Domino's Pizza Inc Common Stock (DPZ)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 40.30 | 33.17 | 35.41 | 39.06 | 37.83 |
| Receivables turnover | 15.23 | 15.84 | 17.62 | 17.07 | 16.84 |
| Payables turnover | 33.27 | 25.90 | 32.20 | 29.16 | 26.70 |
| Working capital turnover | — | 16.59 | 17.86 | 16.15 | 10.33 |
Domino's Pizza Inc's activity ratios provide insight into how efficiently the company manages its inventory, receivables, payables, and working capital.
1. Inventory Turnover: The inventory turnover ratio measures how many times a company sells and replaces its inventory during a specific period. Domino's Pizza Inc's inventory turnover has generally been increasing over the years, indicating that the company is selling its inventory more frequently. In 2024, the inventory turnover reached its highest level at 40.30, suggesting efficient inventory management.
2. Receivables Turnover: The receivables turnover ratio reflects how well a company collects its receivables from customers. Domino's Pizza Inc's receivables turnover has shown a slight decrease from 2022 to 2024, indicating that it takes a longer time for the company to collect payments from customers. However, the turnover ratios are at a reasonable level, suggesting effective credit and collection policies.
3. Payables Turnover: The payables turnover ratio measures how quickly a company pays its suppliers. Domino's Pizza Inc's payables turnover has been fluctuating but generally increasing over the years, indicating that the company pays its suppliers more quickly. The higher turnover ratios suggest efficient management of payables.
4. Working Capital Turnover: The working capital turnover ratio assesses how efficiently a company generates revenue relative to its working capital. From 2020 to 2023, Domino's Pizza Inc's working capital turnover ratio increased, indicating improved efficiency in utilizing its working capital to generate sales. However, there is missing data for 2024, making it challenging to assess the trend for that year.
Overall, Domino's Pizza Inc's activity ratios reflect a trend towards more efficient management of inventory, receivables, and payables. Continuous monitoring and analysis of these ratios can help stakeholders evaluate the company's operational efficiency and financial performance.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 9.06 | 11.00 | 10.31 | 9.34 | 9.65 |
| Days of sales outstanding (DSO) | days | 23.97 | 23.04 | 20.71 | 21.39 | 21.68 |
| Number of days of payables | days | 10.97 | 14.09 | 11.34 | 12.52 | 13.67 |
Domino's Pizza Inc Common Stock's Days of Inventory on Hand (DOH) decreased from 9.65 days in 2020 to 9.06 days in 2024, indicating that the company managed its inventory more efficiently over the period. This reduction suggests a potential improvement in inventory management practices and turnover.
The Days of Sales Outstanding (DSO) metric shows an increase from 21.68 days in 2020 to 23.97 days in 2024. This indicates that it took the company longer to collect revenue from customers during the period, which may have implications for cash flow and liquidity management.
On the other hand, the Number of Days of Payables decreased from 13.67 days in 2020 to 10.97 days in 2024. This decline suggests that Domino's Pizza Inc Common Stock was able to pay its suppliers more quickly over the years, potentially improving relationships with vendors and the company's working capital position.
Overall, the trends in these activity ratios indicate shifts in inventory management, accounts receivable collection, and accounts payable practices, which can provide valuable insights into Domino's Pizza Inc Common Stock's operational efficiency and financial performance.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 15.63 | 14.72 | 15.01 | 13.45 | 13.85 |
| Total asset turnover | 2.71 | 2.67 | 2.83 | 2.61 | 2.63 |
Domino's Pizza Inc's Fixed Asset Turnover has been relatively stable over the five-year period, ranging from 13.45 to 15.63. This indicates that the company generates a significant amount of revenue per dollar invested in fixed assets. The increasing trend from 2020 to 2024 suggests that the company has been utilizing its fixed assets more efficiently to generate sales.
In terms of Total Asset Turnover, the company's performance has been steady, with values fluctuating between 2.61 and 2.83. This ratio signifies how effectively the company is generating sales from its total assets. The slight variations in the total asset turnover ratio indicate that Domino's Pizza Inc has maintained a consistent level of efficiency in utilizing its total assets to drive revenue.
Overall, both the Fixed Asset Turnover and Total Asset Turnover ratios suggest that Domino's Pizza Inc has been effectively managing its assets to generate revenue over the five-year period. The increasing trend in Fixed Asset Turnover indicates improved efficiency in utilizing fixed assets, while the stable Total Asset Turnover ratio reflects the company's ability to generate sales relative to its total asset base.