Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Dollar General Corp., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2024-08-02), 10-Q (reporting date: 2024-05-03), 10-K (reporting date: 2024-02-02), 10-Q (reporting date: 2023-11-03), 10-Q (reporting date: 2023-08-04), 10-Q (reporting date: 2023-05-05), 10-K (reporting date: 2023-02-03), 10-Q (reporting date: 2022-10-28), 10-Q (reporting date: 2022-07-29), 10-Q (reporting date: 2022-04-29), 10-K (reporting date: 2022-01-28), 10-Q (reporting date: 2021-10-29), 10-Q (reporting date: 2021-07-30), 10-Q (reporting date: 2021-04-30), 10-K (reporting date: 2021-01-29), 10-Q (reporting date: 2020-10-30), 10-Q (reporting date: 2020-07-31), 10-Q (reporting date: 2020-05-01), 10-K (reporting date: 2020-01-31), 10-Q (reporting date: 2019-11-01), 10-Q (reporting date: 2019-08-02), 10-Q (reporting date: 2019-05-03).
- Debt to Equity
- The debt to equity ratio exhibits a gradual increase from 0.42 in May 2019, reaching a peak of 1.26 in February 2023, before declining steadily to 0.96 by August 2024. This trend indicates an initial rise in leverage relative to shareholder equity, followed by a deleveraging phase towards the end of the period.
- Debt to Equity (Including Operating Lease Liability)
- When considering operating lease liabilities, the debt to equity ratio remains significantly higher, starting at 1.65 in May 2019 and escalating to a peak of 3.19 in February 2023. Subsequently, it decreases to 2.51 by August 2024, mirroring the overall pattern observed without lease liabilities, but at elevated levels due to the added lease obligations.
- Debt to Capital
- The debt to capital ratio shows an upward movement from 0.29 in May 2019 to 0.56 in February 2023, indicating increasing reliance on debt financing within the company’s capital structure. After this peak, the ratio declines to 0.49 by August 2024, suggesting a strategic reduction in debt levels relative to total capital.
- Debt to Capital (Including Operating Lease Liability)
- Including operating lease liabilities, the debt to capital ratio rises modestly from 0.62 to 0.76 between May 2019 and February 2023, before easing down to 0.71 by August 2024. This relatively stable but slightly elevated leverage measure reflects consistent lease obligations contributing to financed capital.
- Debt to Assets
- The debt to assets ratio increases steadily from 0.13 in May 2019 to 0.24 in February 2023, indicating a growing share of assets financed through debt. Post-peak, this ratio slightly decreases to 0.22 by August 2024, consistent with the overall deleveraging trend.
- Debt to Assets (Including Operating Lease Liability)
- When including lease liabilities, this ratio starts at 0.51 and climbs slightly to 0.61 in February 2023, then gradually declines to 0.57 by August 2024. This points to increased off-balance sheet liabilities initially factoring more heavily into asset financing, with a mild reduction in recent periods.
- Financial Leverage
- Financial leverage displays a rising trajectory, from 3.24 in May 2019 to a maximum of 5.25 in February 2023, indicating increased use of debt to finance assets relative to equity. After the peak, leverage diminishes to 4.38 by August 2024, aligning with the patterns observed in other leverage ratios.
- Interest Coverage
- The interest coverage ratio declines significantly over the period, starting at a strong 21.16 in May 2019 and progressively falling to 7.03 by August 2024. This decline reflects reduced ability to cover interest expenses from operating earnings, potentially due to increased debt levels and/or reduced earnings efficiency.
- Overall Analysis
- The financial data reveal a clear pattern of increasing leverage from mid-2019 through early 2023, with debt metrics peaking around February 2023 across all measures. Following this peak, there is a consistent trend of deleveraging, with reductions noted in debt relative to equity, capital, and assets, including lease liabilities. Concurrently, the interest coverage ratio has declined sharply, indicative of increasing burden from interest expenses and suggesting caution in debt management despite the recent deleveraging efforts. The elevated leverage including operating lease liabilities highlights the impact of lease obligations on the company’s financial structure. The overall trend suggests the company increased its leverage to possibly finance growth or strategic investments before undertaking measures to reduce financial risk in more recent quarters.
Debt Ratios
Coverage Ratios
Debt to Equity
Dollar General Corp., debt to equity calculation (quarterly data)
| Aug 2, 2024 | May 3, 2024 | Feb 2, 2024 | Nov 3, 2023 | Aug 4, 2023 | May 5, 2023 | Feb 3, 2023 | Oct 28, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 29, 2021 | Jul 30, 2021 | Apr 30, 2021 | Jan 29, 2021 | Oct 30, 2020 | Jul 31, 2020 | May 1, 2020 | Jan 31, 2020 | Nov 1, 2019 | Aug 2, 2019 | May 3, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Short-term borrowings | —) | —) | —) | —) | —) | 250,000) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Current portion of long-term obligations | 769,194) | 769,139) | 768,645) | 750,000) | —) | —) | —) | —) | 900,635) | 900,635) | —) | —) | —) | —) | —) | —) | —) | 580) | 555) | 555) | 555) | 555) | |||||||
| Long-term obligations, excluding current portion | 6,235,166) | 6,222,387) | 6,231,539) | 6,440,845) | 7,295,215) | 7,028,767) | 7,009,399) | 5,985,728) | 4,290,700) | 3,947,462) | 4,172,068) | 4,127,426) | 4,156,765) | 4,130,710) | 4,130,975) | 4,131,573) | 4,089,001) | 3,967,221) | 2,911,438) | 2,762,490) | 2,573,483) | 2,732,105) | |||||||
| Total debt | 7,004,360) | 6,991,526) | 7,000,184) | 7,190,845) | 7,295,215) | 7,278,767) | 7,009,399) | 5,985,728) | 5,191,335) | 4,848,097) | 4,172,068) | 4,127,426) | 4,156,765) | 4,130,710) | 4,130,975) | 4,131,573) | 4,089,001) | 3,967,801) | 2,911,993) | 2,763,045) | 2,574,038) | 2,732,660) | |||||||
| Shareholders’ equity | 7,260,238) | 7,000,179) | 6,749,119) | 6,451,884) | 6,297,705) | 5,935,251) | 5,541,772) | 6,093,806) | 6,188,491) | 5,961,624) | 6,261,986) | 6,189,801) | 6,137,135) | 6,249,925) | 6,661,238) | 6,985,519) | 7,356,071) | 7,209,454) | 6,702,500) | 6,648,295) | 6,749,160) | 6,572,669) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to equity1 | 0.96 | 1.00 | 1.04 | 1.11 | 1.16 | 1.23 | 1.26 | 0.98 | 0.84 | 0.81 | 0.67 | 0.67 | 0.68 | 0.66 | 0.62 | 0.59 | 0.56 | 0.55 | 0.43 | 0.42 | 0.38 | 0.42 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||||||
| Costco Wholesale Corp. | 0.23 | 0.24 | 0.25 | 0.32 | 0.33 | 0.27 | 0.26 | 0.28 | 0.29 | 0.30 | 0.32 | 0.33 | 0.34 | 0.40 | 0.43 | 0.46 | 0.49 | 0.51 | — | — | — | — | |||||||
| Target Corp. | 1.06 | 1.16 | 1.19 | 1.28 | 1.34 | 1.40 | 1.44 | 1.49 | 1.43 | 1.34 | 1.07 | 0.92 | 0.86 | 0.85 | 0.88 | 0.95 | 1.14 | 1.28 | — | — | — | — | |||||||
| Walmart Inc. | 0.56 | 0.62 | 0.56 | 0.70 | 0.63 | 0.68 | 0.58 | 0.71 | 0.65 | 0.68 | 0.51 | 0.52 | 0.58 | 0.62 | 0.60 | 0.62 | 0.69 | 0.85 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-08-02), 10-Q (reporting date: 2024-05-03), 10-K (reporting date: 2024-02-02), 10-Q (reporting date: 2023-11-03), 10-Q (reporting date: 2023-08-04), 10-Q (reporting date: 2023-05-05), 10-K (reporting date: 2023-02-03), 10-Q (reporting date: 2022-10-28), 10-Q (reporting date: 2022-07-29), 10-Q (reporting date: 2022-04-29), 10-K (reporting date: 2022-01-28), 10-Q (reporting date: 2021-10-29), 10-Q (reporting date: 2021-07-30), 10-Q (reporting date: 2021-04-30), 10-K (reporting date: 2021-01-29), 10-Q (reporting date: 2020-10-30), 10-Q (reporting date: 2020-07-31), 10-Q (reporting date: 2020-05-01), 10-K (reporting date: 2020-01-31), 10-Q (reporting date: 2019-11-01), 10-Q (reporting date: 2019-08-02), 10-Q (reporting date: 2019-05-03).
