Ratio Analysis of Domino's Pizza Essay

5065 Words Apr 28th, 2012 21 Pages
| 2009 – 2010 | | Masters in Business Administration |By- Tesar Singh Chauhan

[DOMINO’s PIZZA UK & IRL FINANCIAL PERFORMANCE ANALYSIS] | Submitted as a part of module assessment for Accounting and Control |

CONTENTS: Page Number 1. INTRODUCTION 2
1.1 DOMINO’s at LONDON STOCK EXCHANGE
And Trading Information 2

2. FINANCIAL RATIO ANALYSIS ON DOMINO’s
PIZZA UK & IRL PLC’s PERFORMANCE 3

3.1 PROFITABILITY RATIOS 3-4 3.2 LIQUIDITY RATIOS 5-6 3.3 EFFICIENCY RATIOS 7-8 3.4 GEARING RATIOS 9-10 3.5 EMPLOYEE RATIOS 11 3.6 INVESTORS RATIOS 12-14

3. CONCLUSION 15

4. BIBLIOGRAPHY

APPENDIX A – Balance
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* This increase is mainly because of the 26.74% increment in PBIT but the assets went up only by 21.66%. * According to McLaney and Atrill (2008), since the increase in PBIT is greater than the increase in total assets, it means that the company is using its assets effectively. * In case of other competitors, Pizza Hut’s ROTA8.3%, Domino’s is getting almost more than triple return on its assets which shows that it is faring well.(http://www.yum.com/investors/income_statement.asp)

Profit Margin: -This ratio relates the operating profit to the sales value (Walker, 2009). It tells us the amount of net profit per pound of turnover a business has earned.

Ratio | Formula | 2010(£000) | 2009(£000) | Profit Margin | Profit before interest and tax x100 | 38035 x 100 | 30008 x100 | | Sales | 188634 | 155044 | | | =20.16% | =19.35% |

Interpretation: * DOM improves the key matric of the total profit it earns per pound of its total sales. They earned 19.3 pence per pound spent by customers in FY2009 but in FY2010 they

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