Papa John's International Inc (PZZA)

Short-term

Turnover ratios

The analysis of Papa John's International Inc activity ratios reveals several key insights:

1. Inventory Turnover: The inventory turnover ratio for Papa John's shows a generally stable trend over the years, ranging from a high of 55.77 in March 2021 to a low of 40.57 in September 2022. This indicates that the company efficiently manages its inventory, with higher turnover ratios generally indicating effective inventory management.

2. Receivables Turnover: The data provided does not include information on receivables turnover, making it challenging to evaluate how efficiently the company collects on its credit sales. A higher receivables turnover ratio would indicate a faster collection of accounts receivable, demonstrating effective credit management.

3. Payables Turnover: Similar to receivables turnover, there is no data available on payables turnover for Papa John's. A higher payables turnover ratio would suggest that the company is efficiently managing its accounts payable, potentially benefiting from favorable credit terms.

4. Working Capital Turnover: The working capital turnover ratio for Papa John's fluctuates significantly over the years, with notable peaks such as 274.97 in March 2022. This indicates that the company effectively utilizes its working capital to generate sales revenue, with higher ratios suggesting efficient capital deployment.

In conclusion, while the inventory turnover and working capital turnover ratios provide some insights into Papa John's operational efficiency, the lack of data on receivables and payables turnovers limits a comprehensive assessment of the company's overall activity ratios.

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Average number of days

Based on the provided data for Papa John's International Inc, the Days of Inventory on Hand (DOH) has shown some fluctuations over the periods analyzed. The average DOH over the last five reported periods is approximately 8 days, indicating that on average, Papa John's holds about 8 days' worth of inventory on hand.

The Days of Sales Outstanding (DSO) data is missing for all the periods provided, indicating that specific information regarding the collection period for accounts receivable is not available for analysis at this time.

Similarly, the Number of Days of Payables data is also not available for analysis for the periods provided, which would have helped in assessing how long it takes the company to pay its suppliers.

While the DOH ratio is essential for understanding how efficiently the company manages its inventory, the absence of DSO and Payables data hinders the comprehensive analysis of Papa John's activity ratios related to accounts receivable and accounts payable management.

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Long-term

The fixed asset turnover ratio measures how efficiently a company generates revenue from its investment in fixed assets. For Papa John's International Inc, the fixed asset turnover ratio has shown some fluctuations over the years, starting at 7.95 in March 2020 and peaking at 9.71 in March 2022. However, it decreased to 7.86 in June 2023 and continued to decline. Unfortunately, data for the subsequent periods is not available.

On the other hand, the total asset turnover ratio indicates how well the company utilizes all its assets to generate sales. Papa John's total asset turnover ratio ranged from 2.08 in December 2020 to 2.54 in September 2022, showing a general upward trend before stabilizing around 2.44-2.52 in the period until June 2024.

Overall, the fixed asset turnover ratios point to fluctuations in the company's efficiency in generating sales from its fixed assets, while the total asset turnover ratio shows an overall improvement in utilizing all assets to generate revenue, indicating increased efficiency in asset utilization over the years analyzed.