1 Q2 2025 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 7,004,360 ÷ 7,260,238 = 0.96
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibits a generally increasing trend over the analyzed periods. Beginning at approximately 2.73 billion USD in early May 2019, the debt saw a gradual rise with some fluctuations, reaching around 4.14 billion USD by early 2021. From that point, the increase accelerated more noticeably, peaking near 7.29 billion USD in mid-2023 before slightly decreasing towards 7.00 billion USD by August 2024.
- Shareholders’ Equity
- Shareholders’ equity displayed more variability over the same timeframe. Initially valued at about 6.57 billion USD in May 2019, equity levels grew steadily through mid-2020, peaking around 7.36 billion USD. Subsequently, the equity declined significantly over the following two years, reaching a low point near 5.54 billion USD by early 2023. After this trough, equity rebounded with consistent growth, reaching approximately 7.26 billion USD by August 2024.
- Debt to Equity Ratio
- The debt to equity ratio shows notable changes that reflect shifts in both debt and equity values. Starting at a low ratio of 0.42 in May 2019, it remained relatively stable under 0.7 through early 2022, despite some fluctuations. Thereafter, the ratio increased sharply, exceeding 1.0 by early 2023 and peaking at 1.26, indicative of a period where debt grew faster than equity and potentially heightened financial leverage. In the latest periods, the ratio declined steadily to about 0.96 by August 2024, suggesting an improvement in the balance between debt and equity.
- Summary and Insights
-
The overall financial structure shifted towards higher leverage between 2019 and early 2023, driven by a marked increase in debt coupled with decreasing equity during much of this period. This condition peaked in early 2023 when debt surpassed equity levels.
From early 2023 onward, the company appears to be mitigating leverage risks through a combination of slightly reduced debt and increasing equity, reversing the earlier trend. The recent trend suggests a strengthening equity base and a cautious approach to debt management, improving the firm's capital structure stability.
The temporary surge in debt and decline in equity through 2022 and early 2023 may warrant analysis of underlying causes, such as investments, acquisitions, or operational challenges during that time. The subsequent recovery in equity demonstrates resilience or strategic capital management adjustments.
Debt to Equity (including Operating Lease Liability)
Dollar General Corp., debt to equity (including operating lease liability) calculation (quarterly data)
| Aug 2, 2024 | May 3, 2024 | Feb 2, 2024 | Nov 3, 2023 | Aug 4, 2023 | May 5, 2023 | Feb 3, 2023 | Oct 28, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 29, 2021 | Jul 30, 2021 | Apr 30, 2021 | Jan 29, 2021 | Oct 30, 2020 | Jul 31, 2020 | May 1, 2020 | Jan 31, 2020 | Nov 1, 2019 | Aug 2, 2019 | May 3, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Short-term borrowings | —) | —) | —) | —) | —) | 250,000) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Current portion of long-term obligations | 769,194) | 769,139) | 768,645) | 750,000) | —) | —) | —) | —) | 900,635) | 900,635) | —) | —) | —) | —) | —) | —) | —) | 580) | 555) | 555) | 555) | 555) | |||||||
| Long-term obligations, excluding current portion | 6,235,166) | 6,222,387) | 6,231,539) | 6,440,845) | 7,295,215) | 7,028,767) | 7,009,399) | 5,985,728) | 4,290,700) | 3,947,462) | 4,172,068) | 4,127,426) | 4,156,765) | 4,130,710) | 4,130,975) | 4,131,573) | 4,089,001) | 3,967,221) | 2,911,438) | 2,762,490) | 2,573,483) | 2,732,105) | |||||||
| Total debt | 7,004,360) | 6,991,526) | 7,000,184) | 7,190,845) | 7,295,215) | 7,278,767) | 7,009,399) | 5,985,728) | 5,191,335) | 4,848,097) | 4,172,068) | 4,127,426) | 4,156,765) | 4,130,710) | 4,130,975) | 4,131,573) | 4,089,001) | 3,967,801) | 2,911,993) | 2,763,045) | 2,574,038) | 2,732,660) | |||||||
| Current portion of operating lease liabilities | 1,425,680) | 1,406,970) | 1,387,083) | 1,355,316) | 1,331,433) | 1,311,753) | 1,288,939) | 1,257,060) | 1,231,064) | 1,205,043) | 1,183,559) | 1,157,245) | 1,127,841) | 1,101,369) | 1,074,079) | 1,044,368) | 1,015,733) | 991,054) | 964,805) | 940,504) | 915,075) | 894,469) | |||||||
| Long-term operating lease liabilities, excluding current portion | 9,783,954) | 9,723,314) | 9,703,499) | 9,540,573) | 9,409,193) | 9,399,833) | 9,362,761) | 9,195,042) | 9,070,328) | 8,959,174) | 8,890,709) | 8,808,514) | 8,661,716) | 8,499,442) | 8,385,388) | 8,285,027) | 8,124,884) | 7,956,759) | 7,819,683) | 7,688,923) | 7,480,871) | 7,238,945) | |||||||
| Total debt (including operating lease liability) | 18,213,994) | 18,121,810) | 18,090,766) | 18,086,734) | 18,035,841) | 17,990,353) | 17,661,099) | 16,437,830) | 15,492,727) | 15,012,314) | 14,246,336) | 14,093,185) | 13,946,322) | 13,731,521) | 13,590,442) | 13,460,968) | 13,229,618) | 12,915,614) | 11,696,481) | 11,392,472) | 10,969,984) | 10,866,074) | |||||||
| Shareholders’ equity | 7,260,238) | 7,000,179) | 6,749,119) | 6,451,884) | 6,297,705) | 5,935,251) | 5,541,772) | 6,093,806) | 6,188,491) | 5,961,624) | 6,261,986) | 6,189,801) | 6,137,135) | 6,249,925) | 6,661,238) | 6,985,519) | 7,356,071) | 7,209,454) | 6,702,500) | 6,648,295) | 6,749,160) | 6,572,669) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to equity (including operating lease liability)1 | 2.51 | 2.59 | 2.68 | 2.80 | 2.86 | 3.03 | 3.19 | 2.70 | 2.50 | 2.52 | 2.28 | 2.28 | 2.27 | 2.20 | 2.04 | 1.93 | 1.80 | 1.79 | 1.75 | 1.71 | 1.63 | 1.65 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||||||
| Costco Wholesale Corp. | 0.32 | 0.33 | 0.35 | 0.43 | 0.45 | 0.36 | 0.35 | 0.38 | 0.40 | 0.42 | 0.44 | 0.45 | 0.48 | 0.55 | 0.58 | 0.62 | 0.66 | 0.69 | — | — | — | — | |||||||
| Target Corp. | 1.30 | 1.41 | 1.44 | 1.52 | 1.57 | 1.62 | 1.67 | 1.73 | 1.67 | 1.58 | 1.26 | 1.11 | 1.03 | 1.00 | 1.03 | 1.11 | 1.31 | 1.48 | — | — | — | — | |||||||
| Walmart Inc. | 0.73 | 0.79 | 0.73 | 0.88 | 0.81 | 0.88 | 0.77 | 0.90 | 0.84 | 0.87 | 0.69 | 0.70 | 0.76 | 0.80 | 0.78 | 0.84 | 0.92 | 1.11 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-08-02), 10-Q (reporting date: 2024-05-03), 10-K (reporting date: 2024-02-02), 10-Q (reporting date: 2023-11-03), 10-Q (reporting date: 2023-08-04), 10-Q (reporting date: 2023-05-05), 10-K (reporting date: 2023-02-03), 10-Q (reporting date: 2022-10-28), 10-Q (reporting date: 2022-07-29), 10-Q (reporting date: 2022-04-29), 10-K (reporting date: 2022-01-28), 10-Q (reporting date: 2021-10-29), 10-Q (reporting date: 2021-07-30), 10-Q (reporting date: 2021-04-30), 10-K (reporting date: 2021-01-29), 10-Q (reporting date: 2020-10-30), 10-Q (reporting date: 2020-07-31), 10-Q (reporting date: 2020-05-01), 10-K (reporting date: 2020-01-31), 10-Q (reporting date: 2019-11-01), 10-Q (reporting date: 2019-08-02), 10-Q (reporting date: 2019-05-03).
