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Dollar General Operating Income

: $3,403 Mil (TTM As of Oct. 2020)
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Dollar General's Operating Income for the three months ended in Oct. 2020 was $773 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Oct. 2020 was $3,403 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Dollar General's Operating Income for the three months ended in Oct. 2020 was $773 Mil. Dollar General's Revenue for the three months ended in Oct. 2020 was $8,200 Mil. Therefore, Dollar General's Operating Margin % for the quarter that ended in Oct. 2020 was 9.43%.

Warning Sign:

Dollar General Corp operating margin has been in 5-year decline. The average rate of decline per year is -3.2%.

Dollar General's 5-Year average Growth Rate for Operating Margin % was -3.20% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Dollar General's annualized ROC % for the quarter that ended in Oct. 2020 was 12.45%. Dollar General's annualized ROC (Joel Greenblatt) % for the quarter that ended in Oct. 2020 was 23.51%.


Dollar General Operating Income Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Dollar General Annual Data
Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20
Operating Income Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1,940.29 2,063.45 2,007.82 2,116.31 2,302.30

Dollar General Quarterly Data
Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20
Operating Income Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 491.42 720.88 866.78 1,042.63 773.13

Dollar General Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Oct. 2020 was 720.875 (Jan. 2020 ) + 866.784 (Apr. 2020 ) + 1042.627 (Jul. 2020 ) + 773.13 (Oct. 2020 ) = $3,403 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Dollar General  (NYSE:DG) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Dollar General's annualized ROC % for the quarter that ended in Oct. 2020 is calculated as:

ROC % (Q: Oct. 2020 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jul. 2020 ) + Invested Capital (Q: Oct. 2020 ))/ count )
=3092.52 * ( 1 - 21.64% )/( (19265.758 + 19664.378)/ 2 )
=2423.298672/19465.068
=12.45 %

where

Invested Capital(Q: Jul. 2020 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=25847.433 - 4395.455 - ( 2959.604 - max(0, 5411.188 - 7597.408+2959.604))
=19265.758

Invested Capital(Q: Oct. 2020 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=26153.442 - 4841.843 - ( 2199.443 - max(0, 5886.211 - 7533.432+2199.443))
=19664.378

Note: The Operating Income data used here is four times the quarterly (Oct. 2020) data.

2. Joel Greenblatt's definition of Return on Capital:

Dollar General's annualized ROC (Joel Greenblatt) % for the quarter that ended in Oct. 2020 is calculated as:

ROC (Joel Greenblatt) %(Q: Oct. 2020 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jul. 2020  Q: Oct. 2020
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=3092.52/( ( (12675.787 + max(206.173, 0)) + (13045.157 + max(381.007, 0)) )/ 2 )
=3092.52/( ( 12881.96 + 13426.164 )/ 2 )
=3092.52/13154.062
=23.51 %

where Working Capital is:

Working Capital(Q: Jul. 2020 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 4391.157 + 210.471) - (4395.455 + 0 + 0)
=206.173

Working Capital(Q: Oct. 2020 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(0 + 5025.81 + 197.04) - (4841.843 + 0 + 9.0949470177293E-13)
=381.007

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Oct. 2020) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Dollar General's Operating Margin % for the quarter that ended in Oct. 2020 is calculated as:

Operating Margin %=Operating Income (Q: Oct. 2020 )/Revenue (Q: Oct. 2020 )
=773.13/8199.625
=9.43 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Dollar General Operating Income Related Terms


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