1

DECLARATION
I, Nirnay Jain hereby declare that the project work entitled “A
STUDY TO FIND OUT THE FINANCIAL ANALYSIS OF THE
DOMINO’S PIZZA” is a record of independent project work carried
out by me under the supervision and guidance of ---------------------
---The information and data given in the report is authentic to the
best of my knowledge. The report has not been previously
submitted for the award of any Degree, Diploma, Associateship or
other similar title of any other university or institute.

31/05/2023 NIRNAY JAIN

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 ACKNOWLEDGEMENT

I would like to express my deepest gratitude to all those who have

contributed to the success of this project. Without their support,
guidance, and assistance, this project would not have been
possible.
First and foremost, I would like to thank my teacher, for their
valuable insights, constant encouragement, and guidance
throughout the entire project. Their expertise and constructive
feedback have been invaluable in shaping the direction and
quality of this work.
Furthermore, I would like to acknowledge the contributions of
Jagan Institute of Management Study for their support.
I am also indebted to my friends and family for their unwavering
support, encouragement, and understanding throughout the
duration of this project. Their words of encouragement and belief
in my abilities have been a constant source of motivation.
Lastly, I would like to extend my appreciation to all the authors,
researchers, and scholars whose works and publications have
been instrumental in shaping the theoretical framework of this
project.
Once again, thank you to everyone who has played a role in the
successful completion of this project. Your support and assistance
have been invaluable, and I am truly grateful for your
contributions.

NIRNAY JAIN

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TABLE OF CONTENT

CHAPTER CONTENT PAGE

NO. NO.
CHAPTER-1 INTRODUCTION 5

CHAPTER-2 REVIEW OF LITERATURE 16

CHAPTER-3 INDUSTRY AND 19

COMPANY PROFILE

CHAPTER-4 DATA ANALYSIS AND 30

INTERPRETATION

CHAPTER-5 FINDINGS, 40
SUGGESTIONS &
CONCLUSION
BIBLOGRAPHY
ANNEXURE

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 CHAPTER- 1
INTRODUCTION

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1.1 INTRODUCTION
Financial analysis and statements are essential tools for evaluating the
financial health and performance of a company. They provide valuable
insights into a company's profitability, liquidity, solvency, and overall
financial position. Here are some key components and aspects of financial
analysis and statements:

1. Financial Statements: The main financial statements include the

balance sheet, income statement, and cash flow statement. These
statements provide a snapshot of a company's financial performance and
position over a specific period. The balance sheet shows the company's
assets, liabilities, and shareholders' equity at a given point in time. The
income statement presents revenues, expenses, and net income or loss over
a period. The cash flow statement details the inflows and outflows of cash
from operating, investing, and financing activities.
2. Ratio Analysis: Financial ratios are used to analysis the relationship
between different items on the financial statements. Common ratios include
profitability ratios (e.g., gross profit margin, net profit margin), liquidity
ratios (e.g., current ratio, quick ratio), solvency ratios (e.g., debt-to-equity
ratio, interest coverage ratio), and efficiency ratios (e.g., inventory turnover,
accounts receivable turnover). These ratios help assess a company's
financial performance, efficiency, and ability to meet its obligations.
3. Trend Analysis: Examining financial data over multiple periods helps
identify trends and patterns in a company's performance. Comparing
financial statements from different years can highlight changes in revenue,
expenses, profitability, and other key metrics. Trend analysis allows for a
more comprehensive understanding of a company's financial trajectory and

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 can help identify areas of strength or areas that require attention.
4. Financial Forecasting: Financial analysis can also involve forecasting
future financial performance. This includes projecting revenues, expenses,
and cash flows based on historical data, market trends, and business
strategies. Financial forecasting helps in budgeting, strategic planning, and
evaluating the potential impact of different scenarios on a company's
financial position.
5. Industry and Peer Analysis: Comparing a company's financial
performance to industry benchmarks and its peers provides valuable
context and helps assess its competitiveness. Industry analysis considers
factors such as growth rates, profitability norms, and industry-specific
metrics. Peer analysis enables benchmarking against similar companies in
terms of size, market segment, and business model.
6. Financial Statement Notes and Disclosures: Financial statements are
often accompanied by notes and disclosures that provide additional
information about specific accounting policies, contingencies, and risks.
These notes clarify the basis of financial reporting and provide important
context for interpreting the financial statements.

