Domino's Pizza Inc Common Stock (DPZ)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 39.28% | 38.56% | 36.34% | 38.74% | 38.73% |
| Operating profit margin | 18.68% | 18.30% | 16.93% | 17.91% | 17.62% |
| Pretax margin | 15.35% | 14.57% | 12.63% | 14.36% | 13.48% |
| Net profit margin | 12.41% | 11.59% | 9.97% | 11.72% | 11.93% |
Domino's Pizza Inc Common Stock has shown consistent performance in terms of profitability ratios over the past five years. The gross profit margin has remained relatively stable, ranging from 36.34% in 2022 to 39.28% in 2024, indicating the company's ability to efficiently generate profits from its core operations.
The operating profit margin, which reflects the company's profitability from normal business operations, has also shown a consistent trend, ranging from 16.93% in 2022 to 18.68% in 2024. This suggests effective cost management and operational efficiency within the business.
Furthermore, the pretax margin, which measures the company's profitability before taxes, has been on an increasing trend, from 12.63% in 2022 to 15.35% in 2024. This indicates the company's ability to generate profits while effectively managing tax implications.
Lastly, the net profit margin, representing the company's overall profitability after all expenses have been deducted, has also shown improvement over the years, ranging from 9.97% in 2022 to 12.41% in 2024. This indicates that Domino's Pizza Inc Common Stock has been able to translate its revenues into higher profits for its shareholders.
Overall, the profitability ratios demonstrate that Domino's Pizza Inc Common Stock has been able to maintain and enhance its profitability over the years, showcasing strong financial performance and effective management of its operations.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 50.60% | 48.93% | 47.93% | 46.68% | 46.30% |
| Return on assets (ROA) | 33.63% | 30.99% | 28.23% | 30.53% | 31.35% |
| Return on total capital | — | — | — | — | — |
| Return on equity (ROE) | — | — | — | — | — |
Domino's Pizza Inc Common Stock has shown consistent improvement in its operating profitability over the years, as reflected in its Operating Return on Assets (Operating ROA) ratio. The company's Operating ROA has been on an upward trend, increasing from 46.30% in 2020 to 50.60% in 2024, indicating that it has been effectively generating operating profits relative to its total assets.
On the other hand, the Return on Assets (ROA) ratio, which measures the company's overall profitability in relation to its total assets, has been somewhat volatile. Despite a slight dip in 2022, the ROA recovered and even exceeded the 2020 level by 2024, reaching 33.63%. This suggests that Domino's Pizza Inc Common Stock has been able to effectively manage its assets to generate profits for its stakeholders.
However, the data provided does not include Return on Total Capital or Return on Equity (ROE) ratios, which could provide further insight into the company's financial performance and its ability to generate returns for its shareholders' equity and invested capital.
Overall, based on the Operating ROA and ROA ratios alone, Domino's Pizza Inc Common Stock appears to be efficiently utilizing its assets to drive profitability and create value for its investors over the years.