Financial Analysis of Dollar General Corporation

Abstract

This paper focuses on financial analysis of Dollar General Corporation as one of the best company that one can invest in, and how the company performs financially with its annual operations. I will also discuss the company’s overview, evaluate the company’s vulnerability to current threats and stock price analysis. Managers and investors can also benefit from the understanding of the financial statements, when making importance decision about the operations of a company. Financial management plays a major role in a business. Additionally, financial statements such as the balance sheet and income statement and statement of cash-flow will serve as significant components in the analysis of this company.

Introduction

Financial analysis of a company is very important factor when it comes to investments. Financial analysis it is used to analyze whether an entity or company is stable, solvent or profitable enough to be invested in (investopedia, 2011).There are three financial statements that play a vital role in in the analysis which is the income statement, balance sheet, statement of cash-flow. These financial statements provide information where the company’s money originated from, how is used, and where it is currently. In this analysis I am going to analyze Dollar General Corporation’s past and future performances and if it is the best company to invest in.

Company Overview

Dollar General Corporation is one of the largest nation’s retail discount store .The first store of Dollar General was opened on 1st June 1955 by J.L. Turner and his son Cal Turner Sr. The concept was simple - no item in store would cost more than a dollar (DG,2011)(Appendix 1)

Dollar General Corporation has been delivering value to shoppers for more than 70 years. Dollar General helps shoppers Save