Dollar General Corp. (NYSE:DG)

The analysis of the current assets and adjusted current assets over the periods from February 2019 to February 2024 reveals a consistent upward trend.

Current Assets

Current assets show a steady increase from 4,663,020 thousand US dollars in February 2019 to 8,010,724 thousand US dollars in February 2024.

The value rose gradually each year, with a notable increase between January 2020 and January 2021, where the assets jumped from 5,177,868 to 6,914,219 thousand US dollars.

There was a slight decline in January 2022 to 6,303,843 thousand US dollars, followed by a significant rise through 2023 and 2024 to reach the highest value in the dataset.

Adjusted Current Assets

Adjusted current assets follow a similar pattern, increasing from 4,766,720 thousand US dollars in February 2019 to 8,885,824 thousand US dollars in February 2024.

The adjusted figures remain consistently higher than the unadjusted current assets, indicating additional adjustments that increase the asset base over the years.

The increases are relatively steady, with a minor slowdown between January 2021 and January 2022, which aligns with the trend observed in current assets.

The growth from February 2022 onwards is robust, culminating in the highest adjusted asset figure in February 2024.

Overall Insights

The sustained growth of both current and adjusted current assets over this five-year span suggests an expansion of liquidity or short-term asset holdings.

The temporary dip in 2022 could indicate a strategic reallocation or other operational adjustments, after which asset levels resumed their upward trajectory.

The consistently higher adjusted current assets imply that adjustments, possibly for inventory valuation or receivables, enhance the reported assets and may reflect improved asset quality or valuation practices over time.

The financial data reveal significant growth in total assets over the six-year period. Total assets increased consistently from approximately $13.2 billion in 2019 to nearly $31.0 billion in 2024. This steady upward trend suggests sustained asset accumulation and possibly expansion or investment activities within the company.

Adjusted total assets, which may account for certain adjustments or revaluations, also show a continuous increase from about $21.5 billion in 2019 to around $31.7 billion in 2024. Although the adjusted figures start at a significantly higher base compared to the reported total assets, their growth pattern parallels that of total assets, indicating consistent upward momentum in the company's asset base after adjustments.

Between 2019 and 2020, total assets experienced a sharp increase, rising by approximately 73%, which might reflect major acquisitions, capital investments, or notable asset revaluations during that period. After 2020, the growth rate moderated but remained positive, with total assets showing steady increments year over year.

Similarly, adjusted total assets rose sharply from 2019 to 2020 but at a much smaller rate, indicating that adjustments might have been factored more heavily into the 2019 figures or that the 2020 reported increase in total assets was not fully reflected in the adjusted measure. From 2020 onward, adjusted total assets continued a gradual and consistent growth trend, mirroring the general increase in total assets without major fluctuations.

Overall, the data indicate an expanding asset base with steady growth in both reported and adjusted totals, suggesting ongoing investments and value increments within the company’s asset portfolio over the examined timeframe.

The financial data reveals the evolution of total liabilities and adjusted total liabilities over a six-year span, from February 1, 2019, to February 2, 2024.

Total Liabilities

Total liabilities demonstrated a significant rise during the analyzed period, starting at approximately 6.79 billion USD in early 2019 and increasing sharply to around 24.05 billion USD by early 2024.

Between 2019 and 2020, there was an especially notable increase, more than doubling from about 6.79 billion USD to approximately 16.12 billion USD. In the subsequent years, total liabilities continued to grow but at a more moderate rate, reaching roughly 19.20 billion USD in 2021, about 20.07 billion USD in 2022, 23.54 billion USD in 2023, and finally 24.05 billion USD in 2024.

Adjusted Total Liabilities

Adjusted total liabilities also showed an upward trend over the period examined, albeit with different magnitude and starting point compared to total liabilities.

The adjusted liabilities were approximately 14.40 billion USD in 2019, which is significantly higher than the total liabilities for the same period. From 2019 to 2020, there was a slight decline or stabilization, moving to around 15.45 billion USD, followed by steady increases: approximately 18.49 billion USD in 2021, 19.24 billion USD in 2022, 22.48 billion USD in 2023, and roughly 22.91 billion USD in 2024.

This indicates that while total liabilities grew sharply early on, adjusted total liabilities exhibited a more consistent upward trajectory with less volatility.

Overall, the data suggests a pattern of substantial growth in both total and adjusted liabilities over the six-year timeframe. The initial sharp increase in total liabilities might indicate expanded borrowing or increased obligations around 2019-2020. Adjusted liabilities, while consistently higher across all years, showed steadier growth and perhaps reflect a broader or differently calculated liability base. The closing years appear to show a plateauing trend in growth rates, highlighting potential stabilization or improved management of liabilities.

The annual financial data reveals several notable trends regarding shareholders' equity and adjusted shareholders' equity over the six-year period under review.

