Domino’s Pizza Inc (DPZ)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,479,360 | 4,537,160 | 4,357,370 | 4,117,410 | 3,618,770 |
| Property, plant and equipment | US$ in thousands | 304,365 | 302,235 | 324,065 | 297,364 | 242,881 |
| Fixed asset turnover | 14.72 | 15.01 | 13.45 | 13.85 | 14.90 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,479,360K ÷ $304,365K
= 14.72
The fixed asset turnover ratio of Dominos Pizza Inc has displayed variations over the past five years. The ratio measures how efficiently the company generates revenue from its fixed assets. A higher fixed asset turnover indicates that the company is utilizing its fixed assets effectively to generate sales.
In 2023, the fixed asset turnover ratio was 14.72, slightly lower than the previous year's ratio of 15.01. This decrease suggests that Dominos Pizza Inc generated slightly less revenue per dollar of fixed assets investment compared to the previous year.
In 2022, the fixed asset turnover ratio was 13.45, showing a decrease from the previous year's ratio of 13.85. This decline indicates a decrease in the efficiency of generating sales from fixed assets.
The ratio was highest in 2019 at 14.90, indicating that the company was most efficient in generating revenue from its fixed assets in that year.
Overall, although there have been fluctuations in the fixed asset turnover ratio of Dominos Pizza Inc over the years, the general trend has shown a relatively high level of efficiency in utilizing fixed assets to generate sales. Further analysis and comparison with industry benchmarks could provide more insights into the company's operational efficiency and asset utilization.
Peer comparison
Dec 31, 2023