1 Q2 2025 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= 18,213,994 ÷ 7,260,238 = 2.51
2 Click competitor name to see calculations.
- Total Debt (Including Operating Lease Liability)
- The total debt has shown a consistent upward trend over the observed periods. Starting from approximately $10.87 billion in May 2019, it increased steadily to around $18.21 billion by August 2024. Notable increments can be observed particularly from early 2022 onwards, where debt rose significantly from approximately $15.01 billion to above $18 billion by mid-2024, indicating an expansion in leverage or liabilities during this timeframe.
- Shareholders' Equity
- Shareholders' equity initially increased from about $6.57 billion in May 2019 to a peak around May-July 2020 at $7.36 billion. Subsequently, equity exhibited a downward trajectory through to early 2023, hitting a low near $5.54 billion in February 2023. From this point onward, equity levels gradually recovered, rising towards $7.26 billion by August 2024. This pattern suggests fluctuations possibly due to earnings variations, dividends, share repurchases, or other equity movements affecting the net worth.
- Debt to Equity Ratio (Including Operating Lease Liability)
- The debt to equity ratio shows a clear increasing trend starting from 1.65 in May 2019 to a peak of approximately 3.19 in February 2023, reflecting a progressively higher leverage or increased reliance on debt financing relative to equity. After this peak, the ratio shows signs of improvement, decreasing to about 2.51 by August 2024. This indicates a reduction in relative debt burden or strengthening of equity capital in the most recent periods.
- Summary of Financial Position Trends
- The company’s financial leverage increased significantly over the analyzed period, as evidenced by the rising total debt and debt to equity ratio reaching a high point in early 2023. This suggests aggressive debt accumulation or operational lease commitments which outpaced growth in equity during that time. Meanwhile, shareholders' equity experienced volatility with an initial growth phase, followed by a decline and a more recent recovery phase. The later improvement in both equity and a declining debt to equity ratio signals efforts towards deleveraging or improved capital structure management from early 2023 onward.
Debt to Capital
Dollar General Corp., debt to capital calculation (quarterly data)
| Aug 2, 2024 | May 3, 2024 | Feb 2, 2024 | Nov 3, 2023 | Aug 4, 2023 | May 5, 2023 | Feb 3, 2023 | Oct 28, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 29, 2021 | Jul 30, 2021 | Apr 30, 2021 | Jan 29, 2021 | Oct 30, 2020 | Jul 31, 2020 | May 1, 2020 | Jan 31, 2020 | Nov 1, 2019 | Aug 2, 2019 | May 3, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Short-term borrowings | —) | —) | —) | —) | —) | 250,000) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Current portion of long-term obligations | 769,194) | 769,139) | 768,645) | 750,000) | —) | —) | —) | —) | 900,635) | 900,635) | —) | —) | —) | —) | —) | —) | —) | 580) | 555) | 555) | 555) | 555) | |||||||
| Long-term obligations, excluding current portion | 6,235,166) | 6,222,387) | 6,231,539) | 6,440,845) | 7,295,215) | 7,028,767) | 7,009,399) | 5,985,728) | 4,290,700) | 3,947,462) | 4,172,068) | 4,127,426) | 4,156,765) | 4,130,710) | 4,130,975) | 4,131,573) | 4,089,001) | 3,967,221) | 2,911,438) | 2,762,490) | 2,573,483) | 2,732,105) | |||||||
| Total debt | 7,004,360) | 6,991,526) | 7,000,184) | 7,190,845) | 7,295,215) | 7,278,767) | 7,009,399) | 5,985,728) | 5,191,335) | 4,848,097) | 4,172,068) | 4,127,426) | 4,156,765) | 4,130,710) | 4,130,975) | 4,131,573) | 4,089,001) | 3,967,801) | 2,911,993) | 2,763,045) | 2,574,038) | 2,732,660) | |||||||
| Shareholders’ equity | 7,260,238) | 7,000,179) | 6,749,119) | 6,451,884) | 6,297,705) | 5,935,251) | 5,541,772) | 6,093,806) | 6,188,491) | 5,961,624) | 6,261,986) | 6,189,801) | 6,137,135) | 6,249,925) | 6,661,238) | 6,985,519) | 7,356,071) | 7,209,454) | 6,702,500) | 6,648,295) | 6,749,160) | 6,572,669) | |||||||
| Total capital | 14,264,598) | 13,991,705) | 13,749,303) | 13,642,729) | 13,592,920) | 13,214,018) | 12,551,171) | 12,079,534) | 11,379,826) | 10,809,721) | 10,434,054) | 10,317,227) | 10,293,900) | 10,380,635) | 10,792,213) | 11,117,092) | 11,445,072) | 11,177,255) | 9,614,493) | 9,411,340) | 9,323,198) | 9,305,329) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to capital1 | 0.49 | 0.50 | 0.51 | 0.53 | 0.54 | 0.55 | 0.56 | 0.50 | 0.46 | 0.45 | 0.40 | 0.40 | 0.40 | 0.40 | 0.38 | 0.37 | 0.36 | 0.35 | 0.30 | 0.29 | 0.28 | 0.29 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||||||
| Costco Wholesale Corp. | 0.19 | 0.19 | 0.20 | 0.24 | 0.25 | 0.21 | 0.20 | 0.22 | 0.22 | 0.23 | 0.24 | 0.25 | 0.26 | 0.29 | 0.30 | 0.32 | 0.33 | 0.34 | — | — | — | — | |||||||
| Target Corp. | 0.51 | 0.54 | 0.54 | 0.56 | 0.57 | 0.58 | 0.59 | 0.60 | 0.59 | 0.57 | 0.52 | 0.48 | 0.46 | 0.46 | 0.47 | 0.49 | 0.53 | 0.56 | — | — | — | — | |||||||
| Walmart Inc. | 0.36 | 0.38 | 0.36 | 0.41 | 0.39 | 0.41 | 0.37 | 0.42 | 0.40 | 0.40 | 0.34 | 0.34 | 0.37 | 0.38 | 0.38 | 0.38 | 0.41 | 0.46 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-08-02), 10-Q (reporting date: 2024-05-03), 10-K (reporting date: 2024-02-02), 10-Q (reporting date: 2023-11-03), 10-Q (reporting date: 2023-08-04), 10-Q (reporting date: 2023-05-05), 10-K (reporting date: 2023-02-03), 10-Q (reporting date: 2022-10-28), 10-Q (reporting date: 2022-07-29), 10-Q (reporting date: 2022-04-29), 10-K (reporting date: 2022-01-28), 10-Q (reporting date: 2021-10-29), 10-Q (reporting date: 2021-07-30), 10-Q (reporting date: 2021-04-30), 10-K (reporting date: 2021-01-29), 10-Q (reporting date: 2020-10-30), 10-Q (reporting date: 2020-07-31), 10-Q (reporting date: 2020-05-01), 10-K (reporting date: 2020-01-31), 10-Q (reporting date: 2019-11-01), 10-Q (reporting date: 2019-08-02), 10-Q (reporting date: 2019-05-03).
