Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Dollar General Corp., short-term (operating) activity ratios
Based on: 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), 10-K (reporting date: 2018-02-02).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Dollar General Corp. inventory turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Dollar General Corp. payables turnover ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Dollar General Corp. working capital turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Dollar General Corp. number of days of inventory outstanding deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Dollar General Corp. number of days of payables outstanding increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |
Inventory Turnover
Dollar General Corp., inventory turnover calculation, comparison to benchmarks
| Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | Feb 1, 2019 | Feb 2, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cost of goods sold | 26,024,765) | 23,407,443) | 23,027,977) | 19,264,912) | 17,821,173) | 16,249,608) | |
| Merchandise inventories | 6,760,733) | 5,614,325) | 5,247,477) | 4,676,848) | 4,097,004) | 3,609,025) | |
| Short-term Activity Ratio | |||||||
| Inventory turnover1 | 3.85 | 4.17 | 4.39 | 4.12 | 4.35 | 4.50 | |
| Benchmarks | |||||||
| Inventory Turnover, Competitors2 | |||||||
| Costco Wholesale Corp. | 12.77 | 11.13 | 12.01 | 11.84 | 11.66 | 11.16 | |
| Target Corp. | 6.09 | 5.39 | 6.21 | 6.10 | 5.61 | — | |
| Walmart Inc. | 8.20 | 7.59 | 9.35 | 8.88 | 8.70 | — | |
| Inventory Turnover, Sector | |||||||
| Consumer Staples Distribution & Retail | 8.75 | 7.96 | 9.41 | 9.05 | 8.77 | — | |
| Inventory Turnover, Industry | |||||||
| Consumer Staples | 8.21 | 7.60 | 8.82 | 8.40 | 8.24 | — | |
Based on: 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), 10-K (reporting date: 2018-02-02).
1 2023 Calculation
Inventory turnover = Cost of goods sold ÷ Merchandise inventories
= 26,024,765 ÷ 6,760,733 = 3.85
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Dollar General Corp. inventory turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Receivables Turnover
Dollar General Corp., receivables turnover calculation, comparison to benchmarks
| Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | Feb 1, 2019 | Feb 2, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net sales | 37,844,863) | 34,220,449) | 33,746,839) | 27,753,973) | 25,625,043) | 23,470,967) | |
| Accounts receivable | —) | —) | —) | —) | —) | —) | |
| Short-term Activity Ratio | |||||||
| Receivables turnover1 | — | — | — | — | — | — | |
| Benchmarks | |||||||
| Receivables Turnover, Competitors2 | |||||||
| Costco Wholesale Corp. | 104.03 | 99.39 | 106.52 | 105.30 | 97.30 | 82.94 | |
| Target Corp. | 92.03 | 125.28 | 146.43 | 154.88 | 117.77 | — | |
| Walmart Inc. | 76.37 | 68.57 | 85.21 | 82.74 | 81.22 | — | |
| Receivables Turnover, Sector | |||||||
| Consumer Staples Distribution & Retail | 83.53 | 78.82 | 93.82 | 91.25 | 86.88 | — | |
| Receivables Turnover, Industry | |||||||
| Consumer Staples | 35.38 | 34.89 | 38.54 | 37.27 | 34.73 | — | |
Based on: 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), 10-K (reporting date: 2018-02-02).
1 2023 Calculation
Receivables turnover = Net sales ÷ Accounts receivable
= 37,844,863 ÷ 0 = —
2 Click competitor name to see calculations.
Payables Turnover
Dollar General Corp., payables turnover calculation, comparison to benchmarks
| Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | Feb 1, 2019 | Feb 2, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cost of goods sold | 26,024,765) | 23,407,443) | 23,027,977) | 19,264,912) | 17,821,173) | 16,249,608) | |
| Accounts payable | 3,552,991) | 3,738,604) | 3,614,089) | 2,860,682) | 2,385,469) | 2,009,771) | |
| Short-term Activity Ratio | |||||||
| Payables turnover1 | 7.32 | 6.26 | 6.37 | 6.73 | 7.47 | 8.09 | |
| Benchmarks | |||||||
| Payables Turnover, Competitors2 | |||||||
| Costco Wholesale Corp. | 12.16 | 11.17 | 10.49 | 10.23 | 11.38 | 10.96 | |
| Target Corp. | 6.10 | 4.84 | 5.15 | 5.53 | 5.46 | — | |
| Walmart Inc. | 8.63 | 7.76 | 8.55 | 8.40 | 8.19 | — | |
| Payables Turnover, Sector | |||||||
| Consumer Staples Distribution & Retail | 8.95 | 7.94 | 8.40 | 8.36 | 8.34 | — | |
| Payables Turnover, Industry | |||||||
| Consumer Staples | 7.10 | 6.51 | 6.79 | 6.85 | 6.89 | — | |
Based on: 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), 10-K (reporting date: 2018-02-02).
