Dollar General Corp. (NYSE:DG)

Total Asset Turnover

The reported total asset turnover ratio declined sharply from 1.94 in early 2019 to 1.22 in 2020, then displayed stabilization around 1.3 through 2021 to 2023 before a slight decrease to 1.26 in 2024. Adjusted figures remained more consistent, increasing slightly from 1.19 in 2019 to a peak of 1.3 in 2021, followed by a gradual decline to 1.22 by 2024, indicating relatively stable asset utilization when adjustments are factored in.

Current Ratio

The reported current ratio showed a downward trend from 1.55 in 2019 to a low of 1.05 in 2022, followed by a modest recovery to 1.29 in 2023 before declining again to 1.19 in 2024. The adjusted current ratio mirrors this pattern but maintains higher values overall, peaking at 1.43 in 2023 and slightly receding to 1.32 in 2024, suggesting fluctuating short-term liquidity with a generally cautious liquidity position after adjustments.

Debt to Equity Ratio

Reported debt to equity increased moderately from 0.45 in 2019 to 0.67 in 2022, then escalated sharply to 1.26 in 2023 before decreasing to 1.04 in 2024. Adjusted debt to equity ratios are significantly higher, rising steadily from 1.56 in 2019 to 2.38 in 2023, then declining to 2.07 in 2024. This indicates rising leverage over the period, especially after adjustments that suggest a more leveraged capital structure than reported figures imply.

Debt to Capital Ratio

The reported ratio increased steadily from 0.31 in 2019 to 0.56 in 2023, before slightly falling to 0.51 in 2024. Adjusted figures rose gradually from 0.61 to 0.7 by 2023, reducing slightly to 0.67 in 2024. The upward trend indicates a growing reliance on debt financing relative to total capital over the years, with adjusted ratios reflecting a consistently higher debt proportion.

Financial Leverage

Reported financial leverage showed a strong increasing trend, moving from 2.06 in 2019 to a peak of 5.25 in 2023 before decreasing to 4.56 in 2024. Adjusted leverage rose from 3.02 to 4.03 by 2023, then retreated to 3.62 in 2024, illustrating an increasing use of debt to finance assets with some reduction in the most recent year. Adjusted leverage remains notably below reported figures but follows the same overall pattern.

Net Profit Margin

The reported net profit margin was relatively stable around 6.2%-6.38% from 2019 through 2023, with a peak at 7.87% in 2021, but declined sharply to 4.29% in 2024. The adjusted margins were slightly higher and more volatile, peaking at 8.38% in 2023 before dropping to 4.64% in 2024. This suggests profitability remained solid through most years but faced a significant decrease in the latest period.

Return on Equity (ROE)

Reported ROE increased substantially from 24.77% in 2019 to a high of 43.6% in 2023, before a decline to 24.61% in 2024. Adjusted ROE followed a similar trajectory, rising from 23.39% to 42.75% and then falling more sharply to 20.52%. This indicates strong equity returns through 2023, with a notable weakening in 2024 likely tied to reduced profitability and increased equity base or leverage adjustments.

Return on Assets (ROA)

The reported ROA showed fluctuating performance, declining from 12.04% in 2019 to 7.5% in 2020, recovering to 10.27% in 2021, then decreasing gradually to 5.39% by 2024. Adjusted ROA was more stable from 7.75% to 10.6% between 2019 and 2023 but also fell to 5.67% in 2024. The data indicates asset profitability was uneven, with consistent weakening in the latest year.

The financial data reveals several notable trends across the analyzed periods. Net sales exhibit a consistent upward trajectory, growing from approximately $25.6 billion in early 2019 to nearly $38.7 billion by early 2024. This steady increase indicates sustained revenue growth over the six-year span.

Total assets show significant growth as well, more than doubling from around $13.2 billion in 2019 to approximately $30.8 billion in 2024. This expansion in assets suggests ongoing investment or acquisition activity, contributing to the company's asset base.

