Domino's Pizza Inc Common Stock (DPZ)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,857,910 | 2,751,940 | 2,888,550 | 2,669,130 | 2,522,920 |
| Inventory | US$ in thousands | 70,919 | 82,964 | 81,570 | 68,328 | 66,683 |
| Inventory turnover | 40.30 | 33.17 | 35.41 | 39.06 | 37.83 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,857,910K ÷ $70,919K
= 40.30
Domino's Pizza Inc Common Stock has shown a consistent improvement in its inventory turnover ratio over the past five years. The inventory turnover ratio measures how efficiently the company manages its inventory by indicating the number of times its inventory is sold and replaced during a period.
In December 31, 2020, the inventory turnover ratio was 37.83, indicating that the company's inventory turned over approximately 37.83 times during that year. By December 31, 2021, this ratio increased to 39.06, suggesting that the company managed its inventory even more efficiently, selling and replacing its inventory 39.06 times within the year.
However, in December 31, 2022, there was a slight decrease in the inventory turnover ratio to 35.41, which could be attributed to various factors such as changes in consumer demand, supply chain disruptions, or inventory management practices.
Subsequently, by December 31, 2023, the inventory turnover ratio further decreased to 33.17, indicating a potential slowdown in the company's inventory management efficiency. Nonetheless, by December 31, 2024, the ratio bounced back and improved to 40.30, reaching an all-time high over the five-year period.
Overall, despite some fluctuations, Domino's Pizza Inc Common Stock has generally demonstrated a solid trend of improving its inventory turnover ratio, which suggests effective inventory management practices and efficient utilization of its inventory resources over the years.
Peer comparison
Dec 31, 2024