Domino's Pizza Inc Common Stock (DPZ)
Days of sales outstanding (DSO)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 15.23 | 15.84 | 17.62 | 17.07 | 16.84 | |
| DSO | days | 23.97 | 23.04 | 20.71 | 21.39 | 21.68 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 15.23
= 23.97
Domino's Pizza Inc Common Stock has shown a consistent trend in its days of sales outstanding (DSO) ratio over the past five years. The DSO decreased from 21.68 days on December 31, 2020, to 20.71 days on December 31, 2022, reflecting an improvement in the company's ability to collect its accounts receivable more efficiently. However, there was a slight increase in DSO to 23.04 days on December 31, 2023, followed by a further rise to 23.97 days on December 31, 2024.
The increase in DSO in the most recent years may indicate potential challenges in collecting sales revenue promptly, which could impact Domino's cash flow and liquidity. It is essential for investors and analysts to closely monitor trends in DSO to assess the effectiveness of the company's credit policies and overall financial health.
Peer comparison
Dec 31, 2024