Dollar General Corporation (DG)

Operating profit margin

		Jan 31, 2025	Feb 2, 2024	Jan 31, 2024	Feb 3, 2023	Jan 31, 2023
Operating income	US$ in thousands	1,714,070	2,446,300	2,446,300	3,328,300	3,328,300
Revenue	US$ in thousands	40,612,300	38,364,800	38,691,600	37,633,600	37,844,900
Operating profit margin		4.22%	6.38%	6.32%	8.84%	8.79%

January 31, 2025 calculation

Operating profit margin = Operating income ÷ Revenue
= $1,714,070K ÷ $40,612,300K
= 4.22%

The operating profit margin of Dollar General Corporation has shown a declining trend over the past three fiscal years. As of January 31, 2023, the operating profit margin stood at 8.79%, which increased slightly to 8.84% by February 3, 2023. However, there was a noticeable decrease in the operating profit margin to 6.32% by January 31, 2024, followed by a further decrease to 6.38% by February 2, 2024. The trend continued with a significant drop to 4.22% as of January 31, 2025.

This decreasing trend in the operating profit margin indicates that Dollar General Corporation's ability to generate profit from its core operations has been eroding over the years. It is important for the company to closely monitor its operating expenses, pricing strategies, and overall operational efficiency to improve its profitability and enhance shareholder value in the future.