Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Dollar General Corp., profitability ratios
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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Dollar General Corp. gross profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Dollar General Corp. operating profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Dollar General Corp. net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Dollar General Corp. ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Dollar General Corp. ROA deteriorated from 2021 to 2022 and from 2022 to 2023. |
Gross Profit Margin
Dollar General Corp., gross profit margin 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) | |||||||
| Gross profit | 11,820,098) | 10,813,006) | 10,718,862) | 8,489,061) | 7,803,870) | 7,221,359) | |
| Net sales | 37,844,863) | 34,220,449) | 33,746,839) | 27,753,973) | 25,625,043) | 23,470,967) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 31.23% | 31.60% | 31.76% | 30.59% | 30.45% | 30.77% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Costco Wholesale Corp. | 10.57% | 10.48% | 11.13% | 11.20% | 11.02% | 11.04% | |
| Target Corp. | 23.57% | 28.34% | 28.38% | 28.87% | 28.39% | — | |
| Walmart Inc. | 23.46% | 24.44% | 24.30% | 24.10% | 24.50% | — | |
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 2023 Calculation
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 11,820,098 ÷ 37,844,863 = 31.23%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Dollar General Corp. gross profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Operating Profit Margin
Dollar General Corp., operating profit margin 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) | |||||||
| Operating profit | 3,328,302) | 3,220,675) | 3,554,765) | 2,302,304) | 2,116,306) | 2,007,818) | |
| Net sales | 37,844,863) | 34,220,449) | 33,746,839) | 27,753,973) | 25,625,043) | 23,470,967) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 8.79% | 9.41% | 10.53% | 8.30% | 8.26% | 8.55% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Costco Wholesale Corp. | 3.41% | 3.50% | 3.49% | 3.33% | 3.17% | 3.24% | |
| Target Corp. | 3.58% | 8.55% | 7.08% | 6.04% | 5.52% | — | |
| Walmart Inc. | 3.37% | 4.57% | 4.06% | 3.96% | 4.30% | — | |
| Operating Profit Margin, Sector | |||||||
| Consumer Staples Distribution & Retail | 3.41% | 4.77% | 4.26% | 4.03% | 4.20% | — | |
| Operating Profit Margin, Industry | |||||||
| Consumer Staples | 7.38% | 8.47% | 8.40% | 8.12% | 7.40% | — | |
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 2023 Calculation
Operating profit margin = 100 × Operating profit ÷ Net sales
= 100 × 3,328,302 ÷ 37,844,863 = 8.79%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Dollar General Corp. operating profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Net Profit Margin
Dollar General Corp., net profit margin 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 income | 2,415,989) | 2,399,232) | 2,655,050) | 1,712,555) | 1,589,472) | 1,538,960) | |
| Net sales | 37,844,863) | 34,220,449) | 33,746,839) | 27,753,973) | 25,625,043) | 23,470,967) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 6.38% | 7.01% | 7.87% | 6.17% | 6.20% | 6.56% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Costco Wholesale Corp. | 2.65% | 2.62% | 2.61% | 2.45% | 2.45% | 2.26% | |
| Target Corp. | 2.58% | 6.64% | 4.73% | 4.25% | 3.95% | — | |
| Walmart Inc. | 1.93% | 2.41% | 2.43% | 2.86% | 1.31% | — | |
| Net Profit Margin, Sector | |||||||
| Consumer Staples Distribution & Retail | 2.18% | 2.96% | 2.73% | 2.92% | 1.81% | — | |
| Net Profit Margin, Industry | |||||||
| Consumer Staples | 5.55% | 5.87% | 5.64% | 5.88% | 3.76% | — | |
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 2023 Calculation
Net profit margin = 100 × Net income ÷ Net sales
= 100 × 2,415,989 ÷ 37,844,863 = 6.38%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Dollar General Corp. net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Return on Equity (ROE)
Dollar General Corp., ROE 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 income | 2,415,989) | 2,399,232) | 2,655,050) | 1,712,555) | 1,589,472) | 1,538,960) | |
| Shareholders’ equity | 5,541,772) | 6,261,986) | 6,661,238) | 6,702,500) | 6,417,393) | 6,125,774) | |
| Profitability Ratio | |||||||
| ROE1 | 43.60% | 38.31% | 39.86% | 25.55% | 24.77% | 25.12% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Costco Wholesale Corp. | 25.11% | 28.31% | 28.51% | 21.89% | 24.00% | 24.49% | |
| Target Corp. | 24.75% | 54.15% | 30.25% | 27.73% | 26.00% | — | |
| Walmart Inc. | 15.23% | 16.42% | 16.69% | 19.93% | 9.20% | — | |
| ROE, Sector | |||||||
| Consumer Staples Distribution & Retail | 18.37% | 22.67% | 20.26% | 21.15% | 13.40% | — | |
| ROE, Industry | |||||||
| Consumer Staples | 29.82% | 29.95% | 27.27% | 27.08% | 16.85% | — | |
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 2023 Calculation
ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 2,415,989 ÷ 5,541,772 = 43.60%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Dollar General Corp. ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Return on Assets (ROA)
Dollar General Corp., ROA 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 income | 2,415,989) | 2,399,232) | 2,655,050) | 1,712,555) | 1,589,472) | 1,538,960) | |
| Total assets | 29,083,367) | 26,327,371) | 25,862,624) | 22,825,084) | 13,204,038) | 12,516,911) | |
| Profitability Ratio | |||||||
| ROA1 | 8.31% | 9.11% | 10.27% | 7.50% | 12.04% | 12.30% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Costco Wholesale Corp. | 9.12% | 9.11% | 8.45% | 7.20% | 8.06% | 7.68% | |
| Target Corp. | 5.21% | 12.91% | 8.52% | 7.67% | 7.11% | — | |
| Walmart Inc. | 4.80% | 5.58% | 5.35% | 6.29% | 3.04% | — | |
| ROA, Sector | |||||||
| Consumer Staples Distribution & Retail | 5.68% | 7.29% | 6.30% | 6.62% | 4.34% | — | |
| ROA, Industry | |||||||
| Consumer Staples | 8.59% | 8.81% | 7.91% | 7.73% | 5.14% | — | |
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 2023 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 2,415,989 ÷ 29,083,367 = 8.31%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Dollar General Corp. ROA deteriorated from 2021 to 2022 and from 2022 to 2023. |