Dollar General Corporation (DG)

Return on assets (ROA)

		Jan 31, 2025	Feb 2, 2024	Jan 31, 2024	Feb 3, 2023	Jan 31, 2023
Net income	US$ in thousands	1,125,250	1,661,270	1,661,270	2,415,990	2,415,990
Total assets	US$ in thousands	31,132,700	30,795,600	30,795,600	29,083,400	29,083,400
ROA		3.61%	5.39%	5.39%	8.31%	8.31%

January 31, 2025 calculation

ROA = Net income ÷ Total assets
= $1,125,250K ÷ $31,132,700K
= 3.61%

The Return on Assets (ROA) for Dollar General Corporation has shown a declining trend over the past three years. As of January 31, 2023, and February 3, 2023, the ROA stood at 8.31%. However, this figure dropped to 5.39% as of January 31, 2024, and February 2, 2024. The most recent data indicates a further decrease to 3.61% as of January 31, 2025.

This diminishing trend in ROA suggests that Dollar General Corporation is becoming less efficient in generating profits from its assets. It may indicate challenges in managing its assets to yield optimal returns, which could be attributed to various factors such as increasing operating costs, declining revenue, or ineffective asset utilization strategies. Further analysis of the company's financial performance and operational efficiency would be necessary to determine the underlying reasons for this declining trend in ROA and to identify potential areas for improvement.