The company's coverage ratios when it comes to debt seem to be fine. Debt to equity is a little high at 1.1x however the company has a strong balance sheet and an interest coverage ratio of 10.5x is very strong.
The company's main cause to the drawdown is actually just a weakening consumer. Dollar General gets improperly labelled as a dollar store a lot. I even used to think that back in the day. However, it's really just a retail store that maybe does focus on the discount element here and there but has a much broader product base than say a.... Dollarama.
I think this is just a situation of a much tighter consumer who is really dialing back spending. Shoppers at Dollar General are typically going to be those with relatively low salaries, and ones that are really feeling the sting of inflationary impacts over the last year here.
I'm not really a huge fan of scooping up companies after a cut in guidance. Stock price wise, we often need to see a turnaround in terms of business operations before share prices start to recover, and judging by the commentary made by the company, they expect their consumers to stay pretty soft for the next while here.