Dollar General Corporation (DG)

Pretax margin

		Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	2,119,520	3,116,610	3,063,150	3,404,380	2,201,730
Revenue	US$ in thousands	38,364,800	37,633,600	34,062,900	33,596,500	27,653,400
Pretax margin		5.52%	8.28%	8.99%	10.13%	7.96%

February 2, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $2,119,520K ÷ $38,364,800K
= 5.52%

The pretax margin of Dollar General Corporation has shown a declining trend over the past five years. The pretax margin was 5.52% as of February 2, 2024, down from 8.28% in the previous year and significantly lower than the peak of 10.13% in January 29, 2021. This decreasing trend indicates that Dollar General's ability to generate profits before taxes has been decreasing over the years. Further analysis and investigation into the factors contributing to this decline would be necessary to understand the reasons behind the declining pretax margin and to identify potential areas for improvement.