Dollar General Corporation (DG)

Net profit margin

		Jan 31, 2025	Feb 2, 2024	Jan 31, 2024	Feb 3, 2023	Jan 31, 2023
Net income	US$ in thousands	1,125,250	1,661,270	1,661,270	2,415,990	2,415,990
Revenue	US$ in thousands	40,612,300	38,364,800	38,691,600	37,633,600	37,844,900
Net profit margin		2.77%	4.33%	4.29%	6.42%	6.38%

January 31, 2025 calculation

Net profit margin = Net income ÷ Revenue
= $1,125,250K ÷ $40,612,300K
= 2.77%

The net profit margin of Dollar General Corporation has shown a gradual decline over the past few years. As of January 31, 2023, the net profit margin stood at 6.38%, slightly increasing to 6.42% by February 3, 2023. However, there was a notable decrease in profitability by January 31, 2024, with the net profit margin dropping to 4.29% and further to 4.33% by February 2, 2024. The trend continued with a significant decrease to 2.77% as of January 31, 2025. This decline in net profit margin suggests that the company may be facing challenges in maintaining profitability relative to its revenue, which warrants further investigation into its cost structure and internal operations.