1 Q2 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 7,004,360 ÷ 14,264,598 = 0.49
2 Click competitor name to see calculations.
- Total Debt
-
Total debt exhibited a general upward trend over the analyzed periods. Starting at approximately $2.73 billion, the debt level increased steadily with a noticeable acceleration beginning around May 2020, when it rose from about $3.97 billion to over $7.00 billion by early 2024. This indicates a substantial increase in leverage or borrowing activity over the timeframe, especially in the last few years.
- Total Capital
-
Total capital also increased throughout the periods, but at a comparatively more moderated pace than total debt. Beginning near $9.31 billion, it rose to approximately $14.26 billion by August 2024. Despite fluctuations, the growth in capital is consistent, showing an expansion of the company's capital base alongside rising debt.
- Debt to Capital Ratio
-
The debt to capital ratio shows a clear upward trajectory from 0.29 to a peak of approximately 0.56 in early 2023. After reaching this high point, the ratio slightly decreased to about 0.49 by mid-2024. This pattern indicates an increasing reliance on debt financing as a proportion of total capital up until early 2023, followed by a marginal reduction in leverage levels thereafter. The rise in the debt to capital ratio corresponds with the periods of strongest debt growth, suggesting increased financial risk or strategic leveraging during that time.
Debt to Capital (including Operating Lease Liability)
Dollar General Corp., debt to capital (including operating lease liability) calculation (quarterly data)
| Aug 2, 2024 | May 3, 2024 | Feb 2, 2024 | Nov 3, 2023 | Aug 4, 2023 | May 5, 2023 | Feb 3, 2023 | Oct 28, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 29, 2021 | Jul 30, 2021 | Apr 30, 2021 | Jan 29, 2021 | Oct 30, 2020 | Jul 31, 2020 | May 1, 2020 | Jan 31, 2020 | Nov 1, 2019 | Aug 2, 2019 | May 3, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Short-term borrowings | —) | —) | —) | —) | —) | 250,000) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Current portion of long-term obligations | 769,194) | 769,139) | 768,645) | 750,000) | —) | —) | —) | —) | 900,635) | 900,635) | —) | —) | —) | —) | —) | —) | —) | 580) | 555) | 555) | 555) | 555) | |||||||
| Long-term obligations, excluding current portion | 6,235,166) | 6,222,387) | 6,231,539) | 6,440,845) | 7,295,215) | 7,028,767) | 7,009,399) | 5,985,728) | 4,290,700) | 3,947,462) | 4,172,068) | 4,127,426) | 4,156,765) | 4,130,710) | 4,130,975) | 4,131,573) | 4,089,001) | 3,967,221) | 2,911,438) | 2,762,490) | 2,573,483) | 2,732,105) | |||||||
| Total debt | 7,004,360) | 6,991,526) | 7,000,184) | 7,190,845) | 7,295,215) | 7,278,767) | 7,009,399) | 5,985,728) | 5,191,335) | 4,848,097) | 4,172,068) | 4,127,426) | 4,156,765) | 4,130,710) | 4,130,975) | 4,131,573) | 4,089,001) | 3,967,801) | 2,911,993) | 2,763,045) | 2,574,038) | 2,732,660) | |||||||
| Current portion of operating lease liabilities | 1,425,680) | 1,406,970) | 1,387,083) | 1,355,316) | 1,331,433) | 1,311,753) | 1,288,939) | 1,257,060) | 1,231,064) | 1,205,043) | 1,183,559) | 1,157,245) | 1,127,841) | 1,101,369) | 1,074,079) | 1,044,368) | 1,015,733) | 991,054) | 964,805) | 940,504) | 915,075) | 894,469) | |||||||
| Long-term operating lease liabilities, excluding current portion | 9,783,954) | 9,723,314) | 9,703,499) | 9,540,573) | 9,409,193) | 9,399,833) | 9,362,761) | 9,195,042) | 9,070,328) | 8,959,174) | 8,890,709) | 8,808,514) | 8,661,716) | 8,499,442) | 8,385,388) | 8,285,027) | 8,124,884) | 7,956,759) | 7,819,683) | 7,688,923) | 7,480,871) | 7,238,945) | |||||||
| Total debt (including operating lease liability) | 18,213,994) | 18,121,810) | 18,090,766) | 18,086,734) | 18,035,841) | 17,990,353) | 17,661,099) | 16,437,830) | 15,492,727) | 15,012,314) | 14,246,336) | 14,093,185) | 13,946,322) | 13,731,521) | 13,590,442) | 13,460,968) | 13,229,618) | 12,915,614) | 11,696,481) | 11,392,472) | 10,969,984) | 10,866,074) | |||||||
| Shareholders’ equity | 7,260,238) | 7,000,179) | 6,749,119) | 6,451,884) | 6,297,705) | 5,935,251) | 5,541,772) | 6,093,806) | 6,188,491) | 5,961,624) | 6,261,986) | 6,189,801) | 6,137,135) | 6,249,925) | 6,661,238) | 6,985,519) | 7,356,071) | 7,209,454) | 6,702,500) | 6,648,295) | 6,749,160) | 6,572,669) | |||||||
| Total capital (including operating lease liability) | 25,474,232) | 25,121,989) | 24,839,885) | 24,538,618) | 24,333,546) | 23,925,604) | 23,202,871) | 22,531,636) | 21,681,218) | 20,973,938) | 20,508,322) | 20,282,986) | 20,083,457) | 19,981,446) | 20,251,680) | 20,446,487) | 20,585,689) | 20,125,068) | 18,398,981) | 18,040,767) | 17,719,144) | 17,438,743) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to capital (including operating lease liability)1 | 0.71 | 0.72 | 0.73 | 0.74 | 0.74 | 0.75 | 0.76 | 0.73 | 0.71 | 0.72 | 0.69 | 0.69 | 0.69 | 0.69 | 0.67 | 0.66 | 0.64 | 0.64 | 0.64 | 0.63 | 0.62 | 0.62 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||||||
| Costco Wholesale Corp. | 0.24 | 0.25 | 0.26 | 0.30 | 0.31 | 0.26 | 0.26 | 0.28 | 0.29 | 0.30 | 0.30 | 0.31 | 0.32 | 0.35 | 0.37 | 0.38 | 0.40 | 0.41 | — | — | — | — | |||||||
| Target Corp. | 0.56 | 0.58 | 0.59 | 0.60 | 0.61 | 0.62 | 0.63 | 0.63 | 0.62 | 0.61 | 0.56 | 0.53 | 0.51 | 0.50 | 0.51 | 0.53 | 0.57 | 0.60 | — | — | — | — | |||||||
| Walmart Inc. | 0.42 | 0.44 | 0.42 | 0.47 | 0.45 | 0.47 | 0.43 | 0.48 | 0.46 | 0.46 | 0.41 | 0.41 | 0.43 | 0.45 | 0.44 | 0.46 | 0.48 | 0.53 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-08-02), 10-Q (reporting date: 2024-05-03), 10-K (reporting date: 2024-02-02), 10-Q (reporting date: 2023-11-03), 10-Q (reporting date: 2023-08-04), 10-Q (reporting date: 2023-05-05), 10-K (reporting date: 2023-02-03), 10-Q (reporting date: 2022-10-28), 10-Q (reporting date: 2022-07-29), 10-Q (reporting date: 2022-04-29), 10-K (reporting date: 2022-01-28), 10-Q (reporting date: 2021-10-29), 10-Q (reporting date: 2021-07-30), 10-Q (reporting date: 2021-04-30), 10-K (reporting date: 2021-01-29), 10-Q (reporting date: 2020-10-30), 10-Q (reporting date: 2020-07-31), 10-Q (reporting date: 2020-05-01), 10-K (reporting date: 2020-01-31), 10-Q (reporting date: 2019-11-01), 10-Q (reporting date: 2019-08-02), 10-Q (reporting date: 2019-05-03).
