Domino’s Pizza Inc (DPZ)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 817,291 | 790,654 | 860,540 | 869,384 | 787,617 |
| Total current liabilities | US$ in thousands | 547,350 | 536,621 | 590,741 | 470,819 | 453,831 |
| Current ratio | 1.49 | 1.47 | 1.46 | 1.85 | 1.74 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $817,291K ÷ $547,350K
= 1.49
Dominos Pizza Inc's current ratio has exhibited a fluctuating trend over the past five years. The current ratio measures the company's ability to meet its short-term obligations using its current assets. The current ratio indicates the company's liquidity position, with a higher ratio suggesting a stronger ability to cover its short-term liabilities.
In 2023, Dominos Pizza Inc's current ratio stood at 1.49, slightly higher compared to the previous year. This implies that the company had $1.49 in current assets for every dollar of current liabilities, indicating a modest improvement in liquidity.
However, when we compare the current ratio to prior years, we observe a downward trend since 2021. The current ratio has decreased from a high of 1.85 in 2021 to 1.49 in 2023. This decline may raise concerns about the company's ability to meet its short-term obligations using its current assets effectively.
It is essential for Dominos Pizza Inc to monitor its current ratio closely and implement strategies to improve liquidity and ensure the company can meet its short-term obligations efficiently in the future.
Peer comparison
Dec 31, 2023