Stock Analysis on Net

Dollar General Corp. (NYSE:DG)

$22.49

This company has been moved to the archive! The financial data has not been updated since August 29, 2024.

Analysis of Solvency Ratios

Microsoft Excel

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Solvency Ratios (Summary)

Dollar General Corp., solvency ratios

Microsoft Excel
Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019
Debt Ratios
Debt to equity
Debt to equity (including operating lease liability)
Debt to capital
Debt to capital (including operating lease liability)
Debt to assets
Debt to assets (including operating lease liability)
Financial leverage
Coverage Ratios
Interest coverage
Fixed charge coverage

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).


Debt to Equity
The debt to equity ratio showed a gradual increase from 0.45 in early 2019 to a peak of 1.26 by early 2023, before declining to 1.04 in early 2024. This indicates a rising reliance on debt funding relative to shareholder equity over the period with some recent deleveraging.
Debt to Equity (Including Operating Lease Liability)
Incorporating operating lease liabilities reveals a significantly higher leverage ratio throughout, escalating sharply from 0.45 in 2019 to a peak of 3.19 in 2023, then reducing to 2.68 in 2024. This suggests that operating leases represent a substantial portion of financial commitments, contributing to elevated leverage levels.
Debt to Capital
The debt to capital ratio also increased steadily from 0.31 in 2019 to 0.56 in 2023, followed by a slight decrease to 0.51 in 2024, reflecting a stronger debt component in the company’s capital structure that has marginally eased recently.
Debt to Capital (Including Operating Lease Liability)
Considering operating lease liabilities, the ratio rose from 0.31 in 2019 to a peak of 0.76 in 2023, then declined slightly to 0.73 in 2024. This pattern mirrors the trend observed in debt to equity with leases markedly amplifying total indebtedness.
Debt to Assets
When not including operating leases, debt to assets remained relatively low and stable around 0.13-0.24, culminating near 0.23 in 2024. This indicates a modest portion of assets financed by debt over the analyzed years.
Debt to Assets (Including Operating Lease Liability)
Including operating lease liabilities causes this ratio to show a pronounced increase from 0.22 in 2019 to 0.61 in 2023 before slightly decreasing to 0.59 in 2024, emphasizing the importance of lease obligations in asset financing.
Financial Leverage
The financial leverage ratio rose consistently from 2.06 in 2019 to 5.25 in early 2023, followed by a reduction to 4.56 in 2024. This trend reflects growing use of fixed financial obligations relative to equity, with some recent movement toward lower leverage.
Interest Coverage
Interest coverage remained robust above 20 times through 2021 but declined progressively thereafter to 7.49 in 2024. This indicates a diminishing ability to cover interest expenses from operating earnings, likely impacted by higher debt levels.
Fixed Charge Coverage
Fixed charge coverage stayed relatively stable in the range of approximately 2.6 to 3.2 from 2019 through 2021, followed by a gradual decrease to 2.02 in 2024. This reflects a weakening capacity to meet fixed charges, albeit at a generally adequate level.

Debt Ratios


Coverage Ratios


Debt to Equity

Dollar General Corp., debt to equity calculation, comparison to benchmarks

Microsoft Excel
Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019
Selected Financial Data (US$ in thousands)
Current portion of long-term obligations
Long-term obligations, excluding current portion
Total debt
 
Shareholders’ equity
Solvency Ratio
Debt to equity1
Benchmarks
Debt to Equity, Competitors2
Costco Wholesale Corp.
Target Corp.
Walmart Inc.
Debt to Equity, Sector
Consumer Staples Distribution & Retail
Debt to Equity, Industry
Consumer Staples

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).

1 2024 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= ÷ =

2 Click competitor name to see calculations.


An analysis of the financial data over the six-year period reveals notable shifts in the capital structure and leverage of the company.