1 Q2 2025 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 18,213,994 ÷ 25,474,232 = 0.71
2 Click competitor name to see calculations.
- Total Debt (including operating lease liability)
- The total debt shows a consistent upward trend over the analyzed periods, increasing from approximately $10.87 billion to roughly $18.21 billion. There are no significant decreases or reversals noted, indicating a steady growth in debt levels.
- Total Capital (including operating lease liability)
- Total capital also follows a generally increasing path, rising from about $17.44 billion to nearly $25.47 billion. Despite some minor fluctuations, the overall trajectory is upward, reflecting growth in the company’s capital base over time.
- Debt to Capital Ratio (including operating lease liability)
- The debt to capital ratio starts at 0.62 and gradually increases, peaking around 0.76 in early 2023. Following this peak, the ratio slightly declines to approximately 0.71 towards the latest period. This suggests an increasing reliance on debt financing relative to total capital for a majority of the timeframe, with a recent trend toward modest deleveraging or more balanced capital structure.
- Summary of Trends
- The data indicates that both total debt and total capital have been steadily increasing, with debt growing at a slightly faster pace relative to capital, as evidenced by the rising debt to capital ratio. The peak in leverage was observed around February 2023, after which the company appears to have taken steps to reduce its proportional debt load, though still maintaining a relatively high debt to capital ratio above 0.7. This pattern highlights the company’s strategic use of debt over equity to finance its operations and growth, coupled with a recent cautious approach to leverage.
Debt to Assets
Dollar General Corp., debt to assets calculation (quarterly data)
| Aug 2, 2024 | May 3, 2024 | Feb 2, 2024 | Nov 3, 2023 | Aug 4, 2023 | May 5, 2023 | Feb 3, 2023 | Oct 28, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 29, 2021 | Jul 30, 2021 | Apr 30, 2021 | Jan 29, 2021 | Oct 30, 2020 | Jul 31, 2020 | May 1, 2020 | Jan 31, 2020 | Nov 1, 2019 | Aug 2, 2019 | May 3, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Short-term borrowings | —) | —) | —) | —) | —) | 250,000) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Current portion of long-term obligations | 769,194) | 769,139) | 768,645) | 750,000) | —) | —) | —) | —) | 900,635) | 900,635) | —) | —) | —) | —) | —) | —) | —) | 580) | 555) | 555) | 555) | 555) | |||||||
| Long-term obligations, excluding current portion | 6,235,166) | 6,222,387) | 6,231,539) | 6,440,845) | 7,295,215) | 7,028,767) | 7,009,399) | 5,985,728) | 4,290,700) | 3,947,462) | 4,172,068) | 4,127,426) | 4,156,765) | 4,130,710) | 4,130,975) | 4,131,573) | 4,089,001) | 3,967,221) | 2,911,438) | 2,762,490) | 2,573,483) | 2,732,105) | |||||||
| Total debt | 7,004,360) | 6,991,526) | 7,000,184) | 7,190,845) | 7,295,215) | 7,278,767) | 7,009,399) | 5,985,728) | 5,191,335) | 4,848,097) | 4,172,068) | 4,127,426) | 4,156,765) | 4,130,710) | 4,130,975) | 4,131,573) | 4,089,001) | 3,967,801) | 2,911,993) | 2,763,045) | 2,574,038) | 2,732,660) | |||||||
| Total assets | 31,813,765) | 31,009,499) | 30,795,591) | 30,624,626) | 30,395,557) | 29,803,933) | 29,083,367) | 29,007,158) | 28,239,256) | 26,956,308) | 26,327,371) | 25,925,302) | 25,487,808) | 25,236,698) | 25,862,624) | 26,153,442) | 25,847,433) | 24,848,313) | 22,825,084) | 22,412,790) | 21,917,529) | 21,304,284) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to assets1 | 0.22 | 0.23 | 0.23 | 0.23 | 0.24 | 0.24 | 0.24 | 0.21 | 0.18 | 0.18 | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 | 0.13 | 0.12 | 0.12 | 0.13 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||||||
| Costco Wholesale Corp. | 0.08 | 0.08 | 0.08 | 0.10 | 0.10 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | 0.11 | 0.12 | 0.13 | 0.13 | 0.14 | 0.13 | — | — | — | — | |||||||
| Target Corp. | 0.27 | 0.29 | 0.29 | 0.28 | 0.30 | 0.31 | 0.30 | 0.30 | 0.29 | 0.28 | 0.25 | 0.23 | 0.25 | 0.25 | 0.25 | 0.25 | 0.30 | 0.32 | — | — | — | — | |||||||
| Walmart Inc. | 0.18 | 0.20 | 0.19 | 0.21 | 0.20 | 0.20 | 0.18 | 0.21 | 0.21 | 0.21 | 0.17 | 0.18 | 0.19 | 0.20 | 0.19 | 0.20 | 0.22 | 0.25 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-08-02), 10-Q (reporting date: 2024-05-03), 10-K (reporting date: 2024-02-02), 10-Q (reporting date: 2023-11-03), 10-Q (reporting date: 2023-08-04), 10-Q (reporting date: 2023-05-05), 10-K (reporting date: 2023-02-03), 10-Q (reporting date: 2022-10-28), 10-Q (reporting date: 2022-07-29), 10-Q (reporting date: 2022-04-29), 10-K (reporting date: 2022-01-28), 10-Q (reporting date: 2021-10-29), 10-Q (reporting date: 2021-07-30), 10-Q (reporting date: 2021-04-30), 10-K (reporting date: 2021-01-29), 10-Q (reporting date: 2020-10-30), 10-Q (reporting date: 2020-07-31), 10-Q (reporting date: 2020-05-01), 10-K (reporting date: 2020-01-31), 10-Q (reporting date: 2019-11-01), 10-Q (reporting date: 2019-08-02), 10-Q (reporting date: 2019-05-03).
