Domino’s Pizza Inc (DPZ)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 15.84 | 17.62 | 17.07 | 16.84 | 17.21 | |
| DSO | days | 23.04 | 20.71 | 21.39 | 21.68 | 21.21 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 15.84
= 23.04
The Days Sales Outstanding (DSO) ratio for Dominos Pizza Inc has displayed a fluctuating trend over the past five years. As of December 31, 2023, the DSO stands at 23.04 days, representing the number of days it takes the company to collect revenue from credit sales. Comparing this to the previous years, we observe the following:
- In 2022, the DSO was at 21.39 days, showing an improvement from the previous year.
- In 2021, the DSO was slightly higher at 21.68 days, indicating a slight delay in collecting receivables compared to the previous year.
- In 2020, the DSO stood at 21.21 days, showing a relatively stable collection period compared to the subsequent years.
The increase in DSO from 2022 to 2023 suggests a potential challenge in collecting revenue efficiently. A high DSO may indicate potential liquidity concerns or credit risks, as longer collection periods tie up cash flow. It would be essential for Dominos Pizza Inc to monitor and actively manage its accounts receivable turnover to ensure timely collection and efficient cash flow management.
Peer comparison
Dec 31, 2023