Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Dollar General's annualized net income for the quarter that ended in Oct. 2024 was $786 Mil. Dollar General's average shareholder tangible equity for the quarter that ended in Oct. 2024 was $1,763 Mil. Therefore, Dollar General's annualized Return-on-Tangible-Equity for the quarter that ended in Oct. 2024 was 44.59%.
The historical rank and industry rank for Dollar General's Return-on-Tangible-Equity or its related term are showing as below:
DG'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 93.91 Med: 273.62 Max: 29600.61
Current: 93.91
During the past 13 years, Dollar General's highest Return-on-Tangible-Equity was 29,600.61%. The lowest was 93.91%. And the median was 273.62%.
DG's Return-on-Tangible-Equity is ranked better than 89.44% of 303
companies
in the Retail - Defensive industry
Industry Median: 12.96
vs DG: 93.91
Dollar General Return-on-Tangible-Equity Historical Data
The historical data trend for Dollar General's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Dollar General's Return-on-Tangible-Equity
For the Discount Stores subindustry, Dollar General's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* 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. Note that "N/A" values will not show up in the chart.
Dollar General's Return-on-Tangible-Equity Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Dollar General's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Dollar General's Return-on-Tangible-Equity falls into.
Dollar General Return-on-Tangible-Equity Calculation
Dollar General's annualized Return-on-Tangible-Equity for the fiscal year that ended in Jan. 2024 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Oct. 2024) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
Dollar General (NYSE:DG) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Dollar General Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of Dollar General's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.
With more than 20,000 locations, Dollar General's banner is nearly ubiquitous across the rural United States. Dollar General serves as a convenient shopping destination for fill-in store trips, with its value proposition most relevant to consumers in small communities with a dearth of shopping options. The retailer operates a frugal store of about 7,500 square feet and primarily offers an assortment of branded and private-label consumable items (80% of net sales) such as paper and cleaning products, packaged and perishable food, tobacco, and health and beauty items at low prices. Dollar General also offers a limited assortment of seasonal merchandise, home products, and apparel. The firm sells most items at a price point of $10 or less.
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