1 Q2 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 7,004,360 ÷ 31,813,765 = 0.22
2 Click competitor name to see calculations.
- Total Debt
- The total debt of the company shows a generally increasing trend over the analyzed periods. Starting from approximately $2.73 billion in May 2019, the debt rises with moderate fluctuations to reach over $7 billion by early 2023 and stabilizes around this level through mid-2024. This reflects a significant increase in leverage over the time span, with the largest increments occurring between 2021 and 2023.
- Total Assets
- Total assets also exhibit a steady upward trajectory throughout the periods under review. Beginning near $21.3 billion in May 2019, assets grow consistently to exceed $31.8 billion by August 2024. This sustained asset growth indicates continued investment or expansion, contributing to the company’s scale and capacity.
- Debt to Assets Ratio
- The debt to assets ratio shows a gradual increase from 0.13 in May 2019 to a peak near 0.24 in early 2023, before slightly declining toward 0.22 by mid-2024. This ratio's upward movement points to an increasing reliance on debt relative to the company's asset base, suggesting that the company's financial leverage has grown substantially over the examined period. Despite the increase, the ratio remains below one-quarter, indicating that assets still significantly outweigh liabilities.
- Summary Insights
- Overall, the data reveals that the company has expanded both its asset base and debt level over the observed timeframe. The increasing debt-to-assets ratio highlights a shift towards greater financial leverage, which may be used to support growth initiatives but also implies elevated financial risk. The steady growth in total assets suggests successful asset accumulation or investment. The slight decrease in leverage after the 2023 peak may indicate a strategic move toward balancing debt with asset growth or efforts to reduce debt levels.
Debt to Assets (including Operating Lease Liability)
Dollar General Corp., debt to assets (including operating lease liability) calculation (quarterly data)
| Aug 2, 2024 | May 3, 2024 | Feb 2, 2024 | Nov 3, 2023 | Aug 4, 2023 | May 5, 2023 | Feb 3, 2023 | Oct 28, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 29, 2021 | Jul 30, 2021 | Apr 30, 2021 | Jan 29, 2021 | Oct 30, 2020 | Jul 31, 2020 | May 1, 2020 | Jan 31, 2020 | Nov 1, 2019 | Aug 2, 2019 | May 3, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Short-term borrowings | —) | —) | —) | —) | —) | 250,000) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Current portion of long-term obligations | 769,194) | 769,139) | 768,645) | 750,000) | —) | —) | —) | —) | 900,635) | 900,635) | —) | —) | —) | —) | —) | —) | —) | 580) | 555) | 555) | 555) | 555) | |||||||
| Long-term obligations, excluding current portion | 6,235,166) | 6,222,387) | 6,231,539) | 6,440,845) | 7,295,215) | 7,028,767) | 7,009,399) | 5,985,728) | 4,290,700) | 3,947,462) | 4,172,068) | 4,127,426) | 4,156,765) | 4,130,710) | 4,130,975) | 4,131,573) | 4,089,001) | 3,967,221) | 2,911,438) | 2,762,490) | 2,573,483) | 2,732,105) | |||||||
| Total debt | 7,004,360) | 6,991,526) | 7,000,184) | 7,190,845) | 7,295,215) | 7,278,767) | 7,009,399) | 5,985,728) | 5,191,335) | 4,848,097) | 4,172,068) | 4,127,426) | 4,156,765) | 4,130,710) | 4,130,975) | 4,131,573) | 4,089,001) | 3,967,801) | 2,911,993) | 2,763,045) | 2,574,038) | 2,732,660) | |||||||
| Current portion of operating lease liabilities | 1,425,680) | 1,406,970) | 1,387,083) | 1,355,316) | 1,331,433) | 1,311,753) | 1,288,939) | 1,257,060) | 1,231,064) | 1,205,043) | 1,183,559) | 1,157,245) | 1,127,841) | 1,101,369) | 1,074,079) | 1,044,368) | 1,015,733) | 991,054) | 964,805) | 940,504) | 915,075) | 894,469) | |||||||
| Long-term operating lease liabilities, excluding current portion | 9,783,954) | 9,723,314) | 9,703,499) | 9,540,573) | 9,409,193) | 9,399,833) | 9,362,761) | 9,195,042) | 9,070,328) | 8,959,174) | 8,890,709) | 8,808,514) | 8,661,716) | 8,499,442) | 8,385,388) | 8,285,027) | 8,124,884) | 7,956,759) | 7,819,683) | 7,688,923) | 7,480,871) | 7,238,945) | |||||||
| Total debt (including operating lease liability) | 18,213,994) | 18,121,810) | 18,090,766) | 18,086,734) | 18,035,841) | 17,990,353) | 17,661,099) | 16,437,830) | 15,492,727) | 15,012,314) | 14,246,336) | 14,093,185) | 13,946,322) | 13,731,521) | 13,590,442) | 13,460,968) | 13,229,618) | 12,915,614) | 11,696,481) | 11,392,472) | 10,969,984) | 10,866,074) | |||||||
| Total assets | 31,813,765) | 31,009,499) | 30,795,591) | 30,624,626) | 30,395,557) | 29,803,933) | 29,083,367) | 29,007,158) | 28,239,256) | 26,956,308) | 26,327,371) | 25,925,302) | 25,487,808) | 25,236,698) | 25,862,624) | 26,153,442) | 25,847,433) | 24,848,313) | 22,825,084) | 22,412,790) | 21,917,529) | 21,304,284) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to assets (including operating lease liability)1 | 0.57 | 0.58 | 0.59 | 0.59 | 0.59 | 0.60 | 0.61 | 0.57 | 0.55 | 0.56 | 0.54 | 0.54 | 0.55 | 0.54 | 0.53 | 0.51 | 0.51 | 0.52 | 0.51 | 0.51 | 0.50 | 0.51 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||||||
| Costco Wholesale Corp. | 0.11 | 0.11 | 0.12 | 0.14 | 0.14 | 0.13 | 0.13 | 0.13 | 0.14 | 0.14 | 0.14 | 0.14 | 0.15 | 0.16 | 0.17 | 0.18 | 0.19 | 0.17 | — | — | — | — | |||||||
| Target Corp. | 0.33 | 0.35 | 0.35 | 0.34 | 0.35 | 0.36 | 0.35 | 0.34 | 0.34 | 0.34 | 0.30 | 0.28 | 0.30 | 0.30 | 0.29 | 0.29 | 0.34 | 0.37 | — | — | — | — | |||||||
| Walmart Inc. | 0.24 | 0.25 | 0.24 | 0.27 | 0.25 | 0.26 | 0.24 | 0.26 | 0.26 | 0.27 | 0.23 | 0.24 | 0.26 | 0.27 | 0.25 | 0.27 | 0.29 | 0.32 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-08-02), 10-Q (reporting date: 2024-05-03), 10-K (reporting date: 2024-02-02), 10-Q (reporting date: 2023-11-03), 10-Q (reporting date: 2023-08-04), 10-Q (reporting date: 2023-05-05), 10-K (reporting date: 2023-02-03), 10-Q (reporting date: 2022-10-28), 10-Q (reporting date: 2022-07-29), 10-Q (reporting date: 2022-04-29), 10-K (reporting date: 2022-01-28), 10-Q (reporting date: 2021-10-29), 10-Q (reporting date: 2021-07-30), 10-Q (reporting date: 2021-04-30), 10-K (reporting date: 2021-01-29), 10-Q (reporting date: 2020-10-30), 10-Q (reporting date: 2020-07-31), 10-Q (reporting date: 2020-05-01), 10-K (reporting date: 2020-01-31), 10-Q (reporting date: 2019-11-01), 10-Q (reporting date: 2019-08-02), 10-Q (reporting date: 2019-05-03).
