Return on Capital (ROC)
Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.
Return on Invested Capital (ROIC)
Dollar General Corp., ROIC calculation, comparison to benchmarks
| Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | Feb 1, 2019 | Feb 2, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net operating profit after taxes (NOPAT)1 | 3,664,406) | 3,112,907) | 3,105,494) | 2,145,885) | 1,981,150) | 1,623,118) | |
| Invested capital2 | 24,763,719) | 21,499,995) | 20,896,699) | 19,125,860) | 18,107,408) | 17,430,340) | |
| Performance Ratio | |||||||
| ROIC3 | 14.80% | 14.48% | 14.86% | 11.22% | 10.94% | 9.31% | |
| Benchmarks | |||||||
| ROIC, Competitors4 | |||||||
| Costco Wholesale Corp. | 16.31% | 20.27% | 18.56% | 14.65% | 16.61% | 16.15% | |
| Target Corp. | 12.64% | 26.11% | 16.47% | 14.30% | 14.14% | — | |
| Walmart Inc. | 9.28% | 9.80% | 11.03% | 10.88% | 5.72% | — | |
Based on: 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), 10-K (reporting date: 2018-02-02).
1 NOPAT. See details »
2 Invested capital. See details »
3 2023 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 3,664,406 ÷ 24,763,719 = 14.80%
4 Click competitor name to see calculations.
| Performance ratio | Description | The company |
|---|---|---|
| ROIC | A measure of the periodic, after tax, cash-on-cash yield earned in the business. | Dollar General Corp. ROIC deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Decomposition of ROIC
Dollar General Corp., decomposition of ROIC
Based on: 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), 10-K (reporting date: 2018-02-02).
1 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
The primary reason for the increase in return on invested capital (ROIC) over 2023 year is the decrease in effective cash tax rate (CTR).
Operating Profit Margin (OPM)
Dollar General Corp., OPM calculation, comparison to benchmarks
| Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | Feb 1, 2019 | Feb 2, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net operating profit after taxes (NOPAT)1 | 3,664,406) | 3,112,907) | 3,105,494) | 2,145,885) | 1,981,150) | 1,623,118) | |
| Add: Cash operating taxes2 | 596,198) | 660,916) | 823,390) | 532,368) | 457,118) | 619,952) | |
| Net operating profit before taxes (NOPBT) | 4,260,603) | 3,773,823) | 3,928,884) | 2,678,252) | 2,438,268) | 2,243,070) | |
| Net sales | 37,844,863) | 34,220,449) | 33,746,839) | 27,753,973) | 25,625,043) | 23,470,967) | |
| Profitability Ratio | |||||||
| OPM3 | 11.26% | 11.03% | 11.64% | 9.65% | 9.52% | 9.56% | |
| Benchmarks | |||||||
| OPM, Competitors4 | |||||||
| Costco Wholesale Corp. | 3.28% | 3.79% | 3.58% | 3.37% | 3.30% | 3.41% | |
| Target Corp. | 3.72% | 9.00% | 7.15% | 6.17% | 5.67% | — | |
| Walmart Inc. | 3.26% | 3.77% | 4.26% | 4.52% | 2.84% | — | |
Based on: 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), 10-K (reporting date: 2018-02-02).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2023 Calculation
OPM = 100 × NOPBT ÷ Net sales
= 100 × 4,260,603 ÷ 37,844,863 = 11.26%
4 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| OPM | The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. | Dollar General Corp. OPM deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Turnover of Capital (TO)
Dollar General Corp., TO calculation, comparison to benchmarks
| Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | Feb 1, 2019 | Feb 2, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net sales | 37,844,863) | 34,220,449) | 33,746,839) | 27,753,973) | 25,625,043) | 23,470,967) | |
| Invested capital1 | 24,763,719) | 21,499,995) | 20,896,699) | 19,125,860) | 18,107,408) | 17,430,340) | |
| Efficiency Ratio | |||||||
| TO2 | 1.53 | 1.59 | 1.61 | 1.45 | 1.42 | 1.35 | |
| Benchmarks | |||||||
| TO, Competitors3 | |||||||
| Costco Wholesale Corp. | 6.81 | 7.03 | 6.74 | 5.62 | 6.23 | 6.67 | |
| Target Corp. | 3.56 | 3.47 | 3.03 | 2.83 | 2.86 | — | |
| Walmart Inc. | 4.05 | 3.63 | 3.38 | 3.11 | 3.21 | — | |
Based on: 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), 10-K (reporting date: 2018-02-02).
1 Invested capital. See details »
2 2023 Calculation
TO = Net sales ÷ Invested capital
= 37,844,863 ÷ 24,763,719 = 1.53
3 Click competitor name to see calculations.
| Efficiency ratio | Description | The company |
|---|---|---|
| TO | The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. | Dollar General Corp. TO deteriorated from 2021 to 2022 and from 2022 to 2023. |
Effective Cash Tax Rate (CTR)
Dollar General Corp., CTR calculation, comparison to benchmarks
| Feb 3, 2023 | Jan 28, 2022 | Jan 29, 2021 | Jan 31, 2020 | Feb 1, 2019 | Feb 2, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net operating profit after taxes (NOPAT)1 | 3,664,406) | 3,112,907) | 3,105,494) | 2,145,885) | 1,981,150) | 1,623,118) | |
| Add: Cash operating taxes2 | 596,198) | 660,916) | 823,390) | 532,368) | 457,118) | 619,952) | |
| Net operating profit before taxes (NOPBT) | 4,260,603) | 3,773,823) | 3,928,884) | 2,678,252) | 2,438,268) | 2,243,070) | |
| Tax Rate | |||||||
| CTR3 | 13.99% | 17.51% | 20.96% | 19.88% | 18.75% | 27.64% | |
| Benchmarks | |||||||
| CTR, Competitors4 | |||||||
| Costco Wholesale Corp. | 27.04% | 23.89% | 23.00% | 22.65% | 19.18% | 28.98% | |
| Target Corp. | 4.45% | 16.42% | 23.99% | 18.12% | 12.76% | — | |
| Walmart Inc. | 29.71% | 28.43% | 23.29% | 22.54% | 37.20% | — | |
Based on: 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), 10-K (reporting date: 2018-02-02).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2023 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 596,198 ÷ 4,260,603 = 13.99%
4 Click competitor name to see calculations.
| Tax rate | Description | The company |
|---|---|---|
| CTR | Effective cash tax rate on operating income. | Dollar General Corp. CTR decreased from 2021 to 2022 and from 2022 to 2023. |