Shareholders’ Equity

This metric initially shows a gradual increase from approximately 6.42 billion US dollars in early 2019 to a peak of roughly 6.70 billion US dollars in 2020. Following this peak, there is a subtle decline over the next two years, reaching a low of about 5.54 billion US dollars in early 2023. However, by early 2024, the shareholders' equity rebounds significantly, climbing back up to nearly 6.75 billion US dollars. This pattern suggests some fluctuations possibly driven by operational performance, capital structure changes, or external market conditions affecting equity valuation.

Adjusted Shareholders’ Equity

The adjusted figure consistently rises from approximately 7.13 billion US dollars in 2019 to 8.76 billion US dollars in 2024. Although the increases between consecutive years are moderate, this steady upward trajectory contrasts with the more variable pattern seen in the unadjusted shareholders’ equity. The adjustment may account for non-recurring factors or valuation effects, providing a perspective of underlying equity strength that appears more resilient and growth-oriented over time.

In summary, despite some volatility in the reported shareholders’ equity, the adjusted shareholders’ equity demonstrates a clear, sustained growth trend, indicative of strengthening financial fundamentals when adjustments for certain accounting factors are considered. The fluctuations in the standard equity measure warrant further examination to understand the drivers behind the decline observed between 2020 and 2023 and the subsequent recovery.

The financial data reveals several notable trends in liabilities, equity, and capital over the six-year period ending February 2, 2024.

Total Reported Debt

This liability category experienced a moderate increase from approximately $2.86 billion in early 2019 to about $4.17 billion in early 2022, followed by a sharp rise to nearly $7 billion in 2023, maintaining around that level into 2024. This indicates a significant uptick in reported borrowing in the most recent two years.

Shareholders’ Equity

Equity showed a generally declining trend from approximately $6.42 billion in 2019 to around $5.54 billion in 2023, before rebounding strongly to about $6.75 billion by 2024. This dip followed by recovery suggests periods of equity contraction, potentially reflecting accumulated losses, share repurchases, or dividend distributions, which later reversed or were offset by gains or additional equity injections.

Total Reported Capital

The sum of reported debt and shareholders’ equity, total reported capital, increased steadily from roughly $9.28 billion in 2019 to $13.75 billion in 2024. This overall growth reflects the company’s expansion in financing, largely driven by the increase in debt, especially after 2022.

Adjusted Total Debt

Adjusted total debt, likely including off-balance-sheet or operating leases, showed a steady increase from approximately $11.09 billion in 2019 to nearly $18.09 billion in 2024. This sustained growth in adjusted debt suggests rising leverage or increased financing commitments beyond the reported debt figures.

Adjusted Shareholders’ Equity

Adjusted equity remained relatively stable around $7.13 to $7.48 billion from 2019 through 2022, dipped slightly to about $7.42 billion in 2023, but then rose notably to $8.76 billion in 2024. The pattern here is similar to reported equity but with a less pronounced decline and stronger rebound, indicating adjustments that smooth fluctuations seen in reported figures.

Adjusted Total Capital

This comprehensive measure increased consistently from about $18.22 billion in 2019 to $26.85 billion in 2024. The growth reflects the combined effects of increased debt and stronger equity positions when adjustments are considered, highlighting an expansion in the company’s capital base over time.

Overall, the analysis identifies a trend of increasing leverage, particularly apparent in the sharp rise in total reported and adjusted debt levels in recent years. Despite temporary contractions in shareholders’ equity, the adjusted equity figures suggest resilience and eventual recovery. The sustained increase in total capital, on both reported and adjusted bases, indicates ongoing growth in the company’s financial resources and funding capacity.

The analysis of the net income and adjusted net income for the periods from February 1, 2019, through February 2, 2024, reveals notable trends and fluctuations in profitability.

Net Income

Net income demonstrates an overall increasing trend from 2019 to 2021, rising from approximately $1.59 billion to $2.65 billion. However, after peaking in 2021, it declined in 2022 to around $2.40 billion and showed a slight increase in 2023 to approximately $2.42 billion. In the latest period, 2024, net income experienced a significant drop to about $1.66 billion, representing a substantial decrease compared to the previous years.

Adjusted Net Income

Adjusted net income follows a similar upward trajectory from 2019 through 2023. Starting at approximately $1.67 billion in 2019, it steadily increased each year, reaching a peak of about $3.17 billion in 2023. However, this figure also shows a pronounced decline in 2024, falling to approximately $1.80 billion, which is a decrease of roughly 43% from the previous year.

Insights and Observations

The data suggests that while both net income and adjusted net income exhibited growth for several years, there was a peak around 2021 to 2023, followed by a sharp decline in the most recent period analyzed. The adjusted net income consistently remains higher than the net income in every year, indicating that adjustments made for non-recurring items or other factors positively affected the profitability measures.

The substantial decrease in both metrics in 2024 indicates potential challenges or adverse conditions impacting profitability. The close alignment in the declining trends for net income and adjusted net income may suggest that the adjustments had less impact in mitigating the decrease, or that new factors influencing earnings were not adjusted out.

The pronounced peak in adjusted net income in 2023 compared to net income could imply that the company had significant favorable adjustments during that period, which were not sustained in the following year.