1.1 FINANCIAL REPORTS

• Financial reports are formal documents that provide a comprehensive

overview of a company's financial performance and position. These reports
are prepared regular basis, such as quarterly or annually, and follow and
published by the company to communicate its financial information to
various stakeholders, such as investors, creditors, regulators, and

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 management. Financial reports are typically prepared on a established
accounting standards and regulations.

The main types of financial reports include:

1. Balance Sheet: Also known as the statement of financial position, the

balance sheet provides a snapshot of a company's assets, liabilities, and
shareholders' equity at a specific point in time. It shows what the company
owns (assets), what it owes (liabilities), and the residual value for
shareholders (equity).

2. Income Statement: The income statement, also called the statement of

profit and loss or statement of operations, presents a summary of a
company's revenues, expenses, and net income or loss over a specific
period. It showcases the company's ability to generate profits from its core
operations.

3. Cash Flow Statement: The cash flow statement tracks the inflows and
outflows of cash from a company's operating, investing, and financing
activities over a specific period. It provides insights into the company's cash
generation, liquidity, and cash management.

• Financial reports are crucial for stakeholders to assess a company's

financial performance, make investment decisions, evaluate
creditworthiness, and understand the overall financial health and stability
of the organization. They also play a vital role in regulatory compliance and
providing transparency and accountability to shareholders and the general
public.

For financial analysis, ratio analysis is the widely used tool. Usually financial
ratios are said to be the parameters of the financial performance. The
evaluation of financial performance had been taken up for the study with “

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 DOMINOS PIZZA INC.” as the project. Analysis of financial
performance is of greater assistance in locating the weak spots at the
“DOMINOS PIZZA INC.” even though the overall performance may be
satisfactory.

1.2 RATIO ANALYSIS

Ratio analysis can be defined as the process of ascertaining the financial

ratios that are used for indicating the on-going financial performance of a
company using different types of ratios such as liquidity, profitability,
activity, debt, market, solvency, efficiency, and coverage ratios and few
examples of such ratios are return on equity ratio, dividend pay-out ratio,
debt equity ratio, and so on.

Ratio analysis is a process used for the calculation of financial ratios or in

other words, for the purpose of evaluating the financial wellbeing of a
company. The values used for the calculation of financial ratios of a
company are extracted from the financial statement of that same company.
Ratio analysis lays the framework for financial analysis.

Ratio analysis is also used by the readers of the financial statements for
gaining a better understanding of the wellbeing of a company. A few basic
types of ratios used in ratio analysis are profitability ratios, debt or leverage
ratios, activity ratios or efficiency ratios, liquidity ratios, solvency ratios,
earnings ratios, turnover ratios and market ratios.

TYPES OF RATIO ANALYSIS: -

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1. Liquidity Ratio: - The liquidity ratio is a financial metric that measures a
company's ability to meet its short-term financial obligations. It assesses
the company's ability to convert its assets into cash quickly to cover its
current liabilities.
There are two commonly used liquidity ratios:
Current Ratio: The current ratio is calculated by dividing the company's
current assets by its current liabilities. A higher current ratio indicates a
better liquidity position.
Current Ratio = Current Assets / Current Liabilities

Quick Ratio (or Acid-Test Ratio): The quick ratio is a more stringent measure
of liquidity as it excludes inventory from current assets. Inventory may not
be easily converted into cash in the short term, so excluding it provides a
more conservative assessment of a company's ability to meet its immediate
obligations.
Quick Ratio = (Current Assets - Inventory) / Current Liabilities
Both ratios provide insight into a company's ability to meet short-term
obligations.

2. Turnover Ratio: - Activity or turnover ratios, also known as asset

management ratios or efficiency ratios, are financial metrics that measure a
company's ability to generate sales or efficiently utilize its assets. These
ratios help assess how effectively a company is using its resources to
generate revenue and manage its operations. Here are some commonly
used activity ratios:

Inventory Turnover Ratio: This ratio measures how efficiently a company

manages its inventory by assessing the number of times inventory is sold
and replaced during a specific period.

