Domino’s Pizza Inc (DPZ)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 33.17 39.73 43.06 41.64 35.41 39.20 39.48 34.96 39.06 41.10 44.72 40.53 37.83 36.71 34.46 45.61 41.85 42.76 48.95 47.26
Receivables turnover 15.84 17.87 17.34 17.56 17.62 — — 17.75 17.07 — — 17.93 16.84 — — — — — — —
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
Working capital turnover 16.59 19.20 17.89 16.77 17.86 18.12 16.34 16.46 16.15 10.17 10.18 9.97 10.33 8.36 8.06 10.68 10.84 19.29 15.25 19.51

Inventory turnover measures how efficiently a company is managing its inventory. Dominos Pizza Inc's inventory turnover has been consistently high, indicating that the company is selling and restocking its inventory quickly. The increasing trend from Q1 to Q4 of 2023 suggests improved efficiency.

Receivables turnover reflects how effectively the company is collecting payment from customers. Dominos Pizza Inc's receivables turnover has been fairly stable over the quarters, indicating a consistent collection process. The ratio is relatively high, suggesting the company is efficient in collecting payments.

Payables turnover indicates how quickly a company is paying its suppliers. Dominos Pizza Inc's payables turnover has also been stable, and the decreasing trend from Q1 to Q4 of 2023 indicates a slight delay in payments to suppliers.

Working capital turnover demonstrates how efficiently the company is using its working capital to generate revenue. Dominos Pizza Inc's working capital turnover has been consistent and relatively high, indicating that the company is effectively utilizing its working capital to generate sales.

Overall, Dominos Pizza Inc shows efficient activity ratios, with high inventory turnover and working capital turnover, stable receivables turnover, and slightly decreasing payables turnover. This suggests good management of inventory, receivables, payables, and working capital to support the company's operations.

Average number of days

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
Days of inventory on hand (DOH) days 11.00 9.19 8.48 8.77 10.31 9.31 9.25 10.44 9.34 8.88 8.16 9.01 9.65 9.94 10.59 8.00 8.72 8.54 7.46 7.72
Days of sales outstanding (DSO) days 23.04 20.42 21.04 20.79 20.71 — — 20.56 21.39 — — 20.36 21.68 — — — — — — —
Number of days of payables days 14.09 13.32 11.71 11.84 11.34 11.71 13.10 12.41 12.52 15.38 14.42 13.42 13.67 13.39 16.30 15.43 18.30 16.01 13.89 14.36

Analyzing the activity ratios of Dominos Pizza Inc, we observe the following trends:

1. Days of Inventory on Hand (DOH):
- The DOH has been fluctuating over the past year, with a general downward trend from Q4 2022 to Q2 2023, indicating that the company is managing its inventory more efficiently and holding less inventory on hand.
- Q2 2023 reflects the lowest DOH of 8.48 days, suggesting that Dominos Pizza Inc is turning over its inventory at a faster rate compared to previous quarters.

2. Days of Sales Outstanding (DSO):
- The DSO has been relatively stable, hovering around the 20-23 day range throughout the quarters observed.
- This indicates that Dominos Pizza Inc is collecting its accounts receivable in a timely manner, with minimal fluctuations in the time taken to convert sales into cash.

3. Number of Days of Payables:
- The number of days of payables have shown some variability over the quarters, with slight fluctuations in the range of 11-14 days.
- Q4 2023 recorded the highest number of days of payables at 14.09 days, suggesting that the company is taking longer to pay its suppliers compared to other quarters.

Overall, the trends in Dominos Pizza Inc's activity ratios suggest that the company is effectively managing its inventory, collecting receivables promptly, and managing payables efficiently. However, close monitoring of these ratios is recommended to ensure continued operational effectiveness and financial stability.

Long-term

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
Fixed asset turnover 14.72 15.39 15.24 15.22 15.01 14.42 14.08 13.72 13.45 14.90 14.69 14.41 13.85 14.91 14.63 15.19 14.90 16.42 16.42 15.29
Total asset turnover 2.67 2.76 2.83 2.77 2.83 2.73 2.64 2.62 2.61 2.48 2.52 2.54 2.63 2.41 2.38 2.63 2.62 3.06 2.99 3.03

Dominos Pizza Inc's fixed asset turnover has been consistently high over the past eight quarters, ranging from 13.72 to 15.39. This indicates that the company is generating substantial sales relative to its fixed assets. The increasing trend in fixed asset turnover suggests that Dominos is improving its efficiency in utilizing its fixed assets to generate revenues.

On the other hand, the total asset turnover ratio has also shown a relatively stable trend, varying between 2.62 and 2.83 during the same period. This ratio measures how efficiently the company is using all its assets to generate revenue. Dominos Pizza Inc's total asset turnover indicates that it is effectively utilizing its total assets to generate sales, with a slight upward trend over the quarters.

Overall, Dominos Pizza Inc's long-term activity ratios reflect a strong ability to generate revenue efficiently from both its fixed and total assets, which is a positive indicator of the company's operational efficiency and asset utilization.