Domino’s Pizza Inc (DPZ)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 114,098 | 60,356 | 148,160 | 168,821 | 190,615 |
| Short-term investments | US$ in thousands | — | 13,395 | 15,433 | 13,251 | 11,982 |
| Total current liabilities | US$ in thousands | 547,350 | 536,621 | 590,741 | 470,819 | 453,831 |
| Cash ratio | 0.21 | 0.14 | 0.28 | 0.39 | 0.45 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($114,098K
+ $—K)
÷ $547,350K
= 0.21
Dominos Pizza Inc's cash ratio has shown a declining trend over the past five years. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents.
In Dec 31, 2023, the cash ratio stood at 0.26, indicating that the company had $0.26 in cash and cash equivalents for every $1 of current liabilities. This ratio was higher than Jan 1, 2023 (0.18), but it has decreased compared to Jan 2, 2022 (0.30), Jan 3, 2021 (0.41), and Dec 29, 2019 (0.46).
A cash ratio below 1 suggests that the company may have difficulty meeting its short-term obligations solely using its cash on hand. The decreasing trend in Dominos Pizza Inc's cash ratio may indicate a potential liquidity risk and may warrant further analysis into the company's cash management and liquidity position.
Peer comparison
Dec 31, 2023