Dollar General Corporation (DG)
Return on total capital
| Feb 2, 2024 | Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,446,300 | 3,327,890 | 3,220,680 | 3,554,760 | 2,302,300 |
| Long-term debt | US$ in thousands | — | — | 4,172,070 | — | 2,911,440 |
| Total stockholders’ equity | US$ in thousands | 6,749,120 | 5,541,770 | 6,261,990 | 6,661,240 | 6,702,500 |
| Return on total capital | 36.25% | 60.05% | 30.87% | 53.36% | 23.95% |
February 2, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,446,300K ÷ ($—K + $6,749,120K)
= 36.25%
The return on total capital for Dollar General Corporation has fluctuated over the past five years. In 2024, the return on total capital was 36.25%, representing a decrease from the previous year where it stood at 60.05%. This decline indicates that the company may not be utilizing its total capital as efficiently in generating profits compared to the prior period.
Comparing the 2024 return on total capital to that of 2020, which was 23.95%, we see an improvement in performance. This suggests that Dollar General has been able to enhance its profitability relative to the total capital employed over the four-year period.
However, it is worth noting that the 2024 return on total capital is still lower than the 2023 figure of 60.05%, indicating a potential performance slowdown during the period. Further analysis and investigation into the company's financial management and operational strategies may be required to understand the reasons behind this fluctuation in return on total capital.
Peer comparison
Feb 2, 2024