Name: Dollar General Corp. (NYSE:DG) | Cash Flow Statement
Creator: Stock Analysis on Net

Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

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Dollar General Corp., consolidated cash flow statement

US$ in thousands

12 months ended:	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020	Feb 1, 2019
Net income	1,661,274)	2,415,989)	2,399,232)	2,655,050)	1,712,555)	1,589,472)
Depreciation and amortization	848,793)	724,877)	641,316)	574,237)	504,804)	454,134)
Deferred income taxes	72,847)	235,299)	114,359)	34,976)	55,407)	52,325)
Loss on debt retirement	—)	—)	—)	—)	—)	1,019)
Noncash share-based compensation	51,891)	72,712)	78,178)	68,609)	48,589)	40,879)
Other noncash (gains) and losses	88,982)	530,530)	191,040)	11,570)	8,293)	41,851)
Merchandise inventories	(299,066)	(1,665,352)	(550,114)	(575,827)	(578,783)	(521,342)
Prepaid expenses and other current assets	(63,576)	(65,102)	(47,471)	(16,516)	(14,453)	(12,097)
Accounts payable	36,940)	(194,722)	98,735)	745,596)	428,627)	375,214)
Accrued expenses and other liabilities	(39,189)	(25,409)	(37,328)	388,597)	100,322)	65,857)
Income taxes	25,303)	(37,517)	(14,642)	(6,522)	(20,404)	56,390)
Other	7,599)	(6,750)	(7,494)	(3,611)	(6,959)	(152)
Change in operating assets and liabilities	(331,989)	(1,994,852)	(558,314)	531,717)	(91,650)	(36,130)
Adjustments to reconcile net income to net cash from operating activities	730,524)	(431,434)	466,579)	1,221,109)	525,443)	554,078)
Net cash provided by operating activities	2,391,798)	1,984,555)	2,865,811)	3,876,159)	2,237,998)	2,143,550)
Purchases of property and equipment	(1,700,222)	(1,560,582)	(1,070,460)	(1,027,963)	(784,843)	(734,380)
Proceeds from sales of property and equipment	6,199)	5,236)	4,903)	3,053)	2,358)	2,777)
Net cash used in investing activities	(1,694,023)	(1,555,346)	(1,065,557)	(1,024,910)	(782,485)	(731,603)
Issuance of long-term obligations	1,498,260)	2,296,053)	—)	1,494,315)	—)	499,495)
Repayments of long-term obligations	(19,723)	(911,330)	(6,402)	(4,640)	(1,465)	(577,321)
Net increase (decrease) in commercial paper outstanding	(1,501,900)	1,447,600)	54,300)	(425,200)	58,300)	(63,300)
Borrowings under revolving credit facilities	500,000)	—)	—)	300,000)	—)	—)
Repayments of borrowings under revolving credit facilities	(500,000)	—)	—)	(300,000)	—)	—)
Costs associated with issuance of debt	(12,438)	(16,925)	(2,268)	(13,574)	(1,675)	(4,384)
Repurchases of common stock	—)	(2,748,014)	(2,549,669)	(2,466,434)	(1,200,376)	(1,007,494)
Payments of cash dividends	(517,979)	(493,726)	(392,188)	(355,926)	(327,568)	(306,523)
Other equity and related transactions	11,712)	33,880)	64,225)	56,467)	22,104)	15,626)
Net cash used in financing activities	(542,068)	(392,462)	(2,832,002)	(1,714,992)	(1,450,680)	(1,443,901)
Net increase (decrease) in cash and cash equivalents	155,707)	36,747)	(1,031,748)	1,136,257)	4,833)	(31,954)
Cash and cash equivalents, beginning of period	381,576)	344,829)	1,376,577)	240,320)	235,487)	267,441)
Cash and cash equivalents, end of period	537,283)	381,576)	344,829)	1,376,577)	240,320)	235,487)

Based on: 10-K (reporting date: 2024-02-02), 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).

The cash flow profile indicates a period of significant physical expansion funded by a combination of operating cash flows and strategic debt issuance, coupled with a evolving approach to shareholder returns. While operating cash flows have remained positive throughout the period, they have experienced volatility linked to working capital fluctuations and shifts in net income.

Operating Cash Flow and Working Capital: Net cash provided by operating activities reached a peak of $3.88 billion in January 2021, followed by a contraction to $1.98 billion in February 2023, before recovering to $2.39 billion in February 2024. This volatility is largely attributed to fluctuations in working capital, most notably in merchandise inventories, which created a substantial cash outflow of $1.67 billion in February 2023. Depreciation and amortization have shown a consistent and linear increase, rising from $454 million in 2019 to $849 million in 2024, reflecting the growth of the company's fixed asset base.
Capital Investment Strategy: A sustained trend of aggressive capital expenditure is evident. Purchases of property and equipment have increased every year, growing from $734 million in February 2019 to $1.70 billion in February 2024. This consistent increase in investing outflows underscores a long-term strategy of capacity expansion and infrastructure investment, with the net cash used in investing activities mirroring this upward trajectory.
Financing and Capital Allocation: Capital allocation priorities have shifted markedly over the analyzed period. From 2019 through 2023, the company executed a large-scale share repurchase program, with annual outflows peaking at $2.75 billion in February 2023. However, share repurchases ceased completely in the period ending February 2024. In contrast, cash dividends have been increased steadily, growing from $307 million in 2019 to $518 million in 2024.
Liquidity and Debt Management: The company has utilized a mix of long-term debt and short-term credit instruments to manage liquidity. Significant issuances of long-term obligations occurred in 2021 ($1.49 billion) and 2023 ($2.30 billion). The use of commercial paper has been volatile, acting as a primary tool for short-term funding adjustments, including a large increase in outstanding commercial paper of $1.45 billion in 2023, which was largely reversed by a $1.50 billion decrease in 2024. Cash and cash equivalents at the end of the period increased from $235 million in 2019 to $537 million in 2024.

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