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 Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory
Trade Receivable Turnover Ratio: The trade receivable turnover ratio, also
known as the accounts receivable turnover ratio or debtor's turnover ratio,
is a financial metric that measures how efficiently a company collects
payment from its customers for credit sales. It provides insight into the
effectiveness of a company's credit and collection policies.
Trade Receivable Turnover Ratio = Net Credit Sales / Average Accounts
Receivable
Trade Payables Turnover Ratio: The trade payable turnover ratio, also
known as the accounts payable turnover ratio or creditor's turnover ratio,
is a financial metric that measures how efficiently a company pays its
suppliers for goods and services received on credit. It provides insight into
the company's payment practices and its relationship with its suppliers.
Trade Payable Turnover Ratio = Net Credit Purchases / Average Accounts
Payable

3. Solvency Ratio: - The solvency ratio is a financial metric that measures a

company's ability to meet its long-term debt obligations. It assesses the
company's financial leverage and the proportion of its assets that are
financed by debt. The solvency ratio provides insights into the company's
long-term financial health and its ability to sustain its operations in the
long run.
Debt-to-Equity Ratio: The debt-to-equity ratio compares a company's total
debt to its shareholders' equity. It indicates the proportion of debt relative
to equity financing in a company's capital structure.
Debt-to-Equity Ratio = Total Debt / Shareholders' Equity
The total asset to debt ratio: The total asset to debt ratio, also known as the
total assets to total debt ratio, is a financial metric that measures the

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 proportion of a company's total assets that are financed by debt. It provides
insight into the company's overall leverage and the extent to which its
assets are funded by debt.
Total Asset to Debt Ratio = Total Assets / Total Debt
The proprietary ratio: The proprietary ratio, also known as the equity ratio
or net worth ratio, is a financial metric that measures the proportion of a
company's total assets that is financed by shareholders' equity.
Proprietary Ratio = Shareholders' Equity / Total Assets

4. Profitability ratios:- Profitability ratios are financial metrics that measure

a company's ability to generate profits relative to its expenses, assets, or
equity. These ratios provide insights into a company's overall financial
performance and its ability to generate returns for its shareholders.
Gross Profit Ratio: This ratio measures the profitability of a company's core
operations by calculating the percentage of revenue that remains after
deducting the cost of goods sold (COGS). It is calculated as follows:
Gross Profit Margin = (Revenue - COGS) / Revenue
A higher gross profit margin indicates better profitability, as the company
retains a larger portion of each dollar of revenue.

Net Profit Ratio: This ratio indicates the overall profitability of a company,
considering all expenses, including COGS, operating expenses, interest, and
taxes. It is calculated as follows:

Net Profit Margin = Net Income / Revenue

Operating Ratio: -A higher net profit margin signifies greater

profitability, as the company retains a larger percentage of revenue as net
income the operating ratio is a financial metric that measures the efficiency

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 of a company's operations by comparing its operating expenses to its net
sales revenue. The operating ratio is typically expressed as a percentage.

Operating Ratio = (Operating Expenses / Net Sales) x 100

Return on Investment: - It is a financial metric that measures the

profitability or efficiency of an investment by comparing the return
generated to the cost of the investment. ROI is often expressed as a
percentage or a ratio.

ROI = (Net Profit / Cost of Investment) x 100

1.3 OBJECTIVES OF THE STUDY

Analyzing financial performance is the process of evaluating the common

parts of financial statements to obtain a better understanding of firm’s
position and performance. Financial performance analysis helps to evaluate
past and current performance and financial position, and to predict future
performance.
The problem identified for the study is to find out the profitability position
of Domino’s Pizza Inc. The main motto of the company is to make maximum
profit and profit is essential for expansion, diversification, and activities
and for making their future operations, manages their funds efficiently and
effectively and utilizes their work force at maximum in order to attain a
maximum profit to survive in the present competitive world.

1.4 SIGNIFICANCE OF THE STUDY

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 This study is conducted to analysis the financial performance of the
“DOMINOS PIZZA INC.” The financial authorities can use this for evaluating
their performance which helps to analysis financial statements and help to
apply the resources of the company properly for the development of the
company. This study can be used to evaluate the financial performance of
“DOMINOS PIZZA INC.”

