Stock Analysis on Net

Dollar General Corp. (NYSE:DG)

This company has been moved to the archive! The financial data has not been updated since August 29, 2024.

Common-Size Income Statement 

Dollar General Corp., common-size consolidated income statement

Microsoft Excel
12 months ended: Feb 2, 2024 Feb 3, 2023 Jan 28, 2022 Jan 29, 2021 Jan 31, 2020 Feb 1, 2019
Net sales 100.00 100.00 100.00 100.00 100.00 100.00
Cost of goods sold -69.71 -68.77 -68.40 -68.24 -69.41 -69.55
Gross profit 30.29% 31.23% 31.60% 31.76% 30.59% 30.45%
Selling, general and administrative expenses -23.97 -22.44 -22.19 -21.23 -22.29 -22.20
Operating profit 6.32% 8.79% 9.41% 10.53% 8.30% 8.26%
Interest expense -0.84 -0.56 -0.46 -0.45 -0.36 -0.39
Other expense 0.00 0.00 0.00 0.00 0.00 0.00
Income before income taxes 5.48% 8.24% 8.95% 10.09% 7.93% 7.87%
Income tax expense -1.18 -1.85 -1.94 -2.22 -1.76 -1.66
Net income 4.29% 6.38% 7.01% 7.87% 6.17% 6.20%

Based on: 10-K (reporting date: 2024-02-02), 10-K (reporting date: 2023-02-03), 10-K (reporting date: 2022-01-28), 10-K (reporting date: 2021-01-29), 10-K (reporting date: 2020-01-31), 10-K (reporting date: 2019-02-01).


Cost of Goods Sold
The proportion of cost of goods sold relative to net sales showed a generally stable trend with minor fluctuations. It decreased from -69.55% in fiscal 2019 to a low of -68.24% in 2021, indicating a slight improvement in cost efficiency during that period. However, it increased again afterward, reaching -69.71% by 2024, suggesting rising costs or pricing pressures in recent years.
Gross Profit
Gross profit as a percentage of net sales trended positively initially, rising from 30.45% in 2019 to a peak of 31.76% in 2021. This increase aligns with the lower cost of goods sold in that year. After 2021, gross profit margins declined steadily to 30.29% by 2024, reflecting the earlier noted rise in cost of goods sold.
Selling, General and Administrative Expenses (SG&A)
SG&A expenses expressed as a percentage of net sales displayed a gradually increasing trend over the six-year period. Starting at -22.20% in 2019, these expenses edged downward slightly in 2021 to -21.23% but rose sharply afterward, reaching -23.97% in 2024. This indicates increasing operating expenses, which could be exerting pressure on profitability.
Operating Profit
Operating profit margins improved significantly from 8.26% in 2019 to a high of 10.53% in 2021, coinciding with improvements in gross profit and reduced SG&A in that year. However, subsequent years saw a notable decline, falling to 6.32% in 2024. This contraction reflects the combined effects of increasing cost of goods sold and SG&A expenses.
Interest Expense
Interest expense relative to net sales displayed an upward trend, increasing from -0.39% in 2019 to -0.84% in 2024. The rise in interest costs could indicate increased borrowing or higher interest rates, which negatively impact net profitability.
Income Before Income Taxes
Income before income taxes followed a pattern similar to operating profit, peaking at 10.09% in 2021 before declining to 5.48% in 2024. This decline reflects the increased interest expense and operating costs noted in recent periods.
Income Tax Expense
The income tax expense as a percentage of net sales fluctuated moderately, generally trending downward from -1.76% in 2020 to -1.18% in 2024, possibly reflecting changes in tax rates, deferred tax assets or liabilities, or tax planning strategies.
Net Income
Net income margins mirrored the broader profitability trends. After rising from 6.20% in 2019 to a peak of 7.87% in 2021, net income margins declined steadily to 4.29% in 2024. This indicates that despite the earlier gains, overall profitability has weakened, primarily due to increased costs and expenses as well as higher interest charges.