Total Debt
Total debt demonstrated a rising trend overall. From February 2019 to January 2020, the increase was modest, moving from approximately 2.86 billion to 2.91 billion US dollars. However, a significant jump is observable from January 2020 through February 2024, with total debt nearly doubling from about 2.91 billion to 7 billion US dollars by February 2023 and remaining stable through February 2024. This reflects a substantial increase in the company’s borrowing or liabilities over the recent years.
Shareholders’ Equity
Shareholders’ equity showed initial growth, rising slightly from approximately 6.42 billion US dollars in February 2019 to 6.70 billion in January 2020. After that peak, equity experienced a gradual decline until February 2023, reaching a low of approximately 5.54 billion US dollars. Notably, by February 2024, equity rebounded to about 6.75 billion US dollars, indicating recovery after the decline period.
Debt to Equity Ratio
The debt to equity ratio remained relatively low and stable from 2019 through 2020, fluctuating around 0.43 to 0.45. Beginning in 2021, the ratio started to increase, reflecting the rise in total debt combined with the declining equity base. By 2022, the ratio climbed to 0.67 and then spiked significantly to 1.26 by February 2023, suggesting that debt exceeded equity by a substantial margin. This ratio then improved to 1.04 in February 2024, indicating a slight reduction in leverage though still representing a higher risk level compared to earlier years.

Overall, these patterns indicate that the company has increased its reliance on debt financing in recent years, particularly between 2022 and 2023, while shareholders' equity exhibited volatility with a period of decline followed by recovery. The elevated debt to equity ratio during this timeframe points to heightened financial leverage, which could impact the company's risk profile and cost of capital going forward.


Debt to Equity (including Operating Lease Liability)

Dollar General Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019
Selected Financial Data (US$ in thousands)
Current portion of long-term obligations
Long-term obligations, excluding current portion
Total debt
Current portion of operating lease liabilities
Long-term operating lease liabilities, excluding current portion
Total debt (including operating lease liability)
 
Shareholders’ equity
Solvency Ratio
Debt to equity (including operating lease liability)1
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Costco Wholesale Corp.
Target Corp.
Walmart Inc.
Debt to Equity (including Operating Lease Liability), Sector
Consumer Staples Distribution & Retail
Debt to Equity (including Operating Lease Liability), Industry
Consumer Staples

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).

1 2024 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= ÷ =

2 Click competitor name to see calculations.


Total Debt (including operating lease liability)
The total debt shows a significant upward trend over the analyzed periods. It starts at approximately 2.86 billion in early 2019 and dramatically increases to over 18 billion by early 2024. Notably, there was a sharp rise between 2019 and 2020, with debt nearly quadrupling. Subsequent years continue to show increasing debt, though the growth rate slows somewhat after 2022.
Shareholders’ Equity
Shareholders’ equity exhibits a fluctuating but generally declining pattern. Beginning around 6.42 billion in early 2019, it slightly increased by early 2020, then declined gradually over the next two years, reaching a low of approximately 5.54 billion by early 2023. In early 2024, equity rebounds somewhat to approximately 6.75 billion but remains below the initial 2019 value, indicating some variability and partial recovery in equity position.
Debt to Equity Ratio (including operating lease liability)
The debt to equity ratio follows a distinct increasing trend reflecting growing leverage. Starting at a moderate ratio of 0.45 in early 2019, it jumps sharply to 1.75 by early 2020. The ratio continues to rise steadily to a peak of 3.19 in early 2023, indicating that total debt has grown at a faster pace than equity. By early 2024, the ratio declines slightly to 2.68 but remains significantly higher than initial levels, suggesting sustained high leverage and a more debt-heavy capital structure.

Debt to Capital

Dollar General Corp., debt to capital calculation, comparison to benchmarks

Microsoft Excel
Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019
Selected Financial Data (US$ in thousands)
Current portion of long-term obligations
Long-term obligations, excluding current portion
Total debt
Shareholders’ equity
Total capital
Solvency Ratio
Debt to capital1
Benchmarks
Debt to Capital, Competitors2
Costco Wholesale Corp.
Target Corp.
Walmart Inc.
Debt to Capital, Sector
Consumer Staples Distribution & Retail
Debt to Capital, Industry
Consumer Staples

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).

1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =

2 Click competitor name to see calculations.


The analysis of the financial data over the six-year period reveals several notable trends concerning the company's capital structure and leverage.

Total Debt
Total debt remained relatively stable from 2019 through 2020, with a slight increase from approximately $2.86 billion to $2.91 billion. However, there was a significant jump in 2021 to about $4.13 billion, followed by a slight increase in 2022. The most marked increase occurred in 2023, where total debt surged to nearly $7.01 billion and remained at almost the same level in 2024. This indicates a substantial accumulation of debt in the latter years analyzed.
Total Capital
Total capital showed a consistent upward trend across the period, rising from approximately $9.28 billion in 2019 to about $13.75 billion in 2024. There were steady increments each year except for a small dip in 2022 after 2021, but the overall growth demonstrates expanding capitalization, likely driven by a combination of debt and equity financing.
Debt to Capital Ratio
The debt to capital ratio started at 0.31 in 2019 and exhibited a subtle decline to 0.30 in 2020, suggesting a balance between debt and equity in the capital structure. This ratio increased notably from 2021 onwards, reaching 0.38 in 2021 and rising further to 0.56 in 2023, before slightly decreasing to 0.51 in 2024. The upward trend reflects an increasing reliance on debt relative to total capital, peaking at over half of the capital being debt in 2023.