1.5 RESEARCH DESIGN

The research design is an important component of dissertation or thesis

proposal. A research design is the set of methods and procedures used in
collecting and analyzing measures of the variables specified in the problem
research. A research design is a framework that has been created to find
answers to research questions. It constitutes the blueprint for the collection,
measurement, and analysis of data. It provides insights about “how” to
conduct research using a particular methodology. Every research has a list of
research questions which need to be assessed which can be done with
research design.

Here are some key components typically included in a research design:

1. Research question or objective: Clearly define the research problem or
question that the study aims to address. This helps focus the research and
guide the design process.
2. Research approach: Determine the overall approach or strategy to be used
in the study. Common research approaches include experimental,
correlational, qualitative, or mixed methods.
3. Data collection methods: Identify the methods and tools that will be used
to collect data. This could involve surveys, interviews, observations,
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 experiments, or existing datasets, depending on the research question and
approach.
4. Sampling: Define the target population and the method of selecting
participants or data sources. Sampling techniques may include random
sampling, stratified sampling, convenience sampling, or purposive sampling.
5. Variables and measures: Clearly define the key variables of interest in the
study and identify the measures or instruments that will be used to collect
data on these variables.

1.6 NATURE AND SOURCES OF DATA

The study is mainly based on secondary data.

Secondary data involves company’s records and company’s balance sheet in
which the project work has been done. Along with company records and
balance sheet many other reference books, websites, reports etc. have been
used.

1.7 PERIOD OF STUDY

The period of study is 3 years from the financial year 2019-2020 to 2021-
2022.

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CHAPTER-2

REVIEW OF

LITERATURE

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2.1 CONCEPTUAL REVIEW

Conceptual literature deals with concepts and theories. Empirical literature

deals with studies made earlier. It contains facts and observations. Review
of literature is an important part of study. It contains information which is
practically as well as theoretically important.

2.2 EMPIRICAL LITERATURE

Kinnary Thakkar and Mrunmayee R. Thatte (2014) in the investigation

endeavored to think about the buyer recognition of two very important
food establishment KFC and McDonalds. The necessary information for the
study was gathered through a survey from 150 respondents in Thane city.
Different fundamentals like variety of food items were considered to look at
buyer insight in relation to the company. The examination uncovered that
cost influence the recurrence of visits.

Vanishree, M, and Shanti L (2013) opined about the client mindfulness and
fulfilment in QSR KFC. French SA et al, (2001) called attention to that
meeting drive thru food eatery is to put in energy with members of the
family and companions.

R Gilbert, C Veloutsou, M Goode, (2004) have considered on approximating

purchaser reliability in QSR. The study gives a diverse relationship of
management fulfilment of low-quality food establishments in four English-
talking nations. IT relies upon data assembled from customers of five
generally expanded low quality foods chains.

A law, Y Hui, X Zhao (2004) have examined the connections between client
fulfilments repurchase recurrence waiting time and further administrations
quality factors in junk food outlets are demonstrated. The outcome
demonstrates that consumer loyalty is altogether influenced by waiting

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time, state of mind of employees and food variety and the quality of food
served.

Schlosser E. (2001) brought up the most much of the time proclaimed the
idea of eating at junk food eateries were the immediate service of food.

Laroche and Parsa (2000) opined that the reason behind individuals to
choose to pick junk food restaurant is the taste and incline towards
moment fulfilment of their taste buds. Quick service restaurants include a
wide diversity of prompt and immediate service brands and take just brief
period to serve it.

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 CHAPTER-3
INDUSTRY PROFILE

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 3.1 INDUSTRY PROFILE

• Domino's Pizza, officially known as Domino's Pizza Inc., is a global pizza

delivery and carryout chain headquartered in Ann Arbor, Michigan, United
States.

• Domino's Pizza is known for its focus on delivery and takeout services,
offering a wide variety of pizzas, as well as side dishes such as chicken
wings, pasta, breadsticks, and desserts. Over the years, the company has
expanded its menu to cater to different tastes and dietary preferences,
including vegetarian and gluten-free options.

• Domino's operates through a franchise model, with both company-owned

and franchised stores across the globe. It has a significant international
presence, with operations in more than 90 countries, making it one of the
largest pizza chains in the world. The company has continually expanded its
reach, opened new stores and adapted to local markets through regional
menu offerings and marketing strategies.

