Dollar General Corporation (DG)
Pretax margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 1,439,754 | 1,713,993 | 1,960,577 | 1,829,930 | 1,707,444 | 1,812,884 | 1,918,324 | 2,224,959 | 2,531,594 | 2,781,973 | 3,032,352 | 3,055,981 | 3,079,610 | 3,091,582 | 3,103,554 | 3,128,586 | 3,153,618 | 3,041,453 | 2,929,288 | 2,849,197 |
| Revenue (ttm) | US$ in thousands | 40,612,320 | 40,089,220 | 39,764,330 | 39,165,720 | 38,945,780 | 38,876,220 | 38,813,890 | 38,544,930 | 38,193,680 | 38,609,940 | 39,016,660 | 39,138,720 | 39,207,100 | 38,504,710 | 37,684,430 | 36,970,890 | 36,271,360 | 35,497,100 | 34,727,420 | 34,493,910 |
| Pretax margin | 3.55% | 4.28% | 4.93% | 4.67% | 4.38% | 4.66% | 4.94% | 5.77% | 6.63% | 7.21% | 7.77% | 7.81% | 7.85% | 8.03% | 8.24% | 8.46% | 8.69% | 8.57% | 8.44% | 8.26% |
January 31, 2025 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $1,439,754K ÷ $40,612,320K
= 3.55%
The pretax margin of Dollar General Corporation has shown a declining trend over the past few years, indicating a decrease in profitability before accounting for taxes. The pretax margin was relatively stable around the 8% range in the fiscal year 2022, but started to decrease gradually from February 2023 onwards.
There was a significant drop in the pretax margin by July 2023, falling to 6.63%, and continued to decline to 3.55% by January 2025. This downward trajectory suggests that Dollar General's profitability has been negatively impacted, possibly due to various factors such as increasing costs, pricing pressures, or operating inefficiencies.
Investors and stakeholders may monitor this trend closely as a declining pretax margin could indicate potential challenges in the company's financial performance and overall competitiveness in the retail industry. Further analysis of the company's cost structure, revenue streams, and operational efficiency may be necessary to address and potentially reverse this trend.
Peer comparison
Jan 31, 2025