Dollar General Corporation (DG)

Operating 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
Operating income (ttm)	US$ in thousands	1,714,074	1,999,522	2,255,374	2,138,886	2,026,256	2,138,916	2,251,576	2,558,960	2,866,344	3,107,204	3,348,064	3,342,751	3,337,438	3,317,690	3,297,942	3,308,554	3,319,166	3,202,409	3,085,652	3,005,083
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
Operating profit margin		4.22%	4.99%	5.67%	5.46%	5.20%	5.50%	5.80%	6.64%	7.50%	8.05%	8.58%	8.54%	8.51%	8.62%	8.75%	8.95%	9.15%	9.02%	8.89%	8.71%

January 31, 2025 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $1,714,074K ÷ $40,612,320K
= 4.22%

The operating profit margin of Dollar General Corporation has shown some fluctuations over the past few years based on the provided data. The trend indicates a gradual decline in the operating profit margin from around 8.71% in April 2022 to 4.22% in January 2025.

Initially, in the earlier periods, the operating profit margin hovered around the 8-9% range, showing stability and consistency. However, from August 2023 onwards, there has been a noticeable downward trend in the operating profit margin, indicating a decrease in profitability relative to revenue.

The decline in the operating profit margin could be attributed to various factors such as increased operating expenses, lower revenue growth, or inefficiencies in cost management. This trend may raise concerns about the company's ability to maintain profitability in the long run.

It is essential for Dollar General Corporation to closely monitor and address the factors affecting its operating profit margin to ensure sustainable profitability and financial health in the future. Further analysis of the company's financial performance and strategic decisions may be required to understand the underlying reasons for the decline in the operating profit margin.