Domino's Pizza Inc Common Stock (DPZ)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 186,126 | 114,098 | 60,356 | 148,160 | 168,821 |
| Short-term investments | US$ in thousands | — | — | 13,395 | 15,433 | 13,251 |
| Receivables | US$ in thousands | 309,104 | 282,809 | 257,492 | 255,327 | 244,560 |
| Total current liabilities | US$ in thousands | 1,612,460 | 547,350 | 536,621 | 590,741 | 470,819 |
| Quick ratio | 0.31 | 0.73 | 0.62 | 0.71 | 0.91 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($186,126K
+ $—K
+ $309,104K)
÷ $1,612,460K
= 0.31
The quick ratio of Domino's Pizza Inc Common Stock has fluctuated over the past five years, indicating varying levels of liquidity. In December 2020, the quick ratio was 0.91, suggesting that the company had $0.91 in liquid assets available to cover each dollar of current liabilities. However, this ratio decreased to 0.71 by December 2021, indicating a potential decline in the company's ability to meet short-term obligations without relying on inventory.
By December 2022, the quick ratio further decreased to 0.62, signaling a continued deterioration in liquidity. This may raise concerns about the company's ability to address immediate financial obligations efficiently. The ratio improved slightly to 0.73 by December 2023, suggesting a partial recovery in liquidity levels.
However, by December 2024, the quick ratio fell sharply to 0.31, highlighting a significant decrease in the company's ability to cover short-term liabilities with its readily available assets. This low ratio may indicate potential liquidity constraints and could pose challenges in meeting immediate financial obligations without acquiring additional funding.
Overall, the decreasing trend in Domino's Pizza Inc Common Stock's quick ratio over the years raises concerns about its liquidity position and ability to manage short-term financial obligations effectively.
Peer comparison
Dec 31, 2024