Dollar General net worth is an important metric to understand the company’s standing in the retail industry. Today, let’s dive into their financial performance and explore the key contributors to their revenue growth.
At Ando Money, we provide up-to-date and insightful financial analyses for curious readers. Let’s explore Dollar General’s financials in detail.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Dollar General |
| Full Name | Dollar General Corporation |
| Website | dollargeneral.com |
| Industry | Discount Retailer |
| Traded As | NYSE: DG |
| ISIN | N/A |
| Founded | 1939 (as J.L. Turner and Son) |
| Founders | James Luther Turner, Cal Turner |
| Country/Territory | United States |
| Headquarters | Goodlettsville, Tennessee, U.S. |
| Chief Executive Officer | Todd Vasos |
| Number of Employees | 170,000 (2023) |
| Market Cap | $18.01 billion (October 2024) |
| Total Assets | $31.814 billion (August 2, 2024) |
| Total Equity | $7.260 billion (August 2, 2024) |
| Revenue | $37.885 billion (FY ended February 3, 2023) |
| Net Income | $2.416 billion (FY ended February 3, 2023) |
What is the Net Worth/Market Cap of Dollar General in 2024?
As of October 2024, Dollar General has a market cap of $18.01 billion, making it one of the significant players in the retail sector.
Comparatively, Dollar General might not be the richest company, but it remains a powerhouse within its industry, driven by strong growth fundamentals and strategic expansion.
This market cap helps place Dollar General within a competitive landscape that includes other prominent brands. Below are some companies related to Dollar General:
- Dollar Tree
- Family Dollar
- Walmart
- Target
- Costco
- Amazon
- Kroger
- Big Lots
- KKR
- Goldman Sachs
For more detailed information on the wealthiest companies, you can visit our curated list of the most financially successful corporations.
Dollar General Financial Performance Overview
Financial Health and Revenue Performance
Dollar General‘s financial health in recent years has been stable, marked by an upward trend in revenues and expansion strategies. In the fiscal year ending February 3, 2023, the company reported $37.885 billion in revenue, showcasing a well-executed business model.
Dollar General has achieved this by maintaining a balance between consumables, seasonal items, and other product categories, ensuring diversified sources of income.
The company’s net income for the fiscal year ended February 3, 2023, stood at $2.416 billion, reflecting effective cost management despite increasing operational expenses.
This income has allowed Dollar General to enhance its market reach and focus on strategic growth.
Core Contributors to Revenue Growth
A major revenue driver for Dollar General has been its store expansions and remodels. During 2024, the company opened 213 new stores and remodeled 478 stores, contributing significantly to its growing footprint.
The addition of new locations is pivotal, especially in under-served rural markets where Dollar General fills a crucial gap.
Another strong contributor is consumables, which include essential household items and groceries.
These products have seen consistent demand, driving revenue growth by 6.0% over the previous year, while other categories like apparel and home products saw a slight decline.
Maintaining a mix of consumables and non-consumables helps diversify revenue streams and mitigates risks.
Breakdown of Key Financial Metrics
The total assets of Dollar General, recorded at $31.814 billion as of August 2, 2024, indicate strong financial backing and liquidity.
Their total equity of $7.260 billion further demonstrates a healthy financial standing, ensuring investors’ confidence.
Key financial metrics such as operating profit, which stood at $550 million in Q2 2024, highlight the company’s focus on managing its profit margins effectively, despite a decrease compared to 2023.
Major Investments and Their Financial Impact
Dollar General’s investments are a reflection of their growth strategy. Capital expenditures amounted to $696 million for the first half of 2024.
These were primarily used for improving store facilities, expansions, and upgrading distribution networks.
Investments in distribution and transportation, such as the $199 million allocation, have also helped streamline supply chain efficiency, positively impacting the bottom line by minimizing logistic disruptions.
Cost Structure and Profit Margins
The profit margin for Dollar General has seen fluctuations, with the gross profit rate being 30.0% for Q2 2024, a decline compared to 31.1% from the previous year.
Factors like increased markdowns and higher inventory shrinkage have contributed to this decrease.
Meanwhile, Selling, General, and Administrative (SG&A) expenses rose to 24.6% of net sales in Q2 2024. Key drivers included increased retail labor costs and utility expenses.
External Factors Influencing Financial Performance
External economic conditions have also influenced Dollar General’s financial performance.
Challenges such as rising consumer debt levels and higher wage rates have impacted the spending habits of Dollar General’s core customers.
Furthermore, regulatory changes and competitive dynamics within the discount retail industry, including competitors like Walmart and Target, add pressure to sustain the same growth trajectory.
Contribution of Strategic Initiatives to Revenue
Dollar General’s innovative store concepts, like DGX and Popshelf, have also contributed to its growth.
DGX targets urban customers looking for convenience and on-the-go purchases, while Popshelf focuses on offering affordable and fun merchandise.
These strategic initiatives not only diversify the customer base but also enhance store profitability, contributing significantly to overall revenue.
Product Mix and Its Role in Revenue Generation
The company’s diverse product mix plays a significant role in its revenue generation strategy.
Private brands such as Clover Valley and Rexall have helped boost profitability by offering competitive prices at higher margins.
Consumables remain a significant revenue driver, while categories like apparel have seen moderate contributions, adding diversity but not as prominently.
Role of Leadership in Financial Strategy
Todd Vasos, as CEO, has played a pivotal role in Dollar General’s financial strategies.
Under his leadership, the company has focused on rural market penetration, cost-effective supply chains, and diversified store formats.
Leadership changes, such as Vasos replacing Jeff Owen, have added stability and continued focus on core revenue drivers, ensuring that the company remains profitable despite broader market challenges.
Financial Outlook and Future Projections
Looking ahead, Dollar General expects net sales growth to range between 4.7% to 5.3% for fiscal 2024.
The focus remains on store expansions with 730 new openings planned, along with 1,620 remodels.
Future strategies emphasize balancing cost-efficiency and expanding product offerings, ensuring sustainable growth.
FAQs About Dollar General
How Many Stores Does Dollar General Have?
As of August 2, 2024, it operates 20,345 stores across the United States and Mexico.
Who Founded Dollar General?
It was founded by James Luther Turner and Cal Turner in 1939, initially as J.L. Turner and Son.
Where Is Dollar General’s Headquarters Located?
The company is headquartered in Goodlettsville, Tennessee, U.S.
What Are Dollar General’s Major Revenue Categories?
The primary revenue contributors are consumables, seasonal items, home products, and apparel, with consumables showing the strongest growth in 2024.
How Many Employees Does Dollar General Have?
It employs approximately 170,000 people as of 2023, making it one of the largest employers in the retail sector.
Conclusion
I hope this detailed analysis gave you an insightful look into Dollar General’s financial health and growth trajectory.
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