1 2023 Calculation
Payables turnover = Cost of goods sold ÷ Accounts payable
= 26,024,765 ÷ 3,552,991 = 7.32
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Dollar General Corp. payables turnover ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level. |
Working Capital Turnover
Dollar General Corp., working capital turnover calculation, comparison to benchmarks
| Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | Feb 1, 2019 | Feb 2, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current assets | 7,581,009) | 6,303,843) | 6,914,219) | 5,177,868) | 4,663,020) | 4,247,852) | |
| Less: Current liabilities | 5,887,768) | 5,979,357) | 5,710,783) | 4,543,560) | 3,015,857) | 2,964,878) | |
| Working capital | 1,693,241) | 324,486) | 1,203,436) | 634,308) | 1,647,163) | 1,282,974) | |
| Net sales | 37,844,863) | 34,220,449) | 33,746,839) | 27,753,973) | 25,625,043) | 23,470,967) | |
| Short-term Activity Ratio | |||||||
| Working capital turnover1 | 22.35 | 105.46 | 28.04 | 43.75 | 15.56 | 18.29 | |
| Benchmarks | |||||||
| Working Capital Turnover, Competitors2 | |||||||
| Costco Wholesale Corp. | 103.53 | 319.10 | 3,000.81 | 49.82 | 602.22 | 381.36 | |
| Target Corp. | — | — | 146.43 | — | — | — | |
| Walmart Inc. | — | — | — | — | — | — | |
| Working Capital Turnover, Sector | |||||||
| Consumer Staples Distribution & Retail | — | — | — | — | — | — | |
| Working Capital Turnover, Industry | |||||||
| Consumer Staples | — | — | — | — | — | — | |
Based on: 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), 10-K (reporting date: 2018-02-02).
1 2023 Calculation
Working capital turnover = Net sales ÷ Working capital
= 37,844,863 ÷ 1,693,241 = 22.35
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Dollar General Corp. working capital turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Average Inventory Processing Period
Dollar General Corp., average inventory processing period calculation, comparison to benchmarks
| Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | Feb 1, 2019 | Feb 2, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Inventory turnover | 3.85 | 4.17 | 4.39 | 4.12 | 4.35 | 4.50 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average inventory processing period1 | 95 | 88 | 83 | 89 | 84 | 81 | |
| Benchmarks (no. days) | |||||||
| Average Inventory Processing Period, Competitors2 | |||||||
| Costco Wholesale Corp. | 29 | 33 | 30 | 31 | 31 | 33 | |
| Target Corp. | 60 | 68 | 59 | 60 | 65 | — | |
| Walmart Inc. | 45 | 48 | 39 | 41 | 42 | — | |
| Average Inventory Processing Period, Sector | |||||||
| Consumer Staples Distribution & Retail | 42 | 46 | 39 | 40 | 42 | — | |
| Average Inventory Processing Period, Industry | |||||||
| Consumer Staples | 44 | 48 | 41 | 43 | 44 | — | |
Based on: 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), 10-K (reporting date: 2018-02-02).
1 2023 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 3.85 = 95
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Dollar General Corp. number of days of inventory outstanding deteriorated from 2021 to 2022 and from 2022 to 2023. |
Average Receivable Collection Period
Dollar General Corp., average receivable collection period calculation, comparison to benchmarks
| Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | Feb 1, 2019 | Feb 2, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Receivables turnover | — | — | — | — | — | — | |
| Short-term Activity Ratio (no. days) | |||||||
| Average receivable collection period1 | — | — | — | — | — | — | |
| Benchmarks (no. days) | |||||||
| Average Receivable Collection Period, Competitors2 | |||||||
| Costco Wholesale Corp. | 4 | 4 | 3 | 3 | 4 | 4 | |
| Target Corp. | 4 | 3 | 2 | 2 | 3 | — | |
| Walmart Inc. | 5 | 5 | 4 | 4 | 4 | — | |
| Average Receivable Collection Period, Sector | |||||||
| Consumer Staples Distribution & Retail | 4 | 5 | 4 | 4 | 4 | — | |
| Average Receivable Collection Period, Industry | |||||||
| Consumer Staples | 10 | 10 | 9 | 10 | 11 | — | |
Based on: 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), 10-K (reporting date: 2018-02-02).
