Domino’s Pizza Inc (DPZ)
Payables turnover
| Dec 31, 2023 | Sep 10, 2023 | Jun 18, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 11, 2022 | Jun 19, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 12, 2021 | Jun 20, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 6, 2020 | Jun 14, 2020 | Mar 22, 2020 | Dec 31, 2019 | Sep 8, 2019 | Jun 16, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,751,941 | 2,768,378 | 2,825,932 | 2,884,878 | 2,888,552 | 2,845,200 | 2,771,244 | 2,717,109 | 2,669,131 | 2,653,422 | 2,646,370 | 2,584,520 | 2,522,918 | 2,404,679 | 2,303,502 | 2,235,546 | 2,216,275 | 2,181,391 | 2,167,516 | 2,158,356 |
| Payables | US$ in thousands | 106,267 | 101,058 | 90,688 | 93,547 | 89,715 | 91,299 | 99,465 | 92,353 | 91,547 | 111,780 | 104,515 | 95,042 | 94,499 | 88,188 | 102,896 | 94,502 | 111,101 | 95,657 | 82,456 | 84,888 |
| Payables turnover | 25.90 | 27.39 | 31.16 | 30.84 | 32.20 | 31.16 | 27.86 | 29.42 | 29.16 | 23.74 | 25.32 | 27.19 | 26.70 | 27.27 | 22.39 | 23.66 | 19.95 | 22.80 | 26.29 | 25.43 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,751,941K ÷ $106,267K
= 25.90
The payables turnover ratio for Dominos Pizza Inc has been fluctuating over the past eight quarters. It ranged from a low of 25.90 in Q4 2023 to a high of 32.20 in Q4 2022. This ratio indicates how efficiently the company is managing its accounts payable by paying off its suppliers. A higher payables turnover ratio suggests that the company is paying its suppliers more quickly.
In general, Dominos Pizza Inc has shown a consistent ability to pay off its suppliers relatively quickly, as evidenced by the payables turnover ratios above 25 in each quarter. This indicates a strong working capital management strategy. However, the fluctuations in the ratio over the quarters may imply some variability in the company's relationships with suppliers or changes in payment terms.
Further analysis would be needed to understand the reasons behind these fluctuations and to determine if there are any underlying issues affecting the company's payables management.
Peer comparison
Dec 31, 2023