Dollar General Corporation (DG)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 31,132,700 | 31,460,400 | 31,813,800 | 31,009,500 | 30,795,600 | 33,742,100 | 30,624,600 | 30,624,600 | 30,395,600 | 30,395,600 | 29,803,900 | 29,803,900 | 29,083,400 | 29,083,400 | 29,007,200 | 29,007,200 | 28,239,300 | 28,239,300 | 26,956,300 | 26,956,300 |
| Operating ROA | 5.51% | 6.36% | 7.09% | 6.90% | 6.58% | 6.34% | 7.35% | 8.36% | 9.43% | 10.22% | 11.23% | 11.22% | 11.48% | 11.41% | 11.37% | 11.41% | 11.75% | 11.34% | 11.45% | 11.15% |
January 31, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,714,074K ÷ $31,132,700K
= 5.51%
Operating Return on Assets (Operating ROA) is a key financial ratio that indicates the ability of Dollar General Corporation to generate profits from its assets used in its core operations. Based on the provided data, the trend of Dollar General's Operating ROA fluctuates over the time period.
Initially, from April 29, 2022, to February 3, 2023, the Operating ROA remained relatively stable, fluctuating between 11.15% and 11.48%. This suggests that Dollar General efficiently utilized its assets to generate operating income during this period.
However, starting from July 31, 2023, there was a noticeable decline in the Operating ROA figures, dropping to as low as 5.51% by January 31, 2025. This downward trend indicates potential challenges in efficiently utilizing the company's assets to generate operating profits.
It is essential for Dollar General Corporation to closely monitor and address the decline in Operating ROA to improve operational efficiency and maximize profitability in the future. Factors influencing this decline should be investigated and strategies implemented to enhance asset utilization and return on investment.
Peer comparison
Jan 31, 2025