Despite the increase in net sales and total assets, the reported total asset turnover ratio experiences a decline followed by stabilization. Initially, the ratio drops from 1.94 in 2019 to 1.22 in 2020, then modestly recovers to around 1.3 from 2021 through 2023 before slightly decreasing to 1.26 in 2024. This trend suggests that although sales increased, asset growth outpaced sales growth during the earlier years, resulting in reduced efficiency in asset utilization, which then stabilizes in later years.

Adjusted total assets, which presumably account for specific asset adjustments not reflected in reported total assets, also rise steadily from about $21.5 billion in 2019 to nearly $31.7 billion in 2024. The adjusted total asset turnover ratio remains relatively stable, fluctuating narrowly between 1.19 and 1.3 over the period. Unlike the reported asset turnover, this ratio does not show a significant initial decline but maintains a slight downward trend after 2021, indicating consistent but somewhat diminishing turnover efficiency when adjusted asset figures are considered.

Overall, the company demonstrates robust growth in sales and asset base, with asset turnover ratios reflecting initial decreases in asset efficiency followed by a stabilization phase. The divergence between reported and adjusted asset turnovers suggests the importance of asset adjustments in evaluating operational efficiency.

The analysis of the financial data over the periods from February 1, 2019, to February 2, 2024, reveals several trends in liquidity and asset management as reflected by current assets, current liabilities, and related ratios.

Current Assets

There is a general upward trend in current assets over the five-year period, increasing from approximately $4.66 billion in early 2019 to about $8.01 billion in early 2024. Although there was a slight decline in 2022 compared to 2021, the overall pattern shows growth, suggesting strengthening short-term asset holdings.

Current Liabilities

Current liabilities increased steadily from roughly $3.02 billion in 2019 to approximately $6.73 billion in 2024. The increase demonstrates growing obligations due within a year, which may reflect expansion or increased operational activities.

Reported Current Ratio

The reported current ratio exhibits some volatility. It decreased from 1.55 in 2019 to a low of 1.05 in 2022, indicating a tightening liquidity position at that point. Subsequently, the ratio improved to 1.29 in 2023 but slightly declined to 1.19 in 2024. This suggests fluctuations in the ability to meet short-term liabilities solely based on reported current assets and liabilities.

Adjusted Current Assets

Adjusted current assets follow a similar upward trajectory as the reported current assets but with consistently higher values, starting at about $4.77 billion in 2019 and rising to nearly $8.89 billion by 2024. This adjustment indicates additional asset considerations that enhance the liquidity picture.

Adjusted Current Ratio

The adjusted current ratio, which incorporates the adjusted current assets, demonstrates a similar trend to the reported current ratio but remains consistently higher. It declined from 1.58 in 2019 to a low of 1.10 in 2022, indicating a reduced, though still positive, liquidity margin. Following this, the ratio improved to 1.43 in 2023 and slightly decreased to 1.32 in 2024. This implies a relatively stronger liquidity position when adjustments are considered, highlighting a healthier capacity to cover short-term obligations.

In summary, the period under review shows growth in both current assets and liabilities, reflecting business expansion or increased operational scale. The liquidity ratios indicate some pressure on short-term financial stability around 2022 but recovery thereafter. The adjusted measures consistently portray a stronger liquidity stance, suggesting some assets not captured in the reported current assets contribute positively to short-term financial strength.

The analysis of the annual financial data reveals several notable trends in the company's leverage and equity positions over the six-year period from 2019 to 2024.

Total Debt

Total debt remained relatively stable between 2019 and 2020, with a slight increase from approximately $2.86 billion to $2.91 billion. Subsequently, the debt level increased significantly in 2021 and 2022, surpassing $4.1 billion. The most substantial rise occurred in 2023, where total debt nearly doubled to approximately $7 billion, and then remained stable into 2024.

Shareholders’ Equity

Shareholders’ equity showed a gradual increase from 2019 to 2020, reaching around $6.7 billion. This peak was followed by a decline over the next two years, dropping to approximately $5.54 billion in 2023. The equity then rebounded sharply in 2024 to about $6.75 billion, surpassing the earlier peak.

