Dollar General Corporation (DG)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	6,749,120	5,541,770	6,261,990	6,661,240	6,702,500
ROE		24.61%	43.60%	38.31%	39.86%	25.55%

February 2, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,661,270K ÷ $6,749,120K
= 24.61%

The return on equity (ROE) for Dollar General Corporation has shown fluctuations over the past five years. In the fiscal year ending February 2, 2024, the ROE stood at 24.61%, a decrease from the previous year's figure of 43.60%. This significant decline indicates a decrease in the company's profitability in relation to its shareholders' equity.

Comparing the ROE for the fiscal years ending February 2, 2024, and January 31, 2020, there has been a notable increase from 25.55% to 24.61%. However, the ROE remains below the levels seen in the fiscal years ending February 3, 2023, and January 28, 2022, where it reached 43.60% and 38.31%, respectively.

Overall, the recent ROE of 24.61% suggests that Dollar General Corporation is generating a return of approximately 24.61% on every dollar of shareholders' equity, signaling a decent but slightly declining profitability performance compared to previous years. It is essential for the company to continue monitoring and improving its ROE to enhance shareholder value in the long term.