1 Q2 2025 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 18,213,994 ÷ 31,813,765 = 0.57
2 Click competitor name to see calculations.
- Total Debt (Including Operating Lease Liability)
- The total debt level exhibits a consistent upward trajectory over the observed periods, increasing from approximately $10.87 billion in early May 2019 to around $18.21 billion by August 2024. This steady rise reflects a sustained increase in the company's leverage position, with notable increments particularly from late 2021 onwards, indicating potential additional borrowing or reclassification of lease liabilities.
- Total Assets
- Total assets have similarly grown over the analyzed timeframe, expanding from roughly $21.30 billion in May 2019 to about $31.81 billion by August 2024. The asset base shows relatively steady appreciation with periodic accelerations, such as during the second half of 2021 through 2022, suggesting active investment or asset accumulation strategies supporting growth or operational requirements.
- Debt to Assets Ratio (Including Operating Lease Liability)
- The debt to assets ratio has generally trended upward, moving from about 0.51 in mid-2019 to a peak near 0.61 in early 2023. This indicates that the company's debt is growing somewhat faster than its assets on a relative basis during that period. Post early 2023, the ratio slightly declines but remains elevated around 0.57 by August 2024, suggesting cautious management of leverage or minor improvements in asset growth relative to debt.
- Overall Insights
- The data reflects a pattern of increasing debt and asset accumulation over the five-year span, with leverage intensifying particularly around 2022 and early 2023. The elevated but stable debt to asset ratio in recent periods implies the company is maintaining a moderately high leverage level while growing its asset base. This could reflect strategic financing decisions to support expansion or operational investments. The gradual moderation in leverage after the 2023 peak may indicate efforts to balance risk and capital structure sustainability.
Financial Leverage
Dollar General Corp., financial leverage calculation (quarterly data)
| Aug 2, 2024 | May 3, 2024 | Feb 2, 2024 | Nov 3, 2023 | Aug 4, 2023 | May 5, 2023 | Feb 3, 2023 | Oct 28, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 29, 2021 | Jul 30, 2021 | Apr 30, 2021 | Jan 29, 2021 | Oct 30, 2020 | Jul 31, 2020 | May 1, 2020 | Jan 31, 2020 | Nov 1, 2019 | Aug 2, 2019 | May 3, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Total assets | 31,813,765) | 31,009,499) | 30,795,591) | 30,624,626) | 30,395,557) | 29,803,933) | 29,083,367) | 29,007,158) | 28,239,256) | 26,956,308) | 26,327,371) | 25,925,302) | 25,487,808) | 25,236,698) | 25,862,624) | 26,153,442) | 25,847,433) | 24,848,313) | 22,825,084) | 22,412,790) | 21,917,529) | 21,304,284) | |||||||
| Shareholders’ equity | 7,260,238) | 7,000,179) | 6,749,119) | 6,451,884) | 6,297,705) | 5,935,251) | 5,541,772) | 6,093,806) | 6,188,491) | 5,961,624) | 6,261,986) | 6,189,801) | 6,137,135) | 6,249,925) | 6,661,238) | 6,985,519) | 7,356,071) | 7,209,454) | 6,702,500) | 6,648,295) | 6,749,160) | 6,572,669) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Financial leverage1 | 4.38 | 4.43 | 4.56 | 4.75 | 4.83 | 5.02 | 5.25 | 4.76 | 4.56 | 4.52 | 4.20 | 4.19 | 4.15 | 4.04 | 3.88 | 3.74 | 3.51 | 3.45 | 3.41 | 3.37 | 3.25 | 3.24 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||||||
| Costco Wholesale Corp. | 2.86 | 3.00 | 2.96 | 3.12 | 3.19 | 2.82 | 2.75 | 2.83 | 2.93 | 3.08 | 3.11 | 3.20 | 3.25 | 3.47 | 3.37 | 3.47 | 3.51 | 4.05 | — | — | — | — | |||||||
| Target Corp. | 3.88 | 3.98 | 4.12 | 4.49 | 4.44 | 4.49 | 4.75 | 5.05 | 4.95 | 4.72 | 4.20 | 3.94 | 3.46 | 3.37 | 3.55 | 3.80 | 3.82 | 4.01 | — | — | — | — | |||||||
| Walmart Inc. | 3.01 | 3.13 | 3.01 | 3.26 | 3.21 | 3.38 | 3.17 | 3.43 | 3.19 | 3.20 | 2.94 | 2.98 | 2.96 | 3.02 | 3.12 | 3.08 | 3.15 | 3.41 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-08-02), 10-Q (reporting date: 2024-05-03), 10-K (reporting date: 2024-02-02), 10-Q (reporting date: 2023-11-03), 10-Q (reporting date: 2023-08-04), 10-Q (reporting date: 2023-05-05), 10-K (reporting date: 2023-02-03), 10-Q (reporting date: 2022-10-28), 10-Q (reporting date: 2022-07-29), 10-Q (reporting date: 2022-04-29), 10-K (reporting date: 2022-01-28), 10-Q (reporting date: 2021-10-29), 10-Q (reporting date: 2021-07-30), 10-Q (reporting date: 2021-04-30), 10-K (reporting date: 2021-01-29), 10-Q (reporting date: 2020-10-30), 10-Q (reporting date: 2020-07-31), 10-Q (reporting date: 2020-05-01), 10-K (reporting date: 2020-01-31), 10-Q (reporting date: 2019-11-01), 10-Q (reporting date: 2019-08-02), 10-Q (reporting date: 2019-05-03).
1 Q2 2025 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 31,813,765 ÷ 7,260,238 = 4.38
2 Click competitor name to see calculations.
- Total Assets
-
Total assets display a steady upward trajectory over the analyzed periods. Starting from approximately $21.3 billion in early May 2019, the asset base expands consistently, reaching over $31.8 billion by August 2024. This growth reflects a sustained increase in the company's investment or resource base, with incremental rises noted across nearly every quarter. There is a minor fluctuation observed around early 2021, where assets slightly dip, but the overall trend remains strongly positive.
- Shareholders’ Equity
-
Shareholders’ equity exhibits a more volatile pattern compared to total assets. It begins at about $6.57 billion in May 2019 and initially increases to approximately $7.2 billion by May 2020. However, thereafter equity values experience several declines, particularly notable after early 2021, reaching a low near $5.54 billion by February 2023. Following this trough, equity recovers progressively, rising again to over $7.26 billion by August 2024. This fluctuation suggests periods of equity dilution or losses followed by recovery or capital infusion.
- Financial Leverage Ratio
-
The financial leverage ratio, defined as total assets divided by shareholders’ equity, trends upwards from 3.24 in May 2019 to a peak of 5.25 in February 2023. This indicates an increasing reliance on debt or liabilities relative to equity during this timeframe. After reaching the peak, the ratio declines gradually to approximately 4.38 by August 2024, implying a partial reduction in leverage. The initial increase in leverage aligns with the equity decline phase, while the subsequent decrease corresponds with the equity recovery phase.
