Dollar General Corporation (DG)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	1,661,274	1,918,596	2,168,517	2,377,712	2,415,989	2,354,287	2,315,151	2,274,140	2,399,232	2,444,542	2,531,771	2,682,353	2,655,050	2,547,744	2,339,034	1,977,988	1,712,555	1,660,359	1,628,951	1,609,633
Total assets	US$ in thousands	30,795,600	30,624,600	30,395,600	29,803,900	29,083,400	29,007,200	28,239,300	26,956,300	26,327,400	25,925,300	25,487,800	25,236,700	25,862,600	26,153,400	25,847,400	24,848,300	22,825,100	22,412,800	21,917,500	21,304,300
ROA		5.39%	6.26%	7.13%	7.98%	8.31%	8.12%	8.20%	8.44%	9.11%	9.43%	9.93%	10.63%	10.27%	9.74%	9.05%	7.96%	7.50%	7.41%	7.43%	7.56%

February 2, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $1,661,274K ÷ $30,795,600K
= 5.39%

The return on assets (ROA) of Dollar General Corporation has exhibited a generally positive trend over the past few years based on the data provided. The ROA, a key financial ratio that measures the company's efficiency in generating profits from its assets, increased from 7.56% in May 2019 to 8.31% in May 2023, indicating an improvement in the company's profitability relative to its asset base.

The ROA peaked at 10.63% in January 2021, suggesting that Dollar General was able to generate significant returns from its assets at that time. Despite some fluctuations, the ROA remained relatively strong, ranging from 7.41% to 10.63% during the period covered in the data.

The upward trend in the ROA signifies that Dollar General has been effectively managing its assets to generate higher profits over time. A higher ROA indicates that the company is utilizing its assets efficiently to generate earnings. However, it's essential to continue monitoring this ratio to ensure consistent profitability and efficient asset utilization in the future.