Dollar General Corporation (DG)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 31,132,700 | 30,795,600 | 30,795,600 | 29,083,400 | 29,083,400 |
| Operating ROA | 5.51% | 7.94% | 7.94% | 11.44% | 11.44% |
January 31, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $1,714,070K ÷ $31,132,700K
= 5.51%
Operating Return on Assets (Operating ROA) is a key financial metric that measures a company's efficiency in generating profits from its assets used in operations. In the case of Dollar General Corporation, the Operating ROA has shown a declining trend over the specified periods.
As of January 31, 2023, and February 3, 2023, Dollar General Corporation had an Operating ROA of 11.44%, indicating that the company generated $0.1144 in operating income for every $1 of assets. This level of performance remained consistent in the subsequent period.
However, for the period ending January 31, 2024, and February 2, 2024, the Operating ROA decreased to 7.94%, suggesting a decline in operational efficiency and profitability relative to the size of the assets employed.
The most recent reported figure as of January 31, 2025, shows a further decrease in Operating ROA to 5.51%. This decline indicates that Dollar General Corporation is generating lower profits from its assets in comparison to the earlier periods.
Overall, the decreasing trend in Dollar General Corporation's Operating ROA could signal challenges in effectively utilizing its assets to generate operating income. Further analysis of the company's operational efficiency and asset management practices may be warranted to address the decline in profitability relative to asset utilization.
Peer comparison
Jan 31, 2025