Domino's Pizza Inc Common Stock (DPZ)
Days of inventory on hand (DOH)
| 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 | |
| DOH | days | 9.06 | 11.00 | 10.31 | 9.34 | 9.65 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 40.30
= 9.06
Domino's Pizza Inc Common Stock's days of inventory on hand (DOH) has experienced fluctuations over the past five years. The trend shows a slight increase in DOH from 9.65 days as of December 31, 2020, to 11.00 days as of December 31, 2023, before slightly decreasing to 9.06 days as of December 31, 2024.
The increase in DOH signifies that, on average, Domino's Pizza Inc is holding inventory for a longer period before it is sold. This could indicate potential issues with inventory management, overstocking, or slow-moving inventory. Conversely, the decrease in DOH in 2024 could suggest improvements in the management of inventory levels.
It would be beneficial for the company to further analyze the reasons behind these fluctuations in DOH and take necessary steps to optimize inventory levels to enhance efficiency and profitability in the long term.
Peer comparison
Dec 31, 2024