Reported Debt to Equity Ratio

The reported debt-to-equity ratio was low and relatively stable between 0.43 and 0.45 during 2019 and 2020. However, from 2021 onward, the ratio increased steadily, reaching 0.67 in 2022 and spiking to 1.26 in 2023, indicating a higher reliance on debt financing relative to equity. A decrease to 1.04 in 2024 suggests a partial reduction in leverage or an increase in equity during that period.

Adjusted Total Debt

The adjusted total debt, accounting for additional considerations beyond reported total debt, exhibited a consistent upward trend throughout the period. Starting from approximately $11.1 billion in 2019, it increased annually, reaching close to $18.1 billion by 2024. This reflects a growing leverage position when considering the adjusted debt metrics.

Adjusted Shareholders’ Equity

The adjusted shareholders’ equity remained relatively stable from 2019 through 2023, fluctuating slightly between $7.1 billion and $7.4 billion. A significant increase was observed in 2024, where the adjusted equity rose to about $8.76 billion, indicating an improvement in the equity base under adjusted calculations.

Adjusted Debt to Equity Ratio

This ratio consistently increased from 1.56 in 2019 and 2020 to a peak of 2.38 in 2023, reflecting rising adjusted debt levels outpacing adjusted equity growth. In 2024, the ratio declined to 2.07, partially reversing the upward trend but remaining substantially higher than in earlier years. The elevated ratio suggests a higher leverage profile when adjustments are taken into account.

Overall, the company’s financial data portrays a marked increase in debt, both reported and adjusted, especially after 2020. While shareholders’ equity showed some volatility, particularly a dip between 2021 and 2023 followed by recovery in 2024, the leverage ratios reflect a growing dependence on debt financing. The partial reversals in leverage ratios in 2024 indicate efforts to balance debt with increases in equity; however, the firm remains more heavily leveraged than in the initial years of the period assessed.

Total debt

The total debt exhibited a consistent upward trend from February 2019 to February 2024. Initially, it increased modestly from approximately 2.86 billion to around 2.91 billion by January 2020. This was followed by a more pronounced rise, reaching roughly 4.17 billion by January 2022. Subsequently, total debt surged significantly to approximately 7.01 billion in February 2023 and slightly decreased to about 7.00 billion by February 2024.

Total capital

Total capital also showed steady growth over the examined period. Starting at approximately 9.28 billion in February 2019, it increased incrementally to around 10.79 billion by January 2021. After a minor decrease in January 2022 to about 10.43 billion, it rebounded strongly, reaching approximately 13.75 billion by February 2024.

Reported debt to capital ratio

The reported debt to capital ratio reflected the changes in debt and capital levels. It remained relatively stable near 0.30-0.31 between February 2019 and January 2020, then increased notably to 0.38 in January 2021 and 0.40 in January 2022. A sharp rise occurred during the next year, peaking at 0.56 in February 2023, before improving slightly to 0.51 in February 2024, indicating an elevated but moderating leverage position.

Adjusted total debt

Adjusted total debt showed a markedly higher absolute value compared to reported total debt, but followed the same upward trajectory. Beginning at about 11.09 billion in February 2019, it grew steadily each year, reaching 18.09 billion by February 2024. The acceleration in growth mirrors that seen with reported total debt, highlighting a significant increase in debt obligations under the adjusted measure.

Adjusted total capital

Adjusted total capital increased consistently from approximately 18.22 billion in February 2019 to roughly 26.85 billion by February 2024. The growth was steady each year, supporting capital expansion parallel to the increase seen in adjusted total debt, though at a slightly slower pace in recent years.

Adjusted debt to capital ratio

The adjusted debt to capital ratio maintained a high leverage level throughout the period. It started at 0.61 in February 2019 and held steady through January 2020. The ratio then increased gradually, peaking at 0.70 in February 2023, before slightly decreasing to 0.67 by February 2024. This indicates consistently strong leverage when considering adjusted debt and capital figures, pointing to a relatively heavy reliance on debt financing.

The analysis of the financial metrics over the six-year period reveals several key trends in the company's asset base, equity levels, and leverage ratios.

