Figure 2: Current Assets of Domino's Pizza Liability (source: http://marketrealist.com/2015/03/dominos-pizza-serving-1-5-million-pies-day/)
Liability includes two major elements: current liabilities and non-current liabilities. Current liabilities are payments that the company owes to suppliers. These are the obligations that the company must pay within a year. Meanwhile, non-current liabilities define what the company owes in a year or longer time, such as debts from banks and bondholders. The figure below shows the liabilities of Domino's Pizza in the past five years. It is very distinct that the company has a large amount of liabilities relative to assets, which is worth examining with more diligence, especially given that 97% of the restaurants are franchised and there are fewer prospects to expand the company-owned stores.
Analysis section.
The income statement provides investors with insight into how well the company's business is operating and whether the company is earning a decent amount of money. The figure below includes Domino's Pizza's revenue, expenses, and profits during the past five years. Revenue, in other words, sales, is the most straightforward figure in the income statement. The figure shows that Domino's Pizza's revenue has steadily grown during the past five years, signaling strong fundamentals to investors about the business's performance. Although expenses have also grown along with revenue during the past five years, profits still remain strong as Domino's business continues to expand. This income statement provides valuable insights into Domino's Pizza's business. The increasing revenue provides the first sign of strong fundamentals, and the rising margins show increasing profitability, which will be analyzed in the Profitability Analysis section.
This company has been performing well for many years and this this because of their good business model. Everything that was noticed on the income statement was the good performance of company. Their dividends have increased over time; this was due to increased profits. The earnings growth projections for the next four years have increased five percent.
Pepe’s Pizza is a pizza shop owned by Angel Shahrouk opening on the 31st August 2008. The Pizza shop is to provide the community with a range of pizzas and to answer to consumer demands. The main outcome of the pizza shop is to sell pizzas to the community. This report provides an analysis and evaluation of the current and prospective profitability, liquidity and financial stability of Pepe’s Pizza shop. Methods of analysis include trend, horizontal and vertical analyses as well as fixed cost, variable costs end monthly revenue analysis. All calculations can be found in the business plan being presented. Results of data analysed show all aspects of the business. In particular, comparative performance is poor in the areas of profit margins, liquidity, revenue control, Debt control and stock control.
In analyzing the common-size balance sheet for Applebee’s, it is noted that the total current assets has jumped from 11% to 14% of the total assets. The total assets for Applebee’s has jumped 6% from 2000 to 2001 driven by increased in the total current assets of 28%. Of those 28% increase, they consisted of 88% increase in the Cash & Equivalents (increased of $10.6 millions) caused by the decreased in the Capital Stock repurchasing in 2001 by Applebee’s. The repurchase of capital stock has decreased by 31% as noted from the year-to-year percentage changes of the Statement of Cash Flow which equivalent to about $11 million dollars. The other current assets increased was from the other Current Assets category; there was an increase of 92% from 2000 to 2001. Due to the higher earnings for Applebee’s, there was an increase in income tax due. A significant component of the increase of other Current Assets was from increased in prepaid income taxes with net deferred income tax asset of $6.7 millions dollars.
Analyzing the company’s gross profit margin over the last three to five years, not much has changed. In 2010, the gross profit margin reached its height in the fourth quarter, with 41.56%. In 2011, the
Revenue serves as a representation of how much a company is worth in terms of how many products sold or services offered. The revenue recognition principle states that “revenue should be recognized when earned” (Averkamp 2004, online). When revenue is recognized is split over several periods, it can make a company appear to be more profitable, and display a stability in earnings that does not exist. When revenue is recorded as one lump sum at a future period such a recession, it can make companies appear to be profitable during a time when they should not be.
Also the Customers feedback and complaint is an important factor in promotional campaign. the video in this website www.pizzaturnaround.com show customers negative feedback and the impact on the company and joint to the customers on an emotionally way. This stunning success with improving Taste was lead to the point that three out of five people prefer Domino’s to competitors. After starting new product strategy, new customers increased by 30 percent and repeat purchase was up by 65 percent, indicative of excellent customer loyalty. These numbers indicate increasing of 14.3 percent in quarterly same-store sales, even during a U.S. economic
The first analysis will be on Verizon. The current ratio and the debt to equity ratio both improved in 2006 when compared to 2005. However, the net profit margin dropped from 9.8% to 7.0%. What does this tell us as investors...
Domino leaders and employees need to come together and discuss what will be best for the company, and what efforts it will take to resolve the issues at hand. Perhaps they can come up with ways that they can raise their sales, and surpass competing firms revenues. On top of this, it will be necessary for them to spread their name more, make it better known; they need to figure out how to beat out competing firms prices without losing money.
In reviewing the company’s balance sheet, the current assets and liabilities were reviewed and liquidity ratios were calculated. The capital structure and the fixed and intangible asset accounting of the company were also reviewed. Off-balance sheet items such as leases and contingent liabilities were reported and noted. All of these aspects of the balance sheet were reviewed in order to do a proper analysis of the company’s balance sheet.
Total revenue, which is the total amount of income received from the sales of a certain quantity of goods or services. Total revenue can be calculated by multiplying the price of a product times the quantity sold. For instance, if 160 baseball caps are sold and each baseball cap was priced at $5 each, the total revenue would be (160*5) $180.
The purpose of this paper is to provide data and analysis of PepsiCo, Inc. and The Coca-Cola Companies financial statements so that a potential investor can make an educated decision about where to place their money. The paper shows a vertical analysis of each company’s consolidated balance sheet, a horizontal analysis of their consolidated statement of income ratios showing solvency, liquidity and profitability.
For years now Pizza Hut, Inc. has been the leader of the pizza industry. We have been privileged to have had the opportunity to perform research on advancements we can make to maintain this reputation. Based upon our Economic Analysis we have decided to not launch the BIGFOOT pizza. The following gives a detailed analysis, offers alternatives to improving the Pizza Hut experience, and gives reasons why we came to this conclusion.
Domino’s Pizza is a large pizza takeaway and delivery company that offers convenient innovative pizza crusts, toppings and sauces. It is also the market leader in many markets; one is the pasta/pizza restaurant, takeaway and delivery market. The company carries out many social responsibility activities, such as, charity fund raising, environmentally friendly projects and a healthy eating guide. The brand targets individuals and families who are looking for convenience. Domino’s Pizza is focusing on price promotions, investing on digital platforms, fund raising, investing in opening convenient outlets, and the brand image.
Domino’s Pizza is operated internationally through a network of 10,255 company-owned and franchise stores, located in all 50 states and more than 70 international markets (Domino’s Pizza Annual Report 2012). There are three business segments which is domestic stores, domestic supply chain and international. The core operation of this company is delivering pizza. Based on number of units and revenue, they rank second largest pizza company in the world. It carry tagline of ‘you got 30 minutes’ in December 2007 to deliver pizza in that time but it is late they will get free pizza or voucher. Free pizzas not apply to all country (Adamy, 2007).
The current ratio and quick ratios for the year 2003 are at 2.5 and 1.3, which are both higher than the industry average. The company has enough to cover short term bills and expenses. Both the current and quick ratios are showing an upward trend compared to 2001 and 2002. The current assets decreased by $ 20,264 to $ 1,531,181 and the current liabilities also decreased considerably by $255,402 to $616,000, a 29.3% decline, thus making the current ratio jump to a 2.5. The biggest decline was seen is accounts payable which decreased by $170,500 to $230,000, a decline of 42.6 %.