Domino's Pizza Inc Common Stock (DPZ)

Liquidity ratios

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
Current ratio 0.56 1.71 1.94 1.76 1.49 1.41 1.46 1.49 1.47 1.43 1.47 1.45 1.46 1.72 1.77 1.84 1.85 1.96 2.02 1.76
Quick ratio 0.31 0.92 1.12 0.96 0.73 0.59 0.62 0.74 0.62 0.20 0.20 0.69 0.71 0.50 0.53 1.17 0.91 0.68 0.54 0.44
Cash ratio 0.12 0.37 0.56 0.40 0.21 0.14 0.14 0.28 0.14 0.20 0.20 0.28 0.28 0.50 0.53 0.70 0.39 0.68 0.54 0.44

Domino's Pizza Inc Common Stock's liquidity ratios have shown some fluctuations over the years. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has generally been above 1, indicating a healthy liquidity position. However, there was a significant drop in the current ratio at the end of December 2024, which may raise concerns about the company's short-term liquidity.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also exhibits variability over the periods. While the quick ratio was generally lower than the current ratio, it showed improvement in March 2024 and June 2024 before declining again at the end of December 2024.

The cash ratio, representing the most conservative liquidity measure by considering only cash and cash equivalents in relation to current liabilities, has also fluctuated. The company's cash ratio was relatively stable until it dropped sharply at the end of December 2024, indicating a potential decrease in the company's ability to meet its short-term obligations with cash on hand.

Overall, the liquidity ratios of Domino's Pizza Inc Common Stock suggest that the company has maintained a reasonable ability to meet its short-term obligations, but the significant decrease in liquidity towards the end of December 2024 may require closer monitoring and management attention to ensure financial stability.

Additional liquidity measure

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
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

The cash conversion cycle of Domino's Pizza Inc Common Stock has exhibited fluctuating trends over the past few years. The cycle reflects the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

Analyzing the data provided, it is observed that the cash conversion cycle has shown both positive and negative values. Negative values indicate that the company is efficient in managing its working capital and turning its assets into cash quickly. Conversely, positive values suggest that the company may be experiencing delays in converting its investments into cash.

Specifically, there were periods where the cash conversion cycle was negative, such as in June 2020, September 2020, June 2021, September 2021, and June 2022. These periods signify that Domino's Pizza Inc was able to manage its working capital effectively by swiftly converting its resources into cash.

Conversely, there were instances of the cash conversion cycle being positive, like in December 2020, March 2021, December 2021, and December 2024, indicating potential delays in the cash conversion process during those periods.

Overall, while the cash conversion cycle of Domino's Pizza Inc Common Stock has shown variability, it is important for investors and analysts to monitor these trends closely to assess the company's efficiency in managing its working capital and cash flow operations.