Question
Analyze Dollar General Dollar General Corporation (DG) is a discount retailer with more than 12,000 stores. It offers a wide range of merchandise normally
Analyze Dollar General Dollar General Corporation (DG) is a discount retailer with more than 12,000 stores. It offers a wide range of merchandise normally for $10 or less. The following data (in millions) were taken from recent financial statements of Dollar General: Total sales Total assets: Year 2 Year 1 $25,525 $23,471 Beginning of year 12,517 11,672 End of year 13,204 12,517 a. Compute the asset turnover ratio for Year 2 and Year 1. Round to two decimal places. Year 2 Year 1 Asset turnover ratio b. Interpret the change in the asset turnover ratio from Year 1 to Year 2. These analyses indicate an increase in the effectiveness in the use of assets to generate revenues for each dollar of assets. A comparison with similar companies or industry averages would be helpful in making a more definitive statement on the effectiveness of the use of the assets.
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