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Dollar General Gross Margin %

: 31.32% (As of Oct. 2020)
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Gross Margin % is calculated as gross profit divided by its revenue. Dollar General's Gross Profit for the three months ended in Oct. 2020 was $2,568 Mil. Dollar General's Revenue for the three months ended in Oct. 2020 was $8,200 Mil. Therefore, Dollar General's Gross Margin % for the quarter that ended in Oct. 2020 was 31.32%.


NYSE:DG' s Gross Margin % Range Over the Past 10 Years
Min: 30.45   Med: 30.91   Max: 32.04
Current: 31.56
30.45
32.04

During the past 13 years, the highest Gross Margin % of Dollar General was 32.04%. The lowest was 30.45%. And the median was 30.91%.

NYSE:DG's Gross Margin % is ranked higher than
75% of the 288 Companies
in the Retail - Defensive industry.

( Industry Median: 23.94 vs. NYSE:DG: 31.56 )

Dollar General had a gross margin of 31.32% for the quarter that ended in Oct. 2020 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Dollar General was -0.20% per year.

Dollar General Gross Margin % 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
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 30.96 30.85 30.77 30.45 30.59

Dollar General Quarterly Data
Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20
Gross Margin % 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 29.54 31.75 30.72 32.45 31.32
Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.

Dollar General Gross Margin % Distribution

* The bar in red indicates where Dollar General's Gross Margin % falls into.


Dollar General Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Dollar General's Gross Margin for the fiscal year that ended in Jan. 2020 is calculated as

Gross Margin % (A: Jan. 2020 )=Gross Profit (A: Jan. 2020 ) / Revenue (A: Jan. 2020 )
=8489.1 / 27753.973
=(Revenue - Cost of Goods Sold) / Revenue
=(27753.973 - 19264.912) / 27753.973
=30.59 %

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


Gross Margin % (Q: Oct. 2020 )=Gross Profit (Q: Oct. 2020 ) / Revenue (Q: Oct. 2020 )
=2568.2 / 8199.625
=(Revenue - Cost of Goods Sold) / Revenue
=(8199.625 - 5631.385) / 8199.625
=31.32 %

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

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Dollar General  (NYSE:DG) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Dollar General had a gross margin of 31.32% for the quarter that ended in Oct. 2020 => Competition eroding margins

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Dollar General Gross Margin % Related Terms

Dollar General Gross Margin % Headlines

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