Domino’s Pizza Inc (DPZ)
Debt-to-capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | -4,070,370 | -4,141,540 | -4,166,570 | -4,151,770 | -4,189,060 | -4,316,540 | -4,180,310 | -4,198,640 | -4,209,540 | -4,127,510 | -4,140,570 | -3,236,080 | -3,300,400 | -3,211,530 | -3,282,910 | -3,392,190 | -3,415,760 | -2,935,650 | -2,904,290 | -2,975,160 |
| Debt-to-capital ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $-4,070,370K)
= —
Dominos Pizza Inc's debt-to-capital ratio has shown variability over the past eight quarters, ranging from 5.42 to 6.16. The ratio measures the proportion of total debt relative to the total capital employed in the company, reflecting the level of financial leverage. A higher debt-to-capital ratio indicates a higher degree of financial risk as the company relies more on debt financing.
From Q4 2022 to Q1 2023, the ratio fluctuated between 5.84 and 6.00 before slightly decreasing to 5.89 in Q2 2023. This slight decrease may suggest a temporary improvement in the company's debt structure. However, the ratio increased again to 5.89 in Q3 2023 and further to 5.42 in Q4 2023, reaching the lowest level in the past eight quarters.
Overall, Dominos Pizza Inc's debt-to-capital ratio has been relatively high, consistently above 5.00, indicating a significant reliance on debt to fund its operations and investments. Investors and creditors may closely monitor this ratio to assess the company's ability to repay its debts and manage financial obligations efficiently.
Peer comparison
Dec 31, 2023