- Overall Analysis
-
Over the examined quarters, the company has grown its asset base substantially, indicating expansion or increased investment in operations or holdings. The shareholders' equity shows significant fluctuations, with a marked drop post-2020 followed by a rebound in the most recent quarters. The rise and fall in financial leverage closely mirror these equity movements, signifying shifts in the capital structure and balance between debt and equity financing. The increasing leverage up to early 2023 may reflect strategic funding decisions or operational stress, while the subsequent deleveraging trend suggests improving financial stability or a strategic shift toward equity financing.
Interest Coverage
Dollar General Corp., interest coverage calculation (quarterly data)
| Aug 2, 2024 | May 3, 2024 | Feb 2, 2024 | Nov 3, 2023 | Aug 4, 2023 | May 5, 2023 | Feb 3, 2023 | Oct 28, 2022 | Jul 29, 2022 | Apr 29, 2022 | Jan 28, 2022 | Oct 29, 2021 | Jul 30, 2021 | Apr 30, 2021 | Jan 29, 2021 | Oct 30, 2020 | Jul 31, 2020 | May 1, 2020 | Jan 31, 2020 | Nov 1, 2019 | Aug 2, 2019 | May 3, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Net income | 374,190) | 363,317) | 401,813) | 276,246) | 468,835) | 514,380) | 659,135) | 526,167) | 678,030) | 552,657) | 597,433) | 487,031) | 637,019) | 677,749) | 642,743) | 574,260) | 787,601) | 650,446) | 535,437) | 365,550) | 426,555) | 385,013) | |||||||
| Add: Income tax expense | 107,642) | 110,354) | 100,724) | 74,939) | 139,142) | 143,440) | 199,221) | 155,282) | 192,298) | 153,824) | 160,730) | 139,359) | 173,119) | 190,709) | 189,213) | 158,572) | 215,700) | 185,845) | 159,871) | 101,603) | 126,410) | 101,291) | |||||||
| Add: Interest expense, net | 68,130) | 72,433) | 77,117) | 82,289) | 84,337) | 83,038) | 74,818) | 53,681) | 43,098) | 39,676) | 38,506) | 39,198) | 39,430) | 40,392) | 40,268) | 40,298) | 39,326) | 30,493) | 25,567) | 24,264) | 24,810) | 25,933) | |||||||
| Earnings before interest and tax (EBIT) | 549,962) | 546,104) | 579,654) | 433,474) | 692,314) | 740,858) | 933,174) | 735,130) | 913,426) | 746,157) | 796,669) | 665,588) | 849,568) | 908,850) | 872,224) | 773,130) | 1,042,627) | 866,784) | 720,875) | 491,417) | 577,775) | 512,237) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Interest coverage1 | 7.03 | 7.12 | 7.49 | 8.63 | 10.48 | 13.05 | 15.75 | 18.24 | 19.45 | 19.50 | 20.45 | 20.69 | 21.22 | 22.44 | 23.64 | 25.08 | 26.09 | 25.27 | 22.89 | 22.18 | 21.62 | 21.16 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||||||||
| Costco Wholesale Corp. | 63.12 | 60.17 | 58.63 | 55.49 | 54.08 | 54.80 | 54.04 | 53.89 | 54.62 | 52.73 | 50.62 | 48.01 | 45.54 | 41.68 | 40.06 | 37.81 | 35.56 | 36.58 | — | — | — | — | |||||||
| Target Corp. | 14.45 | 12.52 | 11.55 | 9.69 | 8.80 | 7.58 | 8.15 | 10.70 | 13.46 | 18.76 | 22.16 | 21.38 | 9.43 | 9.08 | 6.68 | 5.92 | 10.51 | 8.47 | — | — | — | — | |||||||
| Walmart Inc. | 8.83 | 10.58 | 9.14 | 9.94 | 9.35 | 8.19 | 9.00 | 7.63 | 11.00 | 10.43 | 10.38 | 7.37 | 8.59 | 9.31 | 9.88 | 11.98 | 10.50 | 9.08 | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2024-08-02), 10-Q (reporting date: 2024-05-03), 10-K (reporting date: 2024-02-02), 10-Q (reporting date: 2023-11-03), 10-Q (reporting date: 2023-08-04), 10-Q (reporting date: 2023-05-05), 10-K (reporting date: 2023-02-03), 10-Q (reporting date: 2022-10-28), 10-Q (reporting date: 2022-07-29), 10-Q (reporting date: 2022-04-29), 10-K (reporting date: 2022-01-28), 10-Q (reporting date: 2021-10-29), 10-Q (reporting date: 2021-07-30), 10-Q (reporting date: 2021-04-30), 10-K (reporting date: 2021-01-29), 10-Q (reporting date: 2020-10-30), 10-Q (reporting date: 2020-07-31), 10-Q (reporting date: 2020-05-01), 10-K (reporting date: 2020-01-31), 10-Q (reporting date: 2019-11-01), 10-Q (reporting date: 2019-08-02), 10-Q (reporting date: 2019-05-03).
1 Q2 2025 Calculation
Interest coverage
= (EBITQ2 2025
+ EBITQ1 2025
+ EBITQ4 2024
+ EBITQ3 2024)
÷ (Interest expenseQ2 2025
+ Interest expenseQ1 2025
+ Interest expenseQ4 2024
+ Interest expenseQ3 2024)
= (549,962 + 546,104 + 579,654 + 433,474)
÷ (68,130 + 72,433 + 77,117 + 82,289)
= 7.03
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT demonstrates a fluctuating trend over the observed periods. From May 2019 to January 2020, there is a notable increase, peaking at 720,875 thousand US dollars. This upward momentum continues into mid-2020, reaching a high of 1,042,627 thousand US dollars in July 2020. Following this peak, EBIT experiences volatility with declines and recoveries, characterized by a dip to 433,474 thousand US dollars by November 2023, which represents the lowest point in the series. The latest available data through August 2024 shows a slight recovery to approximately 550,000 thousand US dollars, suggesting challenges in sustaining the earlier high profitability levels.
- Interest expense, net
- The net interest expense shows an overall increasing pattern from 2019 through early 2023, starting at 25,933 thousand US dollars in May 2019 and rising to a peak of 84,337 thousand US dollars in November 2023. After this peak, there is a gradual decline observable in the last two reported quarters, decreasing to 68,130 thousand US dollars by August 2024. The rise in interest expense over time indicates a growing debt burden or increased cost of borrowing, while the recent reduction could reflect refinancing, debt reduction, or improved interest rates.
- Interest coverage ratio
- The interest coverage ratio, which measures the ability to cover interest expenses with EBIT, exhibits a clear downward trend across the full period. Initially, it is robust at values above 20, reaching a peak of 26.09 in mid-2020, aligning with the peak in EBIT and moderate interest expenses. However, this ratio consistently declines through subsequent quarters, eventually dropping to around 7.03 by August 2024. This significant reduction implies a diminished capacity to comfortably cover interest obligations, largely driven by the decrease in EBIT and the increase in interest expense, highlighting increasing financial risk related to interest coverage over the period.
- Overall financial insights
- The analysis of EBIT, interest expense, and interest coverage ratio reveals a period of strong operational profitability in 2020 followed by increased financial pressure. Despite early growth, EBIT volatility and eventual decline, combined with rising interest expenses, have resulted in a significantly deteriorated interest coverage ratio. This trend suggests increasing leverage risk and potentially tighter financial conditions. The gradual reduction in interest expense in the most recent quarters may provide some relief; however, the ability to generate earnings sufficiently exceeding interest costs remains considerably lower than in prior years, signaling a need for strategic financial management to strengthen credit metrics going forward.