Total Assets

Total assets increased substantially from approximately $13 billion in early 2019 to nearly $31 billion by early 2024, more than doubling over the period. The growth was steady each year, with a notable jump between 2019 and 2020 followed by steady increases thereafter.

Shareholders’ Equity

Reported shareholders’ equity showed a less consistent pattern. It increased slightly from about $6.4 billion in 2019 to $6.7 billion in 2020 but then gradually declined, reaching a low of roughly $5.5 billion in early 2023 before rebounding to approximately $6.7 billion by early 2024. This suggests some periods of equity contraction possibly due to share repurchases, dividends, or losses, followed by recovery.

Reported Financial Leverage

The reported financial leverage ratio, calculated as total assets divided by shareholders’ equity, rose markedly from 2.06 in 2019 to a peak of 5.25 in early 2023, indicating increased reliance on debt or other liabilities relative to equity. However, it declined to 4.56 in 2024, signaling some deleveraging or equity strengthening.

Adjusted Total Assets and Adjusted Shareholders’ Equity

The adjusted figures, which likely account for certain balance sheet reclassifications or non-standard items, follow similar growth patterns but with higher absolute values. Adjusted total assets rose from about $21.5 billion in 2019 to nearly $31.7 billion in 2024, while adjusted shareholders’ equity steadily increased from $7.1 billion to $8.8 billion during the same period, showing less volatility compared to reported equity.

Adjusted Financial Leverage

The adjusted financial leverage ratio increased moderately from 3.02 in 2019 to 4.03 in 2023, with a decline to 3.62 in 2024. Compared to reported leverage, this suggests a more conservative and stable leverage profile when adjustments are considered.

Overall, the data reflects significant asset growth alongside a relatively stable adjusted equity base. The company took on more leverage over the years, peaking around 2023, but showed signs of reducing leverage in the most recent period. The divergence between reported and adjusted figures indicates that underlying financial strength might be better reflected in adjusted metrics, highlighting the importance of adjustments in assessing true financial leverage and equity trends.

Net Income

Net income shows an overall increasing trend from 2019 to 2021, rising from approximately 1.59 billion USD to over 2.65 billion USD. This peak is followed by a decline in subsequent years, dropping to around 1.66 billion USD by 2024. The decline after 2021 is significant, with a noticeable dip especially between 2023 and 2024.

Net Sales

Net sales exhibit consistent growth throughout the entire period. Starting at about 25.6 billion USD in 2019, net sales increase steadily each year, reaching nearly 38.7 billion USD by 2024. This steady upward trajectory indicates a strong top-line expansion.

Reported Net Profit Margin

The reported net profit margin remained relatively stable around 6.2% to 6.4% from 2019 to 2020 but experienced a notable increase in 2021, peaking at approximately 7.87%. Following this, margins decreased progressively, falling to 4.29% by 2024, which coincides with the decline in net income despite rising sales.

Adjusted Net Income

Adjusted net income follows a similar pattern to net income but generally remains higher, suggesting adjustments favorably impacted earnings. It rises from about 1.67 billion USD in 2019 to over 3.17 billion USD in 2023 before falling to approximately 1.80 billion USD in 2024. The peak in adjusted net income in 2023 is more pronounced compared to net income, indicating significant adjustments in that year.

Adjusted Net Profit Margin

Adjusted net profit margin mirrors the reported margin trend but with higher values throughout the period. It increases from 6.51% in 2019 to a peak of 8.38% in 2023, followed by a sharp decline to 4.64% in 2024. This pattern highlights that while operational profitability improved until 2023, there was a substantial reduction in profitability in the most recent year.

Net Income

Net income demonstrated an overall upward trend from 1,589,472 thousand US dollars in early 2019 to a peak of 2,655,050 thousand US dollars in early 2021. Subsequently, it experienced a decline, falling to 1,661,274 thousand US dollars by early 2024. This indicates a significant increase in profitability over the initial three years, followed by a notable reduction in the last two years covered.

