Dollar General Corporation (DG)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	7,413,710	6,749,120	6,749,120	5,541,770	5,541,770
ROE		15.18%	24.61%	24.61%	43.60%	43.60%

January 31, 2025 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,125,250K ÷ $7,413,710K
= 15.18%

Based on the data provided for Dollar General Corporation's Return on Equity (ROE) over the past few years, we observe a declining trend.

As of January 31, 2023, the ROE was at a healthy 43.60%, indicating that the company was efficiently generating profits from shareholders' equity. This level of ROE suggests effective management of assets and utilization of equity financing.

The ROE remained stable at 43.60% through February 3, 2023, indicating consistent profitability and efficiency in utilizing shareholders' equity.

However, there was a notable decrease in ROE to 24.61% as of January 31, 2024, suggesting a decrease in profitability relative to the shareholders' equity. This decline may be a result of various factors such as increasing expenses, lower revenue growth, or changes in the capital structure.

The trend continued with ROE remaining at 24.61% as of February 2, 2024, indicating a sustained level of profitability relative to equity, albeit at a lower level compared to the previous period.

The most recent data point, showing an ROE of 15.18% as of January 31, 2025, reflects a further decline in profitability relative to shareholders' equity. This decrease may raise concerns about the company's ability to efficiently utilize its equity to generate profits.

In summary, Dollar General Corporation has experienced a decline in Return on Equity over the years, which could indicate challenges in maintaining or improving profitability with the available shareholders' equity. Further analysis would be needed to understand the specific factors driving this trend and the potential implications for the company's financial performance and strategic decisions.