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Dollar General Financial Strength

: 5 (As of Apr. 2022)
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Dollar General has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Dollar General's Interest Coverage for the quarter that ended in Apr. 2022 was 18.81. Dollar General's debt to revenue ratio for the quarter that ended in Apr. 2022 was 0.43. As of today, Dollar General's Altman Z-Score is 3.40.


Competitive Comparison

For the Discount Stores subindustry, Dollar General's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Dollar General Financial Strength Distribution

For the Retail - Defensive industry and Consumer Defensive sector, Dollar General's Financial Strength distribution charts can be found below:

* The bar in red indicates where Dollar General's Financial Strength falls into.



Dollar General Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Dollar General's Interest Expense for the months ended in Apr. 2022 was $-40 Mil. Its Operating Income for the months ended in Apr. 2022 was $746 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Apr. 2022 was $12,907 Mil.

Dollar General's Interest Coverage for the quarter that ended in Apr. 2022 is

Interest Coverage=-1*Operating Income (Q: Apr. 2022 )/Interest Expense (Q: Apr. 2022 )
=-1*746.157/-39.676
=18.81

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Dollar General's Debt to Revenue Ratio for the quarter that ended in Apr. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Apr. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(2105.678 + 12906.636) / 35005.408
=0.43

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Dollar General has a Z-score of 3.40, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.4 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Dollar General  (NYSE:DG) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Dollar General has the Financial Strength Rank of 5.


Dollar General Financial Strength Related Terms

Thank you for viewing the detailed overview of Dollar General's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Dollar General Business Description

Dollar General logo
Address
100 Mission Ridge, Goodlettsville, TN, USA, 37072
A leading American discount retailer, Dollar General operates over 17,000 stores in 46 states, selling branded and private-label products across a wide variety of categories. In fiscal 2020, more than 76% of net sales came from consumables (including paper and cleaning products, packaged and perishable food, tobacco, and health and beauty items), 12% from seasonal merchandise (such as toys, greeting cards, decorations, and gardening supplies), 7% from home products (for example, kitchen supplies, small appliances, and cookware), and 5% from basic apparel. Stores average roughly 7,400 square feet, and about 75% of Dollar General locations are in towns of 20,000 or fewer people. The firm emphasizes value, with more than 80% of its items sold at everyday low prices of $5 or less.
Executives
Zuazo Antonio officer: EVP, Global Supply Chain 100 MISSION RIDGE GOODLETTSVILLE TN 37072
Taylor Emily C officer: EVP & Chief Merchandising Ofc 100 MISSION RIDGE GOODLETTSVILLE TN 37072
Sandler Debra A. director KEURIG DR PEPPER INC. 53 SOUTH AVE. BURLINGTON MA 01803
Sunderland Steven G officer: EVP, Store Operations 100 MISSION RIDGE GOODLETTSVILLE TN 37072
Reardon Kathleen A officer: SVP & Chief People Officer 100 MISSION RIDGE GOODLETTSVILLE TN 37072
Santana Ralph director 400 ATLANTIC STREET SUITE 1500 STAMFORD CT 06901
Mcguire Timothy I director 100 MISSION RIDGE GOODLETTSVILLE TN 37072
Reiser Jason S officer: EVP & Chief Merchandising Ofc VITAMIN SHOPPE, INC. 300 HARMON MEADOW BOULEVARD SECAUCUS NJ 07094
Wenkoff Carman R officer: EVP & Chief Information Ofc 100 MISSION RIDGE GOODLETTSVILLE TN 37072
Kindy Michael J officer: SVP, Global Supply Chain 100 MISSION RIDGE GOODLETTSVILLE TN 37072
Thorpe James W officer: EVP, Chief Merchandising Ofc 100 MISSION RIDGE GOODLETTSVILLE TN 37072
Garratt John W officer: Interim CFO 100 MISSION RIDGE GOODLETTSVILLE TN 37072
Owen Jeffery officer: EVP, Store Operations C/O KIRKLAND'S, INC. 5310 MARYLAND WAY BRENTWOOD TN 37027
Price Paula A director ONE CVS DRIVE WOONSOCKET RI 02895
D Arezzo David W officer: EVP/Chief Merchandising Ofc

Dollar General Headlines

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