Chapter 5, Problem 5.2MAD

Analyze Dollar General

Dollar General Corporation (DG) is a discount retailer with more than 12,000 stores. It offer a wide range of merchandise normally for $10 or less. The following data (in millions) were taken from recent financial statements of Dollar General:

	Year 2	Year 1
Total sales	$21,987	$20,369
Total assets:
Beginning of year	11,258	11,209
End of year	11,672	11,258

  a.    Compute the asset turnover ratio for Year 2 and Year 1. Round to two decimal places.

b.    Interpret the change in the asset turnover ratio from Year 1 to Year 2.