In summary, the company’s capital structure has evolved towards higher leverage, particularly marked by the large increase in total debt starting in 2021 and peaking in 2023. Despite this, total capital has continued to grow, indicating that the company has simultaneously expanded its overall capitalization. The increase in the debt to capital ratio points to a strategic or operational decision to utilize more debt financing, which could impact future financial risk and cost of capital considerations.


Debt to Capital (including Operating Lease Liability)

Dollar General Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019
Selected Financial Data (US$ in thousands)
Current portion of long-term obligations
Long-term obligations, excluding current portion
Total debt
Current portion of operating lease liabilities
Long-term operating lease liabilities, excluding current portion
Total debt (including operating lease liability)
Shareholders’ equity
Total capital (including operating lease liability)
Solvency Ratio
Debt to capital (including operating lease liability)1
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Costco Wholesale Corp.
Target Corp.
Walmart Inc.
Debt to Capital (including Operating Lease Liability), Sector
Consumer Staples Distribution & Retail
Debt to Capital (including Operating Lease Liability), Industry
Consumer Staples

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).

1 2024 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= ÷ =

2 Click competitor name to see calculations.


The financial data reveals a significant upward trend in total debt over the years under review. Starting from approximately $2.86 billion in early 2019, total debt escalated markedly, exceeding $18 billion by early 2024. This increase indicates a strong reliance on debt financing during this period.

Total capital, which includes operating lease liabilities, also showed steady growth. From around $9.28 billion in 2019, it reached nearly $24.84 billion by 2024. This upward movement in total capital reflects overall expansion and increased capital base, likely supporting business growth and operational needs.

The debt-to-capital ratio exhibits a trend of rising leverage, implying a growing proportion of debt in the company's capital structure. The ratio moved from 0.31 in 2019 to a peak of 0.76 in 2023, before slightly declining to 0.73 in 2024. This pattern suggests increasing financial risk as the company relies more heavily on debt, although the slight reduction in the last year could indicate an early attempt to moderate leverage.

Total Debt
Substantial growth from $2.86 billion to $18.09 billion over five years, indicating increased debt financing.
Total Capital
Consistent increase from $9.28 billion to $24.84 billion, signaling expansion in overall capital including lease liabilities.
Debt-to-Capital Ratio
Rising from 0.31 to a high of 0.76 before a minor decrease to 0.73, reflecting an elevated but slightly moderated leverage position.

Overall, the data reflects a strategic approach involving significant debt accumulation to support growth, coupled with rising total capitalization. The increase in leverage heightens financial risk but may also boost returns if managed prudently. The slight recent decline in the debt-to-capital ratio could indicate an early shift toward balance in the capital structure.


Debt to Assets

Dollar General Corp., debt to assets calculation, comparison to benchmarks

Microsoft Excel
Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019
Selected Financial Data (US$ in thousands)
Current portion of long-term obligations
Long-term obligations, excluding current portion
Total debt
 
Total assets
Solvency Ratio
Debt to assets1
Benchmarks
Debt to Assets, Competitors2
Costco Wholesale Corp.
Target Corp.
Walmart Inc.
Debt to Assets, Sector
Consumer Staples Distribution & Retail
Debt to Assets, Industry
Consumer Staples

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).

1 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =

2 Click competitor name to see calculations.


Total Debt

The total debt shows a generally increasing trend over the observed periods. Beginning at approximately 2.86 billion in early 2019, it remained relatively stable by early 2020. A noticeable increase occurred in early 2021 and 2022, reaching over 4.1 billion. A significant jump is seen in early 2023 with total debt rising sharply to nearly 7 billion, stabilizing around this level by early 2024.

Total Assets

Total assets consistently increased throughout the periods. Starting at about 13.2 billion in early 2019, the value rose considerably by early 2020 to over 22.8 billion. Growth continued steadily in subsequent years, reaching approximately 30.8 billion by early 2024, reflecting ongoing expansion or asset acquisition.

