Domino's Pizza Inc Common Stock (DPZ)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 9.06 | 11.00 | 10.31 | 9.34 | 9.65 |
| Days of sales outstanding (DSO) | days | 23.97 | 23.04 | 20.71 | 21.39 | 21.68 |
| Number of days of payables | days | 10.97 | 14.09 | 11.34 | 12.52 | 13.67 |
| Cash conversion cycle | days | 22.06 | 19.95 | 19.69 | 18.21 | 17.66 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 9.06 + 23.97 – 10.97
= 22.06
The cash conversion cycle of Domino's Pizza Inc Common Stock has shown a gradual increase over the years, starting at 17.66 days on December 31, 2020, and reaching 22.06 days by December 31, 2024. This indicates that the company takes longer to convert its investments in inventory and other resources into cash receipts from sales. A longer cash conversion cycle may suggest inefficiencies in managing working capital or delays in receiving payments from customers. It is important for Domino's Pizza Inc to monitor and evaluate its cash conversion cycle regularly to optimize its cash flow management and operational efficiency.
Peer comparison
Dec 31, 2024