• In addition to its focus on convenient delivery services, Domino's has made

significant technological advancements to enhance the customer
experience. The company introduced online ordering in 2007, followed by
the development of mobile apps, allowing customers to place orders
through various digital platforms. These innovations have contributed to
the company's growth and success in the highly competitive fast-food
industry.

• Dominos has also gained attention for its commitment to improving the
quality of its products and customer satisfaction. In 2009, the company
launched its "Pizza Turnaround" campaign, acknowledging criticism of its

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 pizza quality and initiating a comprehensive reinvention of its core pizza
recipe. This rebranding effort was accompanied by an emphasis on
transparency, feedback, and continuous improvement.

• Overall, Domino's Pizza has established itself as a prominent player in the

global food industry, known for its focus on delivery, technological
innovations, and efforts to meet customer expectations. The company
continues to evolve and adapt to changing consumer preferences,
maintaining its position as one of the leading pizza chains worldwide.

4.2 INDIAN SCENARIO

In India, Domino's Pizza has experienced significant growth and has

become one of the most popular pizza chains in the country. The brand
entered the Indian market in 1996 and has since expanded its presence
with a large number of stores across various cities and towns.

Here are some key aspects of the Indian scenario for Domino's Pizza:
1. Market Presence: Domino's Pizza has established a strong presence in the
Indian market, with over 1,300 stores spread across more than 280 cities as
of my knowledge cutoff in September 2021. The brand's wide network of

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 outlets enables it to serve a large customer base, including urban areas,
suburban neighborhoods, and smaller towns.
2. Menu Adaptation: Domino's has tailored its menu to cater to Indian tastes
and preferences. In addition to traditional pizzas, the Indian menu features
localized options with flavors and toppings that resonate with Indian
consumers. For example, vegetarian pizzas are popular, with a range of
vegetable toppings and variations to suit local preferences.
3. Delivery and Takeout Focus: Domino's in India places a strong emphasis
on delivery and takeout services, reflecting the convenience-oriented
dining habits of Indian consumers. The brand has invested in efficient
delivery systems, including a robust logistics network, to ensure prompt
and reliable pizza deliveries.
4. Competitive Landscape: The Indian food and beverage market is highly
competitive, with several domestic and international players vying for
market share. Dominos competes with other pizza chains as well as local
eateries offering similar fast-food options. To stay competitive, Domino's
has employed strategies such as affordable pricing, attractive deals and
promotions, and innovative marketing campaigns.
5. Technological Integration: Domino's has embraced technological
advancements to enhance the customer experience in India. Online
ordering through the official website and mobile app has gained popularity,
allowing customers to conveniently place orders, customize pizzas, and
track deliveries. The company has also introduced features like GPS
tracking and real-time updates to provide transparency and improve
customer satisfaction.
6. Community Initiatives: Domino's in India has undertaken various
community-centric initiatives to establish a positive brand image and
contribute to society. These initiatives include partnerships with non-profit

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 organizations, supporting education and skill development programs, and
promoting responsible consumption and waste management practices.
• It's important to note that the Indian market is diverse, with variations in
consumer preferences and dining habits across different regions. Therefore,
Domino's Pizza has tailored its strategies to accommodate regional
differences while maintaining a consistent brand identity and customer
experience throughout the country.
4.3 COMPETITORS

• Domino's Pizza faces competition from various players in the fast food and
pizza industry. The specific competitors may vary depending on the region,
but here are some prominent competitors that Domino's Pizza often
encounters:
1. Pizza Hut: Pizza Hut is one of the largest and most well-known pizza
chains globally. It offers a wide range of pizzas, pasta, and other side dishes.
Pizza Hut is known for its casual dine-in restaurants, delivery, and takeout
services.

2. Papa John's: Papa John's is another major pizza chain that competes with
Domino's Pizza. It focuses on high-quality ingredients and has a strong
delivery and carryout model. Papa John's offers a variety of specialty pizzas,
sides, and desserts.
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3. Subway: Subway, known for its customizable sandwiches and salads, also
competes indirectly with Domino's Pizza. As both chains target customers
seeking quick and convenient dining options, they compete for a share of
the fast-food market.

4. La Pino’z: La Pino'z is a popular pizza chain in India known for its

delicious and innovative pizza offerings. It was founded in 2011 in New
Delhi and has since expanded to various cities across the country. La Pino'z
offers a wide range of pizzas with a unique blend of flavors, toppings, and
sauces.

