Dollar General Corporation (DG)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	2,446,300	2,799,820	3,101,476	3,322,588	3,327,887	3,191,382	3,121,840	3,057,982	3,220,675	3,296,230	3,403,772	3,596,834	3,554,768	3,403,419	3,121,706	2,656,851	2,302,304	2,219,932	2,170,658	2,137,340
Long-term debt	US$ in thousands	—	—	—	—	—	5,985,730	4,290,700	3,947,460	4,172,070	—	—	—	—	—	—	3,967,220	2,911,440	—	—	—
Total stockholders’ equity	US$ in thousands	6,749,120	6,451,880	6,297,700	5,935,250	5,541,770	6,093,810	6,188,490	5,961,620	6,261,990	6,189,800	6,137,140	6,249,920	6,661,240	6,985,520	7,356,070	7,209,450	6,702,500	6,648,300	6,749,160	6,572,670
Return on total capital		36.25%	43.40%	49.25%	55.98%	60.05%	26.42%	29.79%	30.86%	30.87%	53.25%	55.46%	57.55%	53.36%	48.72%	42.44%	23.77%	23.95%	33.39%	32.16%	32.52%

February 2, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (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 displayed fluctuating trends over the past several quarters. There was a notable decrease in the return on total capital from May 1, 2020, to Jul 31, 2020, where it dropped to 23.77%. However, there was a subsequent increase in the return on total capital, with a significant improvement by Nov 3, 2023, reaching 43.40%. The return on total capital continued to show consistent growth until Feb 2, 2024, where it peaked at 36.25%.

Overall, Dollar General Corporation's return on total capital has demonstrated resilience and improvement within the analyzed period, with occasional fluctuations. The company's ability to generate returns from its total capital has shown positive momentum, indicating efficient utilization of resources and potentially promising financial performance. It is important to continue monitoring this metric to assess the company's ongoing financial health and performance.