Dollar General Corporation (DG)

Net profit margin

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Feb 2, 2024	Jan 31, 2024	Nov 3, 2023	Oct 31, 2023	Aug 4, 2023	Jul 31, 2023	May 5, 2023	Apr 30, 2023	Feb 3, 2023	Jan 31, 2023	Oct 31, 2022	Oct 28, 2022	Jul 31, 2022	Jul 29, 2022	Apr 30, 2022	Apr 29, 2022
Net income (ttm)	US$ in thousands	1,125,253	1,335,849	1,541,133	1,443,189	1,356,118	1,423,140	1,490,162	1,728,296	1,966,430	2,156,730	2,347,030	2,358,817	2,370,604	2,389,499	2,408,394	2,434,884	2,461,374	2,380,777	2,300,180	2,234,554
Revenue (ttm)	US$ in thousands	40,612,320	40,089,220	39,764,330	39,165,720	38,945,780	38,876,220	38,813,890	38,544,930	38,193,680	38,609,940	39,016,660	39,138,720	39,207,100	38,504,710	37,684,430	36,970,890	36,271,360	35,497,100	34,727,420	34,493,910
Net profit margin		2.77%	3.33%	3.88%	3.68%	3.48%	3.66%	3.84%	4.48%	5.15%	5.59%	6.02%	6.03%	6.05%	6.21%	6.39%	6.59%	6.79%	6.71%	6.62%	6.48%

January 31, 2025 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $1,125,253K ÷ $40,612,320K
= 2.77%

Based on the provided data, Dollar General Corporation's net profit margin has demonstrated a downward trend over the analyzed period. Starting at 6.48% in April 2022, the net profit margin reached its peak at 6.79% in July 2022 before gradually declining to 2.77% in January 2025.

The decreasing trend in the net profit margin may indicate challenges faced by the company in managing its expenses relative to its revenues. A declining net profit margin can signal that the company may be experiencing difficulties in generating profits from its core operations or that its costs are increasing at a faster rate than its revenues.

It is essential for Dollar General Corporation to carefully monitor and address the factors contributing to the declining net profit margin to ensure sustainable profitability and long-term growth. This may involve strategies such as cost reduction initiatives, revenue growth efforts, and operational efficiency enhancements. Regularly assessing and adjusting business operations to improve profitability will be crucial for the company's financial health and success.