Dollar General Corporation (DG)
Return on assets (ROA)
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,661,270 | 2,415,990 | 2,399,230 | 2,655,050 | 1,712,560 |
| Total assets | US$ in thousands | 30,795,600 | 29,083,400 | 26,327,400 | 25,862,600 | 22,825,100 |
| ROA | 5.39% | 8.31% | 9.11% | 10.27% | 7.50% |
February 2, 2024 calculation
ROA = Net income ÷ Total assets
= $1,661,270K ÷ $30,795,600K
= 5.39%
Dollar General Corporation's return on assets (ROA) has experienced a declining trend over the past five years, as evidenced by the decreasing ROA figures from 10.27% in January 2021 to 5.39% in February 2024. This indicates that the company's ability to generate profits from its assets has weakened over the period.
The decreasing trend in ROA may suggest that Dollar General Corporation is becoming less effective in utilizing its assets to generate profits, which can be concerning for investors and stakeholders. It is important for the company to assess and improve its asset management strategies to enhance profitability and efficiency in the allocation of resources.
Peer comparison
Feb 2, 2024