Name: Dollar General Corp. (NYSE:DG) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Dollar General Corp., consolidated income statement

US$ in thousands

12 months ended:	Feb 2, 2024	Feb 3, 2023	Jan 28, 2022	Jan 29, 2021	Jan 31, 2020	Feb 1, 2019
Net sales	38,691,609)	37,844,863)	34,220,449)	33,746,839)	27,753,973)	25,625,043)
Cost of goods sold	(26,972,585)	(26,024,765)	(23,407,443)	(23,027,977)	(19,264,912)	(17,821,173)
Gross profit	11,719,024)	11,820,098)	10,813,006)	10,718,862)	8,489,061)	7,803,870)
Selling, general and administrative expenses	(9,272,724)	(8,491,796)	(7,592,331)	(7,164,097)	(6,186,757)	(5,687,564)
Operating profit	2,446,300)	3,328,302)	3,220,675)	3,554,765)	2,302,304)	2,116,306)
Interest expense	(326,781)	(211,273)	(157,526)	(150,385)	(100,574)	(99,871)
Other expense	—)	(415)	—)	—)	—)	(1,019)
Income before income taxes	2,119,519)	3,116,614)	3,063,149)	3,404,380)	2,201,730)	2,015,416)
Income tax expense	(458,245)	(700,625)	(663,917)	(749,330)	(489,175)	(425,944)
Net income	1,661,274)	2,415,989)	2,399,232)	2,655,050)	1,712,555)	1,589,472)

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).

Net sales demonstrated a consistent upward trajectory from February 1, 2019, through February 2, 2024, increasing from approximately $25.6 billion to $38.7 billion. While top-line growth remained positive throughout the period, profitability metrics exhibit a peak followed by a notable decline in recent years.

Revenue and Gross Profit Trends: Annual net sales experienced steady growth, with a significant acceleration occurring between 2020 and 2021. Gross profit rose from $7.8 billion in 2019 to a peak of $11.8 billion in 2023, before marginally declining to $11.7 billion in 2024. This pattern suggests that while the scale of operations expanded, the ability to grow gross profit slowed in the final fiscal year.
Operating Expense Analysis: Selling, general, and administrative (SG&A) expenses grew steadily from $5.7 billion in 2019 to $9.3 billion in 2024. In the latter part of the period, the growth of SG&A expenses accelerated, outpacing the growth of gross profit and exerting downward pressure on operating margins.
Operating and Net Income Volatility: Operating profit peaked in 2021 at $3.55 billion but declined to $2.45 billion by 2024. Net income followed a similar trajectory, reaching a maximum of $2.66 billion in 2021 before falling to $1.66 billion in 2024. This represents a significant decrease in bottom-line profitability despite the company generating substantially higher sales than it did in 2019.
Interest and Financing Costs: A sharp increase in interest expenses is observed, rising from approximately $100 million in 2019 to $327 million in 2024. This more than three-fold increase in financing costs has contributed to the erosion of income before taxes and reflects a higher cost of debt or increased leverage over the six-year period.

The overall financial trend indicates a transition from a period of high profitability growth, which peaked in 2021, to a period of margin compression. The combination of rising operating expenses and significantly higher interest costs has offset the gains achieved through revenue expansion, resulting in a net income level in 2024 that is closer to 2020 levels despite a much larger revenue base.

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