Dollar General Corporation (DG)
Profitability ratios
Return on sales
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 30.55% | 31.41% | 31.74% | 31.90% | 30.70% |
| Operating profit margin | 6.38% | 8.84% | 9.46% | 10.58% | 8.33% |
| Pretax margin | 5.52% | 8.28% | 8.99% | 10.13% | 7.96% |
| Net profit margin | 4.33% | 6.42% | 7.04% | 7.90% | 6.19% |
Dollar General Corporation's profitability ratios show a slight decline in profitability over the past five years. The gross profit margin has fluctuated around the low 30% range, indicating the company's ability to generate profit after deducting the cost of goods sold. However, there has been a slight downward trend in this margin.
The operating profit margin, which measures the company's efficiency in managing operating expenses, has shown a notable decline from 10.58% in 2021 to 6.38% in 2024. This suggests that Dollar General may be facing challenges in controlling its operating costs or that its revenue growth may have slowed down.
The pretax margin, which reflects the company's ability to generate profit before accounting for taxes, has also experienced a decline from 10.13% in 2021 to 5.52% in 2024. This indicates that the company may be experiencing challenges in maintaining profitability at the pre-tax level.
Lastly, the net profit margin, which represents the company's bottom line profitability after all expenses have been deducted, has shown a consistent downward trend over the past five years. This decline suggests that Dollar General may be facing increasing competition, cost pressures, or other factors impacting its overall profitability.
In summary, Dollar General Corporation's profitability ratios indicate a trend of declining profitability over the past five years, potentially signaling challenges in managing costs and sustaining profit margins in a competitive retail environment.
Return on investment
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.94% | 11.44% | 12.23% | 13.74% | 10.09% |
| Return on assets (ROA) | 5.39% | 8.31% | 9.11% | 10.27% | 7.50% |
| Return on total capital | 36.25% | 60.05% | 30.87% | 53.36% | 23.95% |
| Return on equity (ROE) | 24.61% | 43.60% | 38.31% | 39.86% | 25.55% |
Dollar General Corporation's profitability ratios have shown some fluctuations over the past five years. The operating return on assets (Operating ROA) has decreased from 13.74% in 2021 to 7.94% in 2024, indicating a decline in the company's ability to generate operating income relative to its total assets.
Similarly, the Return on Assets (ROA) has also decreased from 10.27% in 2021 to 5.39% in 2024, suggesting a decrease in the company's ability to generate profits relative to its total assets.
On the other hand, the Return on Total Capital has been volatile but overall has shown an increasing trend, with a significant spike in 2023 at 60.05%. This ratio measures the company's ability to generate returns for all its investors, including both debt and equity holders.
The Return on Equity (ROE) has fluctuated over the years, with a notable increase in 2023 to 43.60%, showing the company's ability to generate profits for its shareholders based on their investment in the company.
Overall, Dollar General Corporation's profitability ratios indicate varying levels of efficiency in generating profits from its assets and capital over the years, with some fluctuations but generally strong returns on equity and total capital in certain years.