Dollar General Corporation (DG)

Pretax margin

Jan 31, 2025 Feb 2, 2024 Jan 31, 2024 Feb 3, 2023 Jan 31, 2023
Earnings before tax but after interest (EBT) US$ in thousands 1,439,750 2,119,520 2,119,520 3,116,610 3,116,610
Revenue US$ in thousands 40,612,300 38,364,800 38,691,600 37,633,600 37,844,900
Pretax margin 3.55% 5.52% 5.48% 8.28% 8.24%

January 31, 2025 calculation

Pretax margin = EBT ÷ Revenue
= $1,439,750K ÷ $40,612,300K
= 3.55%

The pretax margin of Dollar General Corporation has shown a decreasing trend over the last three years. As of January 31, 2023, the pretax margin was 8.24%, which slightly increased to 8.28% by February 3, 2023. However, there was a noticeable decline in the pretax margin to 5.48% by January 31, 2024, and a further decrease to 5.52% by February 2, 2024. The most recent data point as of January 31, 2025, indicates a pretax margin of 3.55%. This downward trend in pretax margin may suggest challenges in managing operating expenses or generating sufficient revenue to cover costs before taxes. Further analysis is recommended to understand the underlying factors contributing to this trend and to evaluate the company's overall financial performance.