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5. Local and Regional Pizza Chains: In addition to larger international
chains, Domino's Pizza faces competition from various local and regional
pizza chains. These establishments may have loyal customer bases and
cater to specific tastes and preferences within their respective markets.

6. Independent Pizzerias and Local Eateries: Independent pizzerias,

smaller local eateries, and mom-and-pop shops often compete with
Domino's Pizza at a local level. These establishments may have loyal
customer followings, unique offerings, and a focus on personalized
customer service.
• It's worth noting that competition within the fast food and pizza industry is
dynamic, with new players entering the market and consumer preferences

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 evolving over time. Each competitor may have its own unique selling points,
marketing strategies, and target audience. Domino's Pizza and its
competitors continually strive to differentiate themselves through factors
such as pricing, quality, taste, menu variety, delivery efficiency, customer
experience, and promotional campaigns to attract and retain customers in a
competitive market landscape.

4.4 MISSION AND VISSION OF THE COMPANY

Vision Statement of Domino's Pizza:

"To be the number one pizza company in the world and in every
neighborhood."

Mission Statement of Domino's Pizza:

"Exceptional franchisees and team members on a mission to be the best
pizza delivery company in the world."
Domino's Pizza's vision statement reflects its ambition to become the
leading pizza company globally and be recognized as such in every
neighborhood. This indicates the company's desire to achieve a dominant

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 market position and be the preferred choice for customers seeking pizza
delivery.
The mission statement highlights the importance of franchisees and team
members in achieving Domino's Pizza's goals. It emphasizes the company's
commitment to excellence and its aspiration to be the best pizza delivery
company worldwide. This mission statement reinforces the significance of
teamwork, customer satisfaction, and continuous improvement in driving
the company's success.
Both the vision and mission statements of Domino's Pizza reflect the
company's focus on growth, market leadership, customer satisfaction, and
the involvement of its franchisees and employees in realizing its objectives.
These statements provide a strategic direction and serve as a guiding
framework for decision-making and goal-setting within the organization

4.5 SWOT ANALYSIS

4.5.1 STRENGHTS
Strong brand
Quick Delivery
Excellent Offers
4.5.2 OPPORTUNITIES
Bigger outlets
Take Away Counters
Introduce more varities
4.5.3 WEAKNESS
Pizza Sales Only
High Calories
Limited to city

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4.5.4 THREATS
Better quality and variety of competition
Emergence of lots of competitors
4.6 PRODUCTS OF THE COMPANY
• Domino's Pizza offers a wide range of products, primarily focusing on pizza
but also including various side dishes and desserts. Here are some of the
key products offered by the company:
1. Pizzas: Domino's is renowned for its diverse selection of pizzas. The menu
includes a variety of crust options, such as hand-tossed, thin-crust, and pan
pizza. Customers can choose from a range of classic and specialty pizzas,
including vegetarian and non-vegetarian options, with various toppings
and flavor combinations.
2. Side Dishes: In addition to pizzas, Domino's offers an assortment of side
dishes to complement the meal. These may include items such as chicken
wings, breadsticks, cheesy bread, garlic bread, stuffed cheesy bread, and
potato wedges. Side dishes provide additional options for customers to
customize their orders or enjoy as standalone snacks.
3. Pasta: Domino's offers a selection of pasta dishes for those seeking a
different kind of Italian cuisine. These pasta options typically include
classics like pasta carbonara, chicken alfredo, and chicken penne.
4. Sandwiches: Some Domino's locations also provide a range of sandwiches,
such as chicken parm, Italian, and Philly cheese steak. These sandwiches
offer an alternative choice for customers looking for a quick and satisfying
meal.
5. Desserts: Domino's offers various dessert options to round off a meal. This
may include chocolate lava cakes, cinnamon bread twists, and cookie
brownies. These sweet treats provide a indulgent finish to a Domino's Pizza
order.

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 • It's important to note that the specific menu offerings may vary by country
or region, as Domino's often tailors its menu to suit local tastes and
preferences. Additionally, the company periodically introduces limited-time
promotional items or special menu additions to provide variety and cater to
changing customer preferences.
• Customers can typically customize their orders by choosing different
toppings, sauces, and crust options to suit their individual preferences. The
menu options at Domino's Pizza are designed to offer a range of choices to
satisfy different tastes and accommodate various dietary requirements.

