Dollar General Corporation (DG)
Operating return on assets (Operating ROA)
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,446,300 | 3,328,300 | 3,220,680 | 3,554,760 | 2,302,300 |
| Total assets | US$ in thousands | 30,795,600 | 29,083,400 | 26,327,400 | 25,862,600 | 22,825,100 |
| Operating ROA | 7.94% | 11.44% | 12.23% | 13.74% | 10.09% |
February 2, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $2,446,300K ÷ $30,795,600K
= 7.94%
Operating return on assets (operating ROA) measures Dollar General Corporation's ability to generate operating profits from its assets.
The trend analysis of Dollar General's operating ROA reveals a declining pattern over the past five years. In fiscal year 2020, the operating ROA stood at 10.09%, marking an upward trend from the previous year. However, this trend reversed in the subsequent years, with the operating ROA dropping to 13.74% in 2021, 12.23% in 2022, 11.44% in 2023, and eventually reaching 7.94% in 2024.
This declining trend suggests that Dollar General may be facing challenges in efficiently utilizing its assets to generate operating profits. Factors such as increasing operating expenses, lower revenue growth, or inefficient asset management could be contributing to this trend.
It is essential for Dollar General Corporation to closely monitor and address the factors impacting its operating ROA to improve operational efficiency and profitability in the future.
Peer comparison
Feb 2, 2024