Stock Analysis on Net

Dollar General Corp. (NYSE:DG)

This company has been moved to the archive! The financial data has not been updated since August 31, 2023.

Analysis of Operating Leases

Microsoft Excel

An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.


Adjustments to Financial Statements for Operating Leases

Dollar General Corp., adjustments to financial statements

US$ in thousands

Microsoft Excel
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
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 8,226,006 7,772,715
Total assets (adjusted) 29,083,367 26,327,371 25,862,624 22,825,084 21,430,044 20,289,626
Adjustment to Total Debt
Total debt (as reported) 7,009,399 4,172,068 4,130,975 2,911,993 2,864,690 3,005,958
Add: Operating lease liability (before adoption of FASB Topic 842)2 8,226,006 7,772,715
Add: Current portion of operating lease liabilities 1,288,939 1,183,559 1,074,079 964,805
Add: Long-term operating lease liabilities, excluding current portion 9,362,761 8,890,709 8,385,388 7,819,683
Total debt (adjusted) 17,661,099 14,246,336 13,590,442 11,696,481 11,090,696 10,778,673

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).

1, 2 Equal to total present value of future operating lease payments.


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


Adjusted Financial Ratios for Operating Leases (Summary)

Dollar General Corp., adjusted financial ratios

Microsoft Excel
Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019 Feb 2, 2018
Total Asset Turnover1
Reported total asset turnover 1.30 1.30 1.30 1.22 1.94 1.88
Adjusted total asset turnover 1.30 1.30 1.30 1.22 1.20 1.16
Debt to Equity2
Reported debt to equity 1.26 0.67 0.62 0.43 0.45 0.49
Adjusted debt to equity 3.19 2.28 2.04 1.75 1.73 1.76
Return on Assets3 (ROA)
Reported ROA 8.31% 9.11% 10.27% 7.50% 12.04% 12.30%
Adjusted ROA 8.31% 9.11% 10.27% 7.50% 7.42% 7.58%

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).

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 but then slightly improved from 2022 to 2023.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Dollar General Corp. adjusted debt to equity ratio deteriorated 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


Adjusted Total Asset Turnover

Microsoft Excel
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 Operating Leases
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 29,083,367 26,327,371 25,862,624 22,825,084 21,430,044 20,289,626
Activity Ratio
Adjusted total asset turnover2 1.30 1.30 1.30 1.22 1.20 1.16

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 ÷ 29,083,367 = 1.30

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 but then slightly improved from 2022 to 2023.

Adjusted Debt to Equity

Microsoft Excel
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 debt 7,009,399 4,172,068 4,130,975 2,911,993 2,864,690 3,005,958
Shareholders’ equity 5,541,772 6,261,986 6,661,238 6,702,500 6,417,393 6,125,774
Solvency Ratio
Debt to equity1 1.26 0.67 0.62 0.43 0.45 0.49
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Adjusted total debt 17,661,099 14,246,336 13,590,442 11,696,481 11,090,696 10,778,673
Shareholders’ equity 5,541,772 6,261,986 6,661,238 6,702,500 6,417,393 6,125,774
Solvency Ratio
Adjusted debt to equity2 3.19 2.28 2.04 1.75 1.73 1.76

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 Debt to equity = Total debt ÷ Shareholders’ equity
= 7,009,399 ÷ 5,541,772 = 1.26

2 Adjusted debt to equity = Adjusted total debt ÷ Shareholders’ equity
= 17,661,099 ÷ 5,541,772 = 3.19

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Dollar General Corp. adjusted debt-to-equity ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
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 Operating Leases
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 29,083,367 26,327,371 25,862,624 22,825,084 21,430,044 20,289,626
Profitability Ratio
Adjusted ROA2 8.31% 9.11% 10.27% 7.50% 7.42% 7.58%

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 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 ÷ 29,083,367 = 8.31%

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.