4.7 COMPANY DETAILS

o FOUNDED: - United States (10June,1960)

o AREA SERVED: - Worldwide

o KEY PEOPLE: - Tom Monaghan (Founder)

o PRODUCTS: - Pizza, Breadsticks, Pasta

o REVENUE: - $436 Crore USD Dollar

o EMPLOYEES: - 1,45,000

o WEBSITE: - www.dominos.com

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 CHAPTER-4
DATA ANALYSIS AND
INTERPRETATION

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4.1 LIQUIDITY RATIO

4.1.1. CURRENT RATIO

CURRENT RATIO= CURRENT ASSETS /CURRENT LIABILITIES

YEAR CURRENT CURRENT RATIO

ASSETS LIABILITIES
2022 790.654 536.621 1.47
2021 860.54 590.741 1.45
2020 869.384 470.819 1.84

Generally current ratio of 2:1 is considered as standard. Current assets

double current liabilities are considered to be satisfactory. From the above
table the current ratio of the company reveals that during 2019-2020 it
showed closed to satisfactory level that is 1.84. But during 2020-2021 and
2021-2022 it reveals less than standard current ratio.

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4.1.2LIQUIDITY RATIO

LIQUIDITY RATIO = LIQUID ASSET / CURRENT LIABILITY

YEAR LIQUID ASETS CURRENT RATIO

LIABILITY
2022 509.137 536.621 0.94
2021 584.066 590.741 0.98
2020 630.834 470.819 1.34

It is the relationship between absolute liquid asset and current liabilities. If

the ratio is more than 1 it means there is enough fund in form of cash to
meet the liabilities. In 2019-20, the ratio is more than 1 which means cash
management of the company is efficient. In the year 2020-21 and 2021-22
ratio is declined to 0.98 and later to 0.94

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4.2 ACTIVITY RATIO

4.2.1 FIXED ASSET TURNOVER RATIO

Fixed asset turnover ratio= Net sales / net fixed assets

YEAR NET SALES NET FIXED RATIO

ASSETS
2022 4537 302.235 15.011
2021 4357 324.065 13.44
2020 4117 297.364 13.98

Fixed asset turnover ratio measures the efficiency with which the firm has
been using its fixed asset to generate sales. Generally Fixed Asset turnover
ratio of 4 times is considered as satisfactory. Here these values are Above
the standard. In the year 2019-20 it was 13.98 and in 2020-21 it was 13.44
later It climbed up to 15.011 in the year 2021-22.

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 4.2.2 WORKING CAPITAL TURNOVER RATIO

Working capital turnover ratio= net sales/working capital

YEAR NET SALES WORKING RATIO

CAPITAL
2022 4537 283.4 16.09

2021 4357 214.4 20.32

2020 4117 268.5 15.33

Generally, a working capital turnover ratio is 7 or 8 times is considered as

ideal. Here working capital turnover ratio was obtained by the company in
the year 2019-20 which was 15.33, in the year 2020-21 it was 20.32 then it
declines to 16.09 in the year 2021-22.

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4.2.3 TOTAL ASSET TURNOVER RATIO

Total asset turnover ratio= Net sales/total assets

YEAR NET SALES TOTAL ASSETS RATIO

2022 4537 1602.221 2.83

2021 4357 1671.816 2.60

2020 4117 1567.168 2.62

Total asset turnover ratio means how efficiently a firm uses its goods to
generate sales. In the year 2019-20 it was 2.62. In the next year 2020-21 it
Decreased to 2.60. The ratio gets fluctuated in the year 2021-22 the ratio is
increased to 2.83.

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4.2.4 CURRENT ASSET TURNOVER RATIO

Current asset turnover ratio= net sales / current assets

YEAR NET SALES CURRENT RATIO

ASSETS
2022 4537 790.654 5.73

2021 4357 860.54 5.06

2020 4117 869.384 4.73

Current asset turnover ratio shows how well the current asset of the
company is utilized. The current asset turnover ratio is 4.73 in the year
2019-20 which is Lowest ratio among the all 3years. Then we can see that
the ratios increase to 5.06 in the year 2020-21. The ratio from 2021-22 is
5.73 which is highest among all the 3 years .