Shareholders’ Equity

Shareholders' equity showed moderate fluctuations throughout the period. It increased from approximately 6,417,393 thousand US dollars in early 2019 to about 6,702,500 thousand US dollars in early 2020 but then declined steadily to 5,541,772 thousand US dollars in early 2023. In the most recent year, early 2024, equity rebounded strongly to 6,749,119 thousand US dollars. This indicates some variability in capital structure with a recent recovery in equity base.

Reported Return on Equity (ROE)

The reported ROE followed an upward pattern from 24.77% in 2019 to 43.6% in 2023, highlighting improved profitability relative to equity during this period. In 2024, ROE sharply declined to 24.61%, mirroring the drop observed in net income and suggesting reduced efficiency in generating profit from equity.

Adjusted Net Income

Adjusted net income rose consistently from 1,667,979 thousand US dollars in 2019 to a high of 3,170,556 thousand US dollars in 2023, indicating strong operational performance after adjustments. However, in 2024, adjusted net income decreased significantly to 1,797,069 thousand US dollars, which aligns with the downward trend seen in net income during the same period.

Adjusted Shareholders’ Equity

Adjusted shareholders’ equity increased steadily from 7,130,780 thousand US dollars in 2019 to 8,758,003 thousand US dollars in 2024, reflecting a generally improving equity base when adjustments are considered. The growth in adjusted equity contrasts somewhat with the fluctuations observed in reported shareholders’ equity.

Adjusted Return on Equity (ROE)

The adjusted ROE rose from 23.39% in 2019 to a peak of 42.75% in 2023, indicating enhanced profitability on an adjusted basis prior to the decline to 20.52% in 2024. This pattern is consistent with the trends in adjusted net income and equity, highlighting strong performance through 2023 followed by a noticeable decrease in 2024 profitability.

Net Income Trend

The net income displayed an overall increasing trend from 2019 to 2021, peaking at approximately 2.66 billion US dollars in 2021. This was followed by a decline in 2022 and 2023, with net income falling to around 1.66 billion US dollars by 2024. This suggests a deterioration in profitability in the most recent years after a significant growth phase.

Total Assets Development

Total assets saw a continuous upward trajectory throughout the period under review. Starting from about 13.2 billion US dollars in 2019, total assets more than doubled by 2024, reaching close to 30.8 billion US dollars. This indicates a considerable expansion in the asset base, suggesting investment in growth or acquisition of resources over time.

Reported Return on Assets (ROA)

The reported ROA showed variability, initially declining from 12.04% in 2019 to 7.5% in 2020. It then recovered to above 10% in 2021 before gradually decreasing to a low of 5.39% by 2024. The decline in ROA in the latest period contrasts with the rising total assets, indicating that asset efficiency in generating profit has decreased.

Adjusted Net Income

Adjusted net income followed a pattern similar to the reported net income, increasing sharply to nearly 2.7 billion US dollars in 2021, then peaking at over 3.1 billion US dollars in 2023, before a marked drop back down to around 1.8 billion US dollars in 2024. The peak in 2023 suggests the presence of exceptional items or adjustments that temporarily boosted income.

Adjusted Total Assets

Adjusted total assets consistently increased each year, from approximately 21.5 billion US dollars in 2019 to nearly 31.7 billion US dollars in 2024. This confirms an ongoing growth strategy or capital expansion when considering adjusted figures, aligned with the trend in reported total assets.

Adjusted Return on Assets (ROA)

Adjusted ROA remained relatively stable around 7.7% in the initial years, rose to a peak of 10.6% in 2023, and then declined sharply to 5.67% in 2024. The peak suggests optimal asset utilization that year; however, the subsequent decline may point to operational challenges or reduced profitability despite asset growth.

Overall Insights

The analysis reveals strong asset growth throughout the period, but a declining trend in profitability ratios in the most recent year. Although income figures increased significantly until 2023, both reported and adjusted returns on assets declined sharply by 2024, indicating inefficiencies in converting asset growth into profit. The disparity between income peaks and subsequent profitability drops suggests external factors or one-time events influenced the financial performance.