Dollar General Corp. (NYSE:DG)

Net Sales

Net sales have shown a consistent upward trend over the period analyzed. Starting from approximately 11.8 billion in early 2010, the company experienced steady growth each year, reaching over 38.6 billion by early 2024. This indicates a strong and sustained increase in revenue generation over the fifteen-year span.

Operating Profit

Operating profit generally increased alongside net sales from 2010 through 2021, climbing from approximately 953 million to about 3.55 billion. This period reflects improving operational efficiency or scale benefits. However, from 2021 onward, operating profit declined, falling to around 2.45 billion by early 2024, which may point to rising operating costs, margin pressures, or other operational challenges impacting profitability despite higher sales.

Net Income

Net income followed a growth trajectory similar to operating profit during the initial years, rising from approximately 339 million in 2010 to a peak near 2.65 billion in 2021. Subsequently, net income fell noticeably to about 1.66 billion by early 2024. This decline corresponds with the reduction in operating profit and suggests increased expenses, lower margins, or other factors negatively affecting the bottom line.

Summary of Trends

The data reflects a company expanding sales volumes significantly over more than a decade. Initially, this growth translated well into higher operating profits and net income, indicating effective cost management and profitability improvement. However, from 2021 onwards, despite continued sales growth, both operating profit and net income decreased, highlighting emerging challenges possibly related to higher costs, competitive pressures, or other operational inefficiencies that have impacted profitability.

The analysis of the financial data over the examined periods reveals several notable trends regarding current assets and total assets.

Current Assets

Current assets demonstrate a consistent upward trajectory from 1,845,449 thousand US dollars in early 2010 to 8,010,724 thousand US dollars by early 2024. This growth is generally steady, with minor fluctuations. For instance, after a rise to approximately 3,532,609 thousand in early 2015, a mild decline occurred in early 2016 to about 3,432,410 thousand, followed by a resumption of the upward trend in subsequent years.

Significant increases are evident between 2019 and 2021, when current assets jumped from 5,177,868 thousand to 6,914,219 thousand, and again from 2022 to 2023, moving from 6,303,843 thousand to 7,581,009 thousand, signifying periods of possibly increased liquidity or short-term asset accumulation.

Total Assets

Total assets also show a clear growing trend, increasing from approximately 8,863,519 thousand US dollars in 2010 to 30,795,591 thousand in 2024. The increase is persistent, without any notable declines, suggesting continual long-term asset growth or acquisition.

The period between 2018 and 2020 shows a marked acceleration, with total assets rising sharply from 13,204,038 thousand to 22,825,084 thousand, indicating significant capital investments or asset acquisitions in this timeframe.

Growth continues robustly beyond 2020, albeit at a steadier pace, reaching 30,795,591 thousand by early 2024. This sustained increase reflects ongoing asset expansion strategies.

Overall, both current and total assets have increased substantially over the analyzed period, with total assets growing at a faster nominal rate, particularly from 2018 onwards. The periods of accelerated asset growth may correlate with strategic initiatives such as acquisitions, capital expenditures, or other investments. The steady rise in current assets points to improving liquidity or working capital management. No periods of asset contraction are evident, reflecting a generally positive asset growth environment.

The analysis of the financial data reveals distinct trends in the company's liabilities and shareholders’ equity over the fifteen-year period.

Current liabilities

Current liabilities show a consistent upward trajectory from 1,206,500 thousand USD in early 2010 to 6,725,701 thousand USD by early 2024. This represents a significant increase, especially noticeable from 2018 onwards, where the values nearly double within six years. Such a trend might indicate expanding short-term financial obligations or increased operational scale requiring more current liabilities.

Long-term obligations, including current portion

Long-term obligations demonstrate more fluctuation compared to current liabilities. Initially, there is a decline from 3,403,386 thousand USD in 2010 to a low of approximately 2,618,481 thousand USD in 2012. Following this trough, the levels rise and remain relatively stable around the 2.8 to 3.2 million USD mark until 2019. Beginning in 2020, a sharp increase occurs, with long-term obligations nearly doubling from approximately 2.9 million to over 7 million USD by 2024. This indicates a substantial increase in long-term debt or similar obligations during the most recent years.

