Domino's Pizza Inc Common Stock (DPZ)
Cash conversion cycle
| Dec 31, 2024 | Sep 8, 2024 | Jun 16, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 9.06 | 8.88 | 8.98 | 10.00 | 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 |
| Days of sales outstanding (DSO) | days | 23.97 | 21.80 | 22.63 | 22.96 | 23.04 | 20.42 | 21.04 | 20.79 | 20.71 | — | — | 20.56 | 21.39 | — | — | 20.36 | 21.68 | — | — | — |
| Number of days of payables | days | 10.97 | 12.56 | 14.33 | 14.68 | 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 |
| Cash conversion cycle | days | 22.06 | 18.12 | 17.28 | 18.28 | 19.95 | 16.28 | 17.81 | 17.72 | 19.69 | -2.40 | -3.85 | 18.59 | 18.21 | -6.50 | -6.25 | 15.94 | 17.66 | -3.44 | -5.71 | -7.43 |
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 fluctuations over the periods analyzed.
From March 22, 2020, to September 6, 2020, the company had negative cash conversion cycles, indicating efficient management of cash flows. However, from December 31, 2020, to March 31, 2021, there was a significant increase in the cash conversion cycle to around 15-17 days, indicating a longer period for the company to convert its resources into cash.
Subsequently, from June 20, 2021, to September 11, 2022, Domino's Pizza Inc went back to negative cash conversion cycles, suggesting improved efficiency in managing working capital. This trend did not continue consistently as the cash conversion cycle increased to around 19-22 days from December 31, 2022, to December 31, 2024.
Overall, the company's cash conversion cycle has experienced variability, with periods of both efficiency and inefficiency in managing its operating cycle and working capital requirements. Monitoring this cycle is crucial for assessing the company's ability to efficiently convert its resources into cash and manage its liquidity effectively.
Peer comparison
Dec 31, 2024