Domino’s Pizza Inc (DPZ)
Quick ratio
| 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 | Dec 31, 2019 | Sep 8, 2019 | Jun 16, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 114,098 | 80,879 | 77,020 | 154,193 | 60,356 | 114,776 | 114,353 | 164,962 | 148,160 | 295,352 | 292,095 | 267,719 | 168,821 | 330,719 | 247,952 | 200,801 | 190,615 | 66,706 | 108,259 | 83,114 |
| Short-term investments | US$ in thousands | — | — | — | — | 13,395 | — | — | — | 15,433 | — | — | 82,500 | 13,251 | — | — | — | 11,982 | — | — | — |
| Receivables | US$ in thousands | 282,809 | 249,995 | 260,024 | 259,163 | 257,492 | — | — | 246,978 | 255,327 | — | — | 235,789 | 244,560 | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 547,350 | 562,941 | 547,528 | 556,365 | 536,621 | 578,737 | 575,449 | 594,824 | 590,741 | 596,354 | 554,354 | 501,835 | 470,819 | 488,525 | 459,868 | 452,169 | 453,831 | 421,245 | 412,906 | 412,013 |
| Quick ratio | 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 | 0.45 | 0.16 | 0.26 | 0.20 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($114,098K
+ $—K
+ $282,809K)
÷ $547,350K
= 0.73
The quick ratio, also known as the acid-test ratio, is a measure of a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher is generally considered healthy, as it indicates that a company has enough liquid assets to cover its current liabilities.
Analyzing Dominos Pizza Inc's quick ratio over the past eight quarters, we can see fluctuations in the company's ability to meet its short-term obligations. In Q4 2023, the quick ratio was 0.78, which improved from the previous quarter but was below the ideal threshold of 1. This suggests that Dominos Pizza Inc may have had some difficulty meeting its immediate obligations with its current liquid assets during that period.
Looking at the trend over the past year, the quick ratio has varied between 0.66 and 0.80, indicating some inconsistency in the company's liquidity position. It is worth noting that a quick ratio below 1 may indicate a potential liquidity risk, as the company may struggle to cover its short-term liabilities with its available liquid assets.
Overall, Dominos Pizza Inc's quick ratio fluctuates but generally remains below the ideal benchmark of 1. Investors and stakeholders may need to monitor the company's liquidity position closely to ensure it can meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023