Papa John's International Inc (PZZA)

Short-term

Turnover ratios

1. Inventory Turnover: The inventory turnover ratio for Papa John's International, Inc. has been consistently reported as 0.00 for the past five years. This indicates that the company is not efficiently managing its inventory levels, or it may suggest that the company has inactive or obsolete inventory that is not being sold.

2. Receivables Turnover: The receivables turnover ratio has fluctuated over the years, with the highest value of 20.06 in 2021 and the lowest of 17.46 in 2019. A higher turnover ratio indicates that the company is collecting its accounts receivable more quickly. The upward trend in recent years shows an improvement in the company's efficiency in collecting payments from customers.

3. Payables Turnover: The payables turnover ratio has been consistently reported as 0.00 for the past five years. A low or zero turnover ratio for payables may indicate that the company is taking longer to pay its suppliers, potentially suggesting liquidity or cash flow issues.

4. Working Capital Turnover: Working capital turnover is not available for the recent years (denoted by "-"), however, in 2020, the company had a high working capital turnover of 103.39. This indicates that the company efficiently utilized its working capital to generate revenue during that period.

In summary, while the company has shown improvements in managing its receivables turnover, the issues with inventory turnover and payables turnover highlight areas that Papa John's International, Inc. may need to address to enhance its operational efficiency and overall financial health.

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Average number of days

Based on the activity ratios provided for Papa John's International, Inc., the Days of Sales Outstanding (DSO) has seen fluctuations over the past five years. In 2023, the DSO decreased to 19.14 days compared to 20.52 days in 2022, which indicates an improvement in the company's ability to collect its accounts receivable more efficiently.

However, without the data for Days of Inventory on Hand and Number of Days of Payables, a comprehensive analysis of the cash conversion cycle and working capital management is not possible. These additional activity ratios are crucial in understanding the efficiency of inventory management and the company's relationship with its suppliers in terms of payment cycles.

To provide a more thorough assessment of Papa John's International, Inc.'s liquidity management and operational efficiency, it would be beneficial to have the complete set of activity ratios including Days of Inventory on Hand and Number of Days of Payables for a holistic view of the company's performance in managing its working capital.

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Long-term

The fixed asset turnover ratio for Papa John's International, Inc. has shown a decreasing trend over the past five years, indicating that the company is generating less revenue for each dollar invested in fixed assets. This could suggest inefficiencies in utilizing fixed assets to generate sales. However, the ratios are still relatively high, with values ranging from 7.55 to 9.24, indicating that the company is efficient in converting fixed assets into sales.

On the other hand, the total asset turnover ratio has been relatively stable over the same period, fluctuating between 2.08 and 2.44. This ratio measures how efficiently the company is using all its assets to generate revenue. A higher ratio is generally preferred as it indicates that the company is generating more sales for each dollar of assets it owns.

Overall, while the fixed asset turnover ratio has shown a slight declining trend, both ratios suggest that Papa John's International is efficient in utilizing its assets to generate sales. It is important for the company to continue monitoring and managing its fixed assets effectively to maintain or improve its overall asset turnover efficiency.