Dollar General Corporation (DG)

Return on equity (ROE)

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Feb 2, 2024	Jan 31, 2024	Nov 3, 2023	Oct 31, 2023	Aug 4, 2023	Jul 31, 2023	May 5, 2023	Apr 30, 2023	Feb 3, 2023	Jan 31, 2023	Oct 31, 2022	Oct 28, 2022	Jul 31, 2022	Jul 29, 2022	Apr 30, 2022	Apr 29, 2022
Net income (ttm)	US$ in thousands	1,125,253	1,335,849	1,541,133	1,443,189	1,356,118	1,423,140	1,490,162	1,728,296	1,966,430	2,156,730	2,347,030	2,358,817	2,370,604	2,389,499	2,408,394	2,434,884	2,461,374	2,380,777	2,300,180	2,234,554
Total stockholders’ equity	US$ in thousands	7,413,710	7,342,580	7,260,240	7,000,180	6,749,120	6,749,120	6,451,880	6,451,880	6,297,700	6,297,700	5,935,250	5,935,250	5,541,770	5,541,770	6,093,810	6,093,810	6,188,490	6,188,490	5,961,620	5,961,620
ROE		15.18%	18.19%	21.23%	20.62%	20.09%	21.09%	23.10%	26.79%	31.22%	34.25%	39.54%	39.74%	42.78%	43.12%	39.52%	39.96%	39.77%	38.47%	38.58%	37.48%

January 31, 2025 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,125,253K ÷ $7,413,710K
= 15.18%

The return on equity (ROE) of Dollar General Corporation has shown fluctuations over the period under review. Starting at a strong level of 37.48% in April 2022, the ROE increased gradually, reaching its peak at 43.12% in January 2023. Subsequently, the ROE started declining, dropping to 15.18% by January 2025.

The decreasing trend in ROE from early 2023 to 2025 may indicate challenges in generating profits relative to shareholders' equity. This could be due to various factors, such as increased expenses, declining revenue growth, or changes in the capital structure.

Investors and analysts may consider these fluctuations in ROE when assessing the profitability and efficiency of Dollar General Corporation's operations and the company's ability to generate returns for its shareholders. Further analysis, including assessing the company's financial performance and strategies, would provide a more comprehensive understanding of the factors influencing the ROE dynamics.