Dollar General Corporation (DG)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 29.02% | 29.09% | 28.69% | 28.50% | 28.80% | 29.20% | 30.18% | 30.76% | 31.42% | 31.35% | 31.29% | 31.01% | 30.78% | 31.08% | 31.49% | 31.70% | 31.91% | 31.62% | 31.32% | 31.19% |
| Operating profit margin | 4.22% | 4.99% | 5.67% | 5.46% | 5.20% | 5.50% | 5.80% | 6.64% | 7.50% | 8.05% | 8.58% | 8.54% | 8.51% | 8.62% | 8.75% | 8.95% | 9.15% | 9.02% | 8.89% | 8.71% |
| 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% |
| Net profit margin | 2.77% | 3.33% | 3.88% | 3.68% | 3.48% | 3.66% | 3.84% | 4.48% | 5.15% | 5.59% | 6.02% | 6.03% | 6.05% | 6.21% | 6.39% | 6.59% | 6.79% | 6.71% | 6.62% | 6.48% |
Based on the provided data, I have analyzed the profitability ratios of Dollar General Corporation over the specified time periods.
1. Gross Profit Margin:
- Dollar General's gross profit margin has fluctuated over the years, ranging from a high of 31.91% in July 31, 2022, to a low of 28.50% in April 30, 2024. The average gross profit margin during this period was approximately 30.92%.
2. Operating Profit Margin:
- The company's operating profit margin has shown variability, with a peak of 9.15% in July 31, 2022, and a trough of 4.22% in January 31, 2025. On average, the operating profit margin was around 7.31%.
3. Pretax Margin:
- Dollar General's pretax margin has demonstrated fluctuations, with the highest value of 8.69% in July 31, 2022, and the lowest value of 3.55% in January 31, 2025. The average pretax margin over the specified period was approximately 6.82%.
4. Net Profit Margin:
- The net profit margin of Dollar General has experienced variability, reaching a peak of 6.79% in July 31, 2022, and a low of 2.77% in January 31, 2025. On average, the net profit margin stood at around 5.02%.
Overall, Dollar General Corporation's profitability ratios show fluctuations over the analyzed period, with the gross profit margin being the highest, followed by the operating profit margin, pretax margin, and net profit margin. It is essential for investors and stakeholders to closely monitor these ratios to assess the company's ability to generate profits and manage costs effectively.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 3.61% | 4.25% | 4.84% | 4.65% | 4.40% | 4.22% | 4.87% | 5.64% | 6.47% | 7.10% | 7.87% | 7.91% | 8.15% | 8.22% | 8.30% | 8.39% | 8.72% | 8.43% | 8.53% | 8.29% |
| Return on total capital | 18.75% | 22.82% | 31.06% | 30.55% | 30.02% | 31.69% | 34.90% | 39.66% | 45.51% | 49.34% | 56.41% | 56.31% | 60.21% | 59.85% | 54.11% | 27.39% | 53.63% | 30.56% | 51.76% | 30.33% |
| Return on equity (ROE) | 15.18% | 18.19% | 21.23% | 20.62% | 20.09% | 21.09% | 23.10% | 26.79% | 31.22% | 34.25% | 39.54% | 39.74% | 42.78% | 43.12% | 39.52% | 39.96% | 39.77% | 38.47% | 38.58% | 37.48% |
The profitability ratios of Dollar General Corporation have exhibited a downward trend over the analyzed period. The Operating return on assets (Operating ROA) decreased from 11.15% in April 29, 2022, to 5.51% in January 31, 2025. Similarly, the Return on assets (ROA) declined from 8.29% to 3.61% during the same period.
The Return on total capital decreased from 30.33% in April 29, 2022, to 18.75% in January 31, 2025, indicating a decline in the company's ability to generate returns relative to its total capital employed. Furthermore, the Return on equity (ROE) also showed a decreasing trend from 37.48% to 15.18% over the analyzed period, reflecting a decrease in the profitability for the company's shareholders.
Overall, the declining trend in profitability ratios suggests challenges in maintaining and increasing profitability for Dollar General Corporation. It is important for the company to assess its operational efficiency, capital utilization, and overall financial performance to address the downward trajectory of these key financial metrics.
See also:
Dollar General Corporation Profitability Ratios (Quarterly Data)