DGNEUTRAL

Return on Equity (ROE)

18.9%

Updated 176h ago

Sector Performance

65th percentile

18.9%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from every dollar of shareholders’ equity; the current 18.9% means DG earns $0.189 for each $1 of equity.

This exceeds the sector median of 13.5% and places DG in the 65th percentile among its peers, indicating above-average profitability. The year-over-year change is not available, but the quarter-over-quarter change shows a +6.2% improvement from the prior quarter’s 17.8% to the current 18.9%. The combination of a strong ROE level (above the sector median) and a positive short-term trend points to a lower risk profile relative to peers, though the lack of longer-term trend data limits visibility. This metric supports the overall NEUTRAL verdict, as DG’s ROE is solid but not extraordinarily high, leaving room for further evaluation of other factors.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about DG?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are DG's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.