Common-Size Balance Sheet: Assets
Quarterly Data
Dollar General Corp., common-size consolidated balance sheet: assets (quarterly data)
Based on: 10-Q (reporting date: 2024-08-02), 10-Q (reporting date: 2024-05-03), 10-K (reporting date: 2024-02-02), 10-Q (reporting date: 2023-11-03), 10-Q (reporting date: 2023-08-04), 10-Q (reporting date: 2023-05-05), 10-K (reporting date: 2023-02-03), 10-Q (reporting date: 2022-10-28), 10-Q (reporting date: 2022-07-29), 10-Q (reporting date: 2022-04-29), 10-K (reporting date: 2022-01-28), 10-Q (reporting date: 2021-10-29), 10-Q (reporting date: 2021-07-30), 10-Q (reporting date: 2021-04-30), 10-K (reporting date: 2021-01-29), 10-Q (reporting date: 2020-10-30), 10-Q (reporting date: 2020-07-31), 10-Q (reporting date: 2020-05-01), 10-K (reporting date: 2020-01-31), 10-Q (reporting date: 2019-11-01), 10-Q (reporting date: 2019-08-02), 10-Q (reporting date: 2019-05-03), 10-K (reporting date: 2019-02-01), 10-Q (reporting date: 2018-11-02), 10-Q (reporting date: 2018-08-03), 10-Q (reporting date: 2018-05-04).
The asset structure of the balance sheet underwent a fundamental transformation starting in May 2019, characterized by a significant redistribution of asset weights. This shift is primarily marked by the introduction of operating lease assets, which fundamentally altered the common-size composition of the balance sheet, reducing the proportional weight of previously dominant categories such as goodwill and merchandise inventories.
- Liquidity and Current Asset Management
- Current assets as a percentage of total assets experienced a general decline from approximately 33% to 35% in 2018 to a range of 26% to 27% by mid-2024. A notable anomaly occurred between May and July 2020, where cash and cash equivalents spiked to 10.76% and 11.45% respectively, suggesting a strategic accumulation of liquidity during the early stages of the global pandemic. Following this period, cash levels normalized, returning to a baseline between 1% and 4% of total assets. Merchandise inventories, which previously accounted for over 30% of assets, stabilized in the 20% to 24% range following the 2019 structural shift, exhibiting a gradual upward trend from 16.53% in May 2020 to 22.00% in August 2024.
- Noncurrent Asset Evolution
- The introduction of operating lease assets in May 2019 created a new primary asset category, consistently representing between 35% and 38% of total assets through August 2024. This addition contributed to an increase in the overall weight of noncurrent assets, which rose from approximately 66% in 2018 to a range of 72% to 78% in subsequent years. Net property and equipment showed a recovery trend; after dropping to 13.36% in May 2020, this metric climbed steadily to 19.71% by August 2024, indicating a sustained increase in investment in physical infrastructure relative to the total asset base.
- Intangible Asset Attrition
- A consistent downward trend is observed in the proportion of the balance sheet dedicated to intangible assets. Goodwill, which represented 34.73% of total assets in May 2018, declined sharply to 20.36% in May 2019 and continued a steady erosion to 13.64% by August 2024. Similarly, other intangible assets, net, decreased from a peak of 9.61% to 3.77% over the same period. This trend suggests that as the company's total asset base expanded—largely due to the recognition of lease assets and physical equipment—the relative impact of historical acquisitions and intangible valuations has diminished.
Overall, the balance sheet has evolved from one heavily weighted toward intangibles and inventories toward a model dominated by operating lease assets and a growing proportion of net property and equipment. The stability of the current asset ratio in recent quarters suggests a normalized operational cycle following the liquidity volatility experienced in 2020.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?