Domino’s Pizza Inc (DPZ)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 33.17 | 35.41 | 39.06 | 37.83 | 41.85 | |
| DOH | days | 11.00 | 10.31 | 9.34 | 9.65 | 8.72 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 33.17
= 11.00
Dominos Pizza Inc's days of inventory on hand (DOH) has shown a gradual increase over the past five years. Specifically, the DOH has moved from 8.72 days at the end of 2019 to 11.00 days at the end of 2023. This indicates that, on average, it took Dominos Pizza Inc 11 days to sell its inventory at the end of 2023.
The increasing trend in DOH may suggest that Dominos Pizza Inc is holding onto its inventory for a longer period, which could tie up capital and possibly lead to increased holding costs. However, a higher DOH may also indicate that Dominos Pizza Inc is becoming more efficient in managing its inventory levels, as it requires more time to sell its inventory.
Investors and stakeholders should closely monitor Dominos Pizza Inc's DOH over time to assess the effectiveness of inventory management strategies and potential implications for the company's financial performance.
Peer comparison
Dec 31, 2023