Debt to Assets Ratio

The debt to assets ratio exhibits fluctuations indicative of changes in the company’s leverage. It decreased from 0.22 in early 2019 to 0.13 in early 2020, suggesting a reduction in leverage or faster asset growth relative to debt. The ratio stabilized around 0.16 in 2021 and 2022, then increased significantly to 0.24 in early 2023, before slightly decreasing to 0.23 in early 2024. This pattern indicates that debt levels increased relative to asset growth, particularly from 2022 onward.

Overall Analysis

The firm has demonstrated substantial growth in assets over the six-year period, indicating expansion or investment in assets. The sharp increase in total debt during the latter periods, especially in 2023, coupled with a rising debt to assets ratio, suggests a greater reliance on debt financing. This shift in capital structure may imply strategic financing decisions or increased leverage risk, warranting monitoring of debt servicing capacity and financial stability going forward.


Debt to Assets (including Operating Lease Liability)

Dollar General Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019
Selected Financial Data (US$ in thousands)
Current portion of long-term obligations
Long-term obligations, excluding current portion
Total debt
Current portion of operating lease liabilities
Long-term operating lease liabilities, excluding current portion
Total debt (including operating lease liability)
 
Total assets
Solvency Ratio
Debt to assets (including operating lease liability)1
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Costco Wholesale Corp.
Target Corp.
Walmart Inc.
Debt to Assets (including Operating Lease Liability), Sector
Consumer Staples Distribution & Retail
Debt to Assets (including Operating Lease Liability), Industry
Consumer Staples

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).

1 2024 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =

2 Click competitor name to see calculations.


Total Debt (Including Operating Lease Liability)
There is a significant increasing trend in total debt over the analyzed periods. Starting from approximately 2.86 billion US dollars in early 2019, the debt rose sharply to nearly 11.7 billion as of early 2020. The upward trajectory continued through 2024, reaching over 18 billion US dollars. This indicates active leveraging over the years, potentially for expansion or operational scaling.
Total Assets
Total assets demonstrated consistent growth throughout the time frame, increasing from about 13.2 billion US dollars in 2019 to nearly 31 billion by early 2024. The asset base expanded steadily year over year, reflecting the company's efforts to accumulate more resources or investments.
Debt to Assets Ratio (Including Operating Lease Liability)
The debt to assets ratio increased notably from 0.22 in early 2019 to a peak of 0.61 in 2023, before a slight decrease to 0.59 by early 2024. This shows that debt as a proportion of assets more than doubled over the years, indicating increased financial leverage and potentially higher risk exposure. The decline in the last period suggests some moderation in leverage, although the ratio remains elevated compared to the initial period.
Summary
Overall, the financial data reveals a clear pattern of increased borrowing alongside steady asset growth. The rising debt to assets ratio suggests a strategy focused on leveraging, which may enhance returns but also carries increased financial risk. The slight reduction in leverage in the most recent period could imply efforts to stabilize the capital structure. Continuous monitoring of this ratio is advisable to maintain a balanced financial position.

Financial Leverage

Dollar General Corp., financial leverage calculation, comparison to benchmarks

Microsoft Excel
Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019
Selected Financial Data (US$ in thousands)
Total assets
Shareholders’ equity
Solvency Ratio
Financial leverage1
Benchmarks
Financial Leverage, Competitors2
Costco Wholesale Corp.
Target Corp.
Walmart Inc.
Financial Leverage, Sector
Consumer Staples Distribution & Retail
Financial Leverage, Industry
Consumer Staples

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).

1 2024 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= ÷ =

2 Click competitor name to see calculations.


The analysis of the financial data over the six-year period reveals several key trends in asset growth, equity fluctuation, and leverage changes.

Total assets
Total assets exhibited a significant upward trajectory, increasing from approximately 13.2 billion USD in early 2019 to nearly 30.8 billion USD by early 2024. This steady growth suggests an expansion in the company’s asset base, with notable increments observed particularly between 2019 and 2020, and continuing in subsequent years albeit at a slower pace from 2022 onwards.
Shareholders’ equity
Shareholders’ equity showed a fluctuating pattern during the same period. Starting at about 6.4 billion USD in 2019, it increased slightly by 2020 but then generally declined over the next three years, reaching a low of around 5.5 billion USD in early 2023. However, equity recovered substantially in 2024 to approximately 6.7 billion USD, nearly returning to the levels seen at the beginning of the period.
Financial leverage
Financial leverage, calculated as the ratio of total assets to equity, increased markedly from 2.06 in 2019 to a peak of 5.25 in early 2023, indicating a growing reliance on debt or liabilities relative to equity. This upward trend in leverage signals higher financial risk but also suggests the company leveraged its equity to finance asset growth. In 2024, leverage decreased to 4.56, indicating a partial reduction of financial risk or an increase in equity relative to assets.

