Domino's Pizza Inc Common Stock (DPZ)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,706,420 | 4,479,360 | 4,537,160 | 4,357,370 | 4,117,410 |
| Receivables | US$ in thousands | 309,104 | 282,809 | 257,492 | 255,327 | 244,560 |
| Receivables turnover | 15.23 | 15.84 | 17.62 | 17.07 | 16.84 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $4,706,420K ÷ $309,104K
= 15.23
The receivables turnover ratio for Domino's Pizza Inc Common Stock has shown a generally increasing trend over the years, starting at 16.84 in December 2020 and reaching 15.23 by December 2024. This indicates that the company is collecting its accounts receivable more frequently and efficiently each year.
However, there was a slight decrease from 17.62 in December 2022 to 15.84 in December 2023, suggesting a temporary slowdown in the collection of receivables during that period. Overall, the company's ability to convert its accounts receivable into cash has remained relatively strong throughout the years, reflecting effective credit management practices.
It is important for investors and stakeholders to monitor this ratio to ensure that the company maintains a healthy balance between sales and collections, which is crucial for its overall financial health and liquidity position.
Peer comparison
Dec 31, 2024