Shareholders’ equity

Shareholders’ equity increased steadily from 3,390,298 thousand USD in 2010, peaking around 6,702,500 thousand USD in early 2020. After this peak, a decline is observed for the next two years, dropping to approximately 5,541,772 thousand USD in 2023. However, in 2024, equity rebounds to 6,749,119 thousand USD, the highest value in the dataset. The overall trend shows growth in equity but with some volatility in the recent period, suggesting fluctuations in retained earnings or changes in capital structure.

In summary, the financial data suggests the company has been expanding its obligations on both a short-term and long-term basis, with particularly notable increases in recent years for both current liabilities and long-term debt. Meanwhile, shareholders’ equity has generally increased over the period but exhibited some volatility in the latest years. This pattern may reflect strategic financing decisions, investment activities, or operational expansions influencing the company's financial structure.

Net cash provided by operating activities

Over the analyzed period, net cash provided by operating activities exhibits a generally upward trend, increasing from approximately $668.6 million in early 2010 to a peak of around $3.88 billion in early 2021. After this peak, there is a notable decline in 2022 to about $2.87 billion, followed by a further drop in 2023 to approximately $1.98 billion. However, in early 2024, cash flow shows a recovery, rising again to nearly $2.39 billion. This pattern suggests overall growth in operating cash flow with a significant spike around 2021, possibly indicating exceptional operational performance or non-recurring factors during that period, followed by a partial normalization in subsequent years.

Net cash used in investing activities

Cash outflows from investing activities have fluctuated but display an increasing trend in magnitude over time. Starting at about -$248 million in 2010, the outflows deepen to approximately -$1.69 billion by early 2024. There are notable increases in cash used especially after 2018, with a marked jump from around -$1.06 billion in early 2022 to -$1.56 billion in early 2023 and further to -$1.69 billion in 2024. This consistent rise in investing cash outflows could indicate expanding capital expenditures, acquisitions, or other investment initiatives expanding the company's asset base.

Net cash used in financing activities

The net cash used in financing activities demonstrates considerable variation over the years. Initially, in 2010, outflows were large at approximately -$577 million but diminished sharply to about -$130 million in 2011. This was followed by periods of increased cash usage, peaking at nearly -$1.29 billion in 2016. Post-2016, the outflows remained substantial but fluctuated, with a significant jump to about -$2.83 billion in 2022, then decreasing sharply in 2023 to around -$392 million, and increasing again to roughly -$542 million in 2024. These fluctuations suggest variable financing strategies involving debt issuance, repayments, dividend payments, or share buybacks, reflecting adjustments in capital structure and shareholder returns over time.

Basic earnings per share (EPS)

The basic EPS demonstrated a consistent upward trend from 2010 through 2023, indicating steady profitability growth. Starting at $1.05 in 2010, the EPS nearly doubled by 2013, reaching $2.87, and continued increasing annually to peak at $10.73 in 2023. Notably, there was a significant jump between 2019 and 2021, where EPS rose from $6.68 to $10.7, suggesting a period of accelerated earnings growth. However, in 2024, there was a notable decline to $7.57, interrupting the prior growth trajectory.

Diluted earnings per share (EPS)

The diluted EPS followed a pattern closely mirroring that of the basic EPS, reflecting similar profitability trends after accounting for potential shares from stock options or convertible securities. The growth from $1.04 in 2010 to $10.68 in 2023 indicates improved earnings power per share outstanding. The dilution effect appears minimal as the diluted EPS is consistently slightly below the basic EPS. The decline in 2024 to $7.55 again indicates a disruption in earnings growth.

Dividend per share

Dividend payments commenced in 2016 at $0.88 per share, indicating the initiation of return of capital to shareholders after a prolonged period of retained earnings growth. Dividends then increased steadily each year, rising to $2.36 by 2024. This consistent increase in dividends per share reflects growing confidence in cash flow generation and a commitment to shareholder returns despite the decline in earnings observed in the latest year.