Earnings Analysis: Dollar General Corp. (NYSE:DG)

Earnings Quality

DG-US has reported relatively strong net income margin for the last twelve months (5.8% vs. peer median of 4.2%). This strong margin performance was accompanied by a level of accruals that was around peer median (1.3% vs. peer median of 1.4%) suggesting that the reported net income is supported by a reasonable level of accruals.

DG-US’s accruals over the last twelve months are around zero. This level is also around the peer median suggesting a proper level of reserves.