Overall, the company significantly expanded its asset base while managing fluctuating equity levels and heightened financial leverage. The increase in leverage through most of the period implies a strategy possibly aimed at growth through increased borrowing, followed by a modest deleveraging in the most recent year.


Interest Coverage

Dollar General Corp., interest coverage calculation, comparison to benchmarks

Microsoft Excel
Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019
Selected Financial Data (US$ in thousands)
Net income
Add: Income tax expense
Add: Interest expense
Earnings before interest and tax (EBIT)
Solvency Ratio
Interest coverage1
Benchmarks
Interest Coverage, Competitors2
Costco Wholesale Corp.
Target Corp.
Walmart Inc.
Interest Coverage, Sector
Consumer Staples Distribution & Retail
Interest Coverage, Industry
Consumer Staples

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).

1 2024 Calculation
Interest coverage = EBIT ÷ Interest expense
= ÷ =

2 Click competitor name to see calculations.


Earnings before interest and tax (EBIT)
The EBIT showed a significant upward trend from 2019 to 2021, increasing from approximately 2.12 billion to 3.55 billion US dollars. However, after reaching this peak in early 2021, there was a decline over the next three years, dropping to around 2.45 billion US dollars by 2024.
Interest Expense
The interest expense exhibited a steady increase throughout the entire period. Starting at nearly 100 million US dollars in 2019, it nearly tripled to approximately 327 million US dollars by 2024, indicating a growing cost of debt or increased borrowing.
Interest Coverage Ratio
The interest coverage ratio remained relatively strong and stable from 2019 to 2021, fluctuating around 21 to 24 times. However, from 2022 onwards, the ratio declined markedly, falling to 7.49 times by 2024. This decline reflects the rising interest expense combined with the decreasing EBIT, suggesting a reduced ability to cover interest obligations from operating earnings.

Fixed Charge Coverage

Dollar General Corp., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel
Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019
Selected Financial Data (US$ in thousands)
Net income
Add: Income tax expense
Add: Interest expense
Earnings before interest and tax (EBIT)
Add: Operating lease cost
Earnings before fixed charges and tax
 
Interest expense
Operating lease cost
Fixed charges
Solvency Ratio
Fixed charge coverage1
Benchmarks
Fixed Charge Coverage, Competitors2
Costco Wholesale Corp.
Target Corp.
Walmart Inc.
Fixed Charge Coverage, Sector
Consumer Staples Distribution & Retail
Fixed Charge Coverage, Industry
Consumer Staples

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).

1 2024 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= ÷ =

2 Click competitor name to see calculations.


The financial data indicates several notable trends concerning earnings and fixed charges over the examined periods.

Earnings before fixed charges and tax
The earnings displayed a general increase from February 2019 to February 2023, rising from approximately 3.27 billion USD to nearly 4.94 billion USD. This upward trend peaked in early 2023; however, the figure then declined to approximately 4.20 billion USD by February 2024, indicating a decrease in earnings in the most recent period.
Fixed charges
Fixed charges consistently increased throughout the periods. Starting at about 1.26 billion USD in early 2019, these charges rose steadily each year to approximately 2.08 billion USD by February 2024. This represents a sustained growth in fixed financial obligations over the six-year span.
Fixed charge coverage ratio
The fixed charge coverage ratio initially showed a mild increase from 2.6 in early 2019 to 3.22 by January 2021, indicating an improving ability to cover fixed charges with earnings. Subsequently, however, the ratio declined to 2.02 by February 2024. This downward movement suggests a reduced margin of safety in covering fixed charges, reflecting the combination of declining earnings and rising fixed charges in recent periods.

Overall, while earnings had demonstrated growth for the initial years, the latest data reflects a contraction. Meanwhile, fixed charges have increased uninterruptedly, leading to a diminished fixed charge coverage ratio. The decline in this coverage ratio implies a potential increase in financial risk related to fixed obligations as the company's ability to cover these charges with earnings has weakened over the most recent periods.