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4.2.5 STOCK TURNOVER RATIO

Stock turnover ratio= Net Sales / Inventory

YEAR NET SALES INVENTORY RATIO

2022 4537 81.57 55.62

2021 4357 68.32 63.77

2020 4117 66.68 61.74

Stock turnover ratio measures how efficiently a company can control its
merchandise. Generally, ratio of 8 times is considered as satisfactory. In the
present study the stock turnover ratio shows that in 2020 it was 61.74 and
then in 2021 it rises to 63.77 and then falls to 55.62

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4.3 PROFITABILITY RATIO

4.3.1 NET PROFIT RATIO

Net profit ratio= net profit/total revenue *100

YEAR NET PROFIT TOTAL REVENUE RATIO

2022 452 4537 9.96

2021 510 4357 11.70

2020 491 4117 8.38

Net profit ratio shows how effectively cost control strategies are
implemented by the management. Net profit ratio is at 8.38 in the year
2019-20 and for the next two years the net profit shows a increasing trend
that is 11.70 and 9.96 for the year 2020-21 and 2021-22 respectively.

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4.3.2 RETURN ON INVESTMENT

Return on investment= profit before interest and tax *100

Capital employed

YEAR PROFIT BEFORE CAPITAL RATIO

INTEREST AND EMPLOYEED
TAX
2022 573 1065.56 53.77

2021 626 1081.07 57.90

2020 555 1096.34 50.62

Net profit ratio shows how effectively cost control strategies are
implemented by the management.Net profit ratio is at 50.62 in the year
2019-20 and for the next two years the net profit shows a increasing trend
that is 57.90 and 53.77 in the year 2020-21 and 2021-22 respectively.

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 CHAPTER-5
FINDINGS,
SUGGESTIONS &
CONCLUSION

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5.1 FINDINGS
• Current assets double current liabilities are considered to be
satisfactory. In year 2020 the ratio is close to but it is not 2 and in
the year 2021 and 2022 it reveals less than standard current ratio.
• Liquidity ratio is satisfactory in the year 2020 which is more than
1 that is 1.34 but in the year 2021 and 2022 the ratio is less than 1.
It means that in the year 2020 it can be said that company has
enough fund in form of cash to meet the liabilities.
• A higher fixed asset turnover ratio shows how efficiently a firm
uses its fixed assets to generate sales. But here, ratio is above the
standard in all of the years 2020, 2021 and 2022 which are 13.98,
13.44 and 15.01 respectively.
• Working capital turnover ratio of the company is very good.
Working capital turnover ratio shows a value which is below the
standard in every financial year.
• A higher total asset turnover ratio is favourable, as it indicates a
more efficient use of assets. Here the ratio gets fluctuated.
• Current asset turnover ratio gets fluctuated year by year. It shows
a mixed growth.
• Stock turnover ratio measures how efficiently a company can
control its merchandise. Generally, ratio of 8 times is considered as
satisfactory. In the present study the stock turnover ratio shows a
fluctuating rate. In all the years it is more than 8 times.
• Net profit ratio is effective in the year 2020 it was 8.38 and in next
year it increases and finally in 2022 it decreases.
• Return on investment is very high.

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5.2 SUGGESTIONS
• The company have to improve their short-term financial position.
• It is advisable to take more efforts to increase the overall efficiency of
the business
• . • They should have good systematic plan on utilization of the
resources provided to them and should use its available resources to
its best
• Company must try to use working capital effectively for generating
sales and increasing activity ratio.

5.3 CONCLUSION
Domino’s pizza inc. is one of the growing companies in India.

The company shows a fluctuating trend in its financial position over the
years.

A steady increase can be seen and also it never moves to a loss-making

situation.

The company is trying to improve their performance and has reached in

its fullest.

More effort should be given to maintain the smooth functioning of the

company.

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BIBLOGRAPHY

43
 Bibliography
A. Books
Mittal and Maheshwari,
Cost Management Accounting
Ts Grewal
J.K Thakral
DK Gupta

B. Websites
https://in.investing.com
https://ir.dominos.com
https://www.scribd.com
https://en.wikipedia.org
https://biz.dominos.com

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ANNEXURE

45
DOMINO’S PIZZA BALANCE SHEET

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DOMINO’S PIZZA BALANCE SHEET

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48