Stock Analysis on Net
Stock Analysis on Net

Dollar General Corp. (NYSE:DG)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Dollar General Corp., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Feb 2, 2024 24.61% = 5.39% × 4.56
Feb 3, 2023 43.60% = 8.31% × 5.25
Jan 28, 2022 38.31% = 9.11% × 4.20
Jan 29, 2021 39.86% = 10.27% × 3.88
Jan 31, 2020 25.55% = 7.50% × 3.41
Feb 1, 2019 24.77% = 12.04% × 2.06

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).

The primary reason for the decrease in return on equity ratio (ROE) over 2024 year is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Dollar General Corp., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Feb 2, 2024 24.61% = 4.29% × 1.26 × 4.56
Feb 3, 2023 43.60% = 6.38% × 1.30 × 5.25
Jan 28, 2022 38.31% = 7.01% × 1.30 × 4.20
Jan 29, 2021 39.86% = 7.87% × 1.30 × 3.88
Jan 31, 2020 25.55% = 6.17% × 1.22 × 3.41
Feb 1, 2019 24.77% = 6.20% × 1.94 × 2.06

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).

The primary reason for the decrease in return on equity ratio (ROE) over 2024 year is the decrease in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

Dollar General Corp., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Feb 2, 2024 24.61% = 0.78 × 0.87 × 6.32% × 1.26 × 4.56
Feb 3, 2023 43.60% = 0.78 × 0.94 × 8.79% × 1.30 × 5.25
Jan 28, 2022 38.31% = 0.78 × 0.95 × 9.41% × 1.30 × 4.20
Jan 29, 2021 39.86% = 0.78 × 0.96 × 10.53% × 1.30 × 3.88
Jan 31, 2020 25.55% = 0.78 × 0.96 × 8.30% × 1.22 × 3.41
Feb 1, 2019 24.77% = 0.79 × 0.95 × 8.25% × 1.94 × 2.06

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).

The primary reason for the decrease in return on equity ratio (ROE) over 2024 year is the decrease in operating profitability measured by EBIT margin ratio.

Two-Component Disaggregation of ROA

Dollar General Corp., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Feb 2, 2024 5.39% = 4.29% × 1.26
Feb 3, 2023 8.31% = 6.38% × 1.30
Jan 28, 2022 9.11% = 7.01% × 1.30
Jan 29, 2021 10.27% = 7.87% × 1.30
Jan 31, 2020 7.50% = 6.17% × 1.22
Feb 1, 2019 12.04% = 6.20% × 1.94

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).

The primary reason for the decrease in return on assets ratio (ROA) over 2024 year is the decrease in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Dollar General Corp., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Feb 2, 2024 5.39% = 0.78 × 0.87 × 6.32% × 1.26
Feb 3, 2023 8.31% = 0.78 × 0.94 × 8.79% × 1.30
Jan 28, 2022 9.11% = 0.78 × 0.95 × 9.41% × 1.30
Jan 29, 2021 10.27% = 0.78 × 0.96 × 10.53% × 1.30
Jan 31, 2020 7.50% = 0.78 × 0.96 × 8.30% × 1.22
Feb 1, 2019 12.04% = 0.79 × 0.95 × 8.25% × 1.94

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).

The primary reason for the decrease in return on assets ratio (ROA) over 2024 year is the decrease in operating profitability measured by EBIT margin ratio.

Disaggregation of Net Profit Margin

Dollar General Corp., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Feb 2, 2024 4.29% = 0.78 × 0.87 × 6.32%
Feb 3, 2023 6.38% = 0.78 × 0.94 × 8.79%
Jan 28, 2022 7.01% = 0.78 × 0.95 × 9.41%
Jan 29, 2021 7.87% = 0.78 × 0.96 × 10.53%
Jan 31, 2020 6.17% = 0.78 × 0.96 × 8.30%
Feb 1, 2019 6.20% = 0.79 × 0.95 × 8.25%

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).

The primary reason for the decrease in net profit margin ratio over 2024 year is the decrease in operating profitability measured by EBIT margin ratio.