Dollar General Corporation (DG)

Pretax margin

		Feb 2, 2024	Nov 3, 2023	Aug 4, 2023	May 5, 2023	Feb 3, 2023	Oct 28, 2022	Jul 29, 2022	Apr 29, 2022	Jan 28, 2022	Oct 29, 2021	Jul 30, 2021	Apr 30, 2021	Jan 29, 2021	Oct 30, 2020	Jul 31, 2020	May 1, 2020	Jan 31, 2020	Nov 1, 2019	Aug 2, 2019	May 3, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	2,119,519	2,475,338	2,805,602	3,067,953	3,116,614	3,016,421	2,961,362	2,901,172	3,063,149	3,136,942	3,243,384	3,436,546	3,404,379	3,267,731	3,002,052	2,551,717	2,201,730	2,119,864	2,070,268	2,036,309
Revenue (ttm)	US$ in thousands	38,447,860	38,794,560	38,593,980	38,264,760	37,633,610	36,118,450	35,185,880	34,414,030	34,062,920	33,864,500	33,545,190	33,579,340	33,667,220	32,410,340	31,242,400	29,579,230	27,753,960	27,246,130	26,672,200	26,133,760
Pretax margin		5.51%	6.38%	7.27%	8.02%	8.28%	8.35%	8.42%	8.43%	8.99%	9.26%	9.67%	10.23%	10.11%	10.08%	9.61%	8.63%	7.93%	7.78%	7.76%	7.79%

February 2, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $2,119,519K ÷ $38,447,860K
= 5.51%

The pretax margin of Dollar General Corporation has shown fluctuations over the past few quarters. The latest data as of February 2, 2024, indicates a pretax margin of 5.51%, which is lower compared to the previous quarter's margin of 6.38% in November 3, 2023.

Looking back over the past year, the pretax margin has experienced a general downward trend from a high of 10.23% in April 30, 2021, to the current 5.51% as of February 2, 2024. This decline could be a cause for concern and may warrant further investigation into the company's cost management strategies and revenue generation capabilities.

It's essential for stakeholders to monitor the pretax margin closely as it reflects the company's ability to generate profits before accounting for taxes relative to its total revenue. Analyzing the reasons behind the fluctuations in the pretax margin can provide valuable insights into the company's financial performance and operational efficiency.