,200)
Net income (adjusted)	2,933,289)	2,579,632)	2,660,250)	1,719,555)	1,614,672)	1,536,760)

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. inventory value on Feb 3, 2023 would be $7,574,333) (in thousands) if the FIFO inventory method was used instead of LIFO. Dollar General Corp. inventories, valued on a LIFO basis, on Feb 3, 2023 were $6,760,733). Dollar General Corp. inventories would have been $813,600) higher than reported on Feb 3, 2023 if the FIFO method had been used instead.

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
Current Ratio
Reported current ratio (LIFO)	1.29	1.05	1.21	1.14	1.55	1.43
Adjusted current ratio (FIFO)	1.43	1.10	1.23	1.16	1.58	1.46
Net Profit Margin
Reported net profit margin (LIFO)	6.38%	7.01%	7.87%	6.17%	6.20%	6.56%
Adjusted net profit margin (FIFO)	7.75%	7.54%	7.88%	6.20%	6.30%	6.55%
Total Asset Turnover
Reported total asset turnover (LIFO)	1.30	1.30	1.30	1.22	1.94	1.88
Adjusted total asset turnover (FIFO)	1.27	1.29	1.30	1.21	1.93	1.86
Financial Leverage
Reported financial leverage (LIFO)	5.25	4.20	3.88	3.41	2.06	2.04
Adjusted financial leverage (FIFO)	4.70	4.06	3.83	3.37	2.04	2.03
Return on Equity (ROE)
Reported ROE (LIFO)	43.60%	38.31%	39.86%	25.55%	24.77%	25.12%
Adjusted ROE (FIFO)	46.15%	39.33%	39.25%	25.24%	24.76%	24.77%
Return on Assets (ROA)
Reported ROA (LIFO)	8.31%	9.11%	10.27%	7.50%	12.04%	12.30%
Adjusted ROA (FIFO)	9.81%	9.69%	10.24%	7.50%	12.13%	12.20%

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 current ratio	A liquidity ratio calculated as adjusted current assets divided by current liabilities.	Dollar General Corp. adjusted current ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Dollar General Corp. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
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 adjusted 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 adjusted net income divided by adjusted total assets.	Dollar General Corp. adjusted ROA deteriorated from 2021 to 2022 but then slightly improved 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)
Current assets	7,581,009)	6,303,843)	6,914,219)	5,177,868)	4,663,020)	4,247,852)
Current liabilities	5,887,768)	5,979,357)	5,710,783)	4,543,560)	3,015,857)	2,964,878)
Liquidity Ratio
Current ratio¹	1.29	1.05	1.21	1.14	1.55	1.43
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted current assets	8,394,609)	6,600,143)	7,030,119)	5,288,568)	4,766,720)	4,326,352)
Current liabilities	5,887,768)	5,979,357)	5,710,783)	4,543,560)	3,015,857)	2,964,878)
Liquidity Ratio
Adjusted current ratio²	1.43	1.10	1.23	1.16	1.58	1.46

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 Current ratio = Current assets ÷ Current liabilities
= 7,581,009 ÷ 5,887,768 = 1.29

² Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 8,394,609 ÷ 5,887,768 = 1.43

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Liquidity ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by current liabilities.	Dollar General Corp. adjusted current ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

	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)
Net sales	37,844,863)	34,220,449)	33,746,839)	27,753,973)	25,625,043)	23,470,967)
Profitability Ratio
Net profit margin¹	6.38%	7.01%	7.87%	6.17%	6.20%	6.56%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted net income	2,933,289)	2,579,632)	2,660,250)	1,719,555)	1,614,672)	1,536,760)
Net sales	37,844,863)	34,220,449)	33,746,839)	27,753,973)	25,625,043)	23,470,967)
Profitability Ratio
Adjusted net profit margin²	7.75%	7.54%	7.88%	6.20%	6.30%	6.55%

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 Net profit margin = 100 × Net income ÷ Net sales
= 100 × 2,415,989 ÷ 37,844,863 = 6.38%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Net sales
= 100 × 2,933,289 ÷ 37,844,863 = 7.75%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Dollar General Corp. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

	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: After Conversion from LIFO to FIFO
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	29,896,967)	26,623,671)	25,978,524)	22,935,784)	13,307,738)	12,595,411)
Activity Ratio
Adjusted total asset turnover²	1.27	1.29	1.30	1.21	1.93	1.86

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 ÷ 29,896,967 = 1.27

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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: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted total assets	29,896,967)	26,623,671)	25,978,524)	22,935,784)	13,307,738)	12,595,411)
Adjusted shareholders’ equity	6,355,372)	6,558,286)	6,777,138)	6,813,200)	6,521,093)	6,204,274)
Solvency Ratio
Adjusted financial leverage²	4.70	4.06	3.83	3.37	2.04	2.03

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
= 29,896,967 ÷ 6,355,372 = 4.70

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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: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted net income	2,933,289)	2,579,632)	2,660,250)	1,719,555)	1,614,672)	1,536,760)
Adjusted shareholders’ equity	6,355,372)	6,558,286)	6,777,138)	6,813,200)	6,521,093)	6,204,274)
Profitability Ratio
Adjusted ROE²	46.15%	39.33%	39.25%	25.24%	24.76%	24.77%

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 × Adjusted net income ÷ Adjusted shareholders’ equity
= 100 × 2,933,289 ÷ 6,355,372 = 46.15%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted 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: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted net income	2,933,289)	2,579,632)	2,660,250)	1,719,555)	1,614,672)	1,536,760)
Adjusted total assets	29,896,967)	26,623,671)	25,978,524)	22,935,784)	13,307,738)	12,595,411)
Profitability Ratio
Adjusted ROA²	9.81%	9.69%	10.24%	7.50%	12.13%	12.20%

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 × Adjusted net income ÷ Adjusted total assets
= 100 × 2,933,289 ÷ 29,896,967 = 9.81%

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

Dollar General Corp. (NYSE:DG)

Analysis of Inventory

Inventory Disclosure

Adjustment to Inventory: Conversion from LIFO to FIFO

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

Adjusted Financial Ratios: LIFO vs. FIFO (Summary)

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

Adjusted Current Ratio

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)