1 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ — = —
2 Click competitor name to see calculations.
Operating Cycle
Dollar General Corp., operating cycle calculation, comparison to benchmarks
No. days
| Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | Feb 1, 2019 | Feb 2, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 95 | 88 | 83 | 89 | 84 | 81 | |
| Average receivable collection period | — | — | — | — | — | — | |
| Short-term Activity Ratio | |||||||
| Operating cycle1 | — | — | — | — | — | — | |
| Benchmarks | |||||||
| Operating Cycle, Competitors2 | |||||||
| Costco Wholesale Corp. | 33 | 37 | 33 | 34 | 35 | 37 | |
| Target Corp. | 64 | 71 | 61 | 62 | 68 | — | |
| Walmart Inc. | 50 | 53 | 43 | 45 | 46 | — | |
| Operating Cycle, Sector | |||||||
| Consumer Staples Distribution & Retail | 46 | 51 | 43 | 44 | 46 | — | |
| Operating Cycle, Industry | |||||||
| Consumer Staples | 54 | 58 | 50 | 53 | 55 | — | |
Based on: 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), 10-K (reporting date: 2018-02-02).
1 2023 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 95 + — = —
2 Click competitor name to see calculations.
Average Payables Payment Period
Dollar General Corp., average payables payment period calculation, comparison to benchmarks
| Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | Feb 1, 2019 | Feb 2, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Payables turnover | 7.32 | 6.26 | 6.37 | 6.73 | 7.47 | 8.09 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average payables payment period1 | 50 | 58 | 57 | 54 | 49 | 45 | |
| Benchmarks (no. days) | |||||||
| Average Payables Payment Period, Competitors2 | |||||||
| Costco Wholesale Corp. | 30 | 33 | 35 | 36 | 32 | 33 | |
| Target Corp. | 60 | 75 | 71 | 66 | 67 | — | |
| Walmart Inc. | 42 | 47 | 43 | 43 | 45 | — | |
| Average Payables Payment Period, Sector | |||||||
| Consumer Staples Distribution & Retail | 41 | 46 | 43 | 44 | 44 | — | |
| Average Payables Payment Period, Industry | |||||||
| Consumer Staples | 51 | 56 | 54 | 53 | 53 | — | |
Based on: 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), 10-K (reporting date: 2018-02-02).
1 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 7.32 = 50
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Dollar General Corp. number of days of payables outstanding increased from 2021 to 2022 but then decreased significantly from 2022 to 2023. |
Cash Conversion Cycle
Dollar General Corp., cash conversion cycle calculation, comparison to benchmarks
No. days
| Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | Feb 1, 2019 | Feb 2, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 95 | 88 | 83 | 89 | 84 | 81 | |
| Average receivable collection period | — | — | — | — | — | — | |
| Average payables payment period | 50 | 58 | 57 | 54 | 49 | 45 | |
| Short-term Activity Ratio | |||||||
| Cash conversion cycle1 | — | — | — | — | — | — | |
| Benchmarks | |||||||
| Cash Conversion Cycle, Competitors2 | |||||||
| Costco Wholesale Corp. | 3 | 4 | -2 | -2 | 3 | 4 | |
| Target Corp. | 4 | -4 | -10 | -4 | 1 | — | |
| Walmart Inc. | 8 | 6 | 0 | 2 | 1 | — | |
| Cash Conversion Cycle, Sector | |||||||
| Consumer Staples Distribution & Retail | 5 | 5 | 0 | 0 | 2 | — | |
| Cash Conversion Cycle, Industry | |||||||
| Consumer Staples | 3 | 2 | -4 | 0 | 2 | — | |
Based on: 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), 10-K (reporting date: 2018-02-02).
1 2023 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 95 + — – 50 = —
2 Click competitor name to see calculations.