As a senior investment analyst, you have been asked to comment and provide your reasons on the ratio performance of Dominos Pizza shown below. Indicate what key ratios raise any concerns and/or whether you think performance is sufficient over time and given the Fast Food/Restaurant industry.

Company: Domino's Pizza Enterprises Limited Dupont Model Year 06/14 06/15 06/16 06/17 Year 06/15 06/16 Year 06/15 06/16 06/14 06/17 06/14 06/17 Year 06/15 06/16 06/14 06/17 Current Ratio = Current Assets/Current Liabs. 0.9 0.9 0.7 0.8 Quick Ratio 0.8 0.8 0.6 0.7 Interest Cover = EBIT/Interest Expense 29.6 40.6 42.6 40.8 Operating Cash Flow Current Liab. 0.8 0.8 0.5 0.6 Net Profit Margin 9.7% 9.2% Gross Margin= (Sales-Cost of Goods Sold) /sales 63.5% 62.9% 62.0% 55.2% 7.7% 9.7% Other Leakages/Profit % 57.5% 27.7% 53.5% 70.9% Operating Profit Margin = EBIT/Sales 12.3% 14.1% 15.0% 16.7% 7.0% LIQUIDITY 10% =100/1000 Return on Shareholders' Funds (ROE) 17.5% 22.4% 21.9% 25.5% Return on Assets = EBIT/Assets 13.0% 15.8% 12.5% 16.04% 0.1604247 LEVERAGE Total Asset Turnover =Sales Assets 1.1 1.1 0.8 0.96 51.6% Tax Expense 24.23% 24.91% Debt Ratio (TLITA) 53.6% 65.0% 63.4% Total Liabilities / Equity 115.5% 106.7% 185.3% 172.9% Long-Term Debt Total Assets 21.2% 19.5% 25.4% 27.5% 31.28% 27.75% Fixed Asset Turnover=SALES/Fixed Assets 3.8 3.7 2.0 2.2 Inventory Turnover=COGS/Inv 50.5 57.7 56.3 49.7 Days Receivable Outstanding=Sales/Debtors Financing 23.2 24.6 32.6 24.3 Company: Domino's Pizza Enterprises Limited Dupont Model Year 06/14 06/15 06/16 06/17 Year 06/15 06/16 Year 06/15 06/16 06/14 06/17 06/14 06/17 Year 06/15 06/16 06/14 06/17 Current Ratio = Current Assets/Current Liabs. 0.9 0.9 0.7 0.8 Quick Ratio 0.8 0.8 0.6 0.7 Interest Cover = EBIT/Interest Expense 29.6 40.6 42.6 40.8 Operating Cash Flow Current Liab. 0.8 0.8 0.5 0.6 Net Profit Margin 9.7% 9.2% Gross Margin= (Sales-Cost of Goods Sold) /sales 63.5% 62.9% 62.0% 55.2% 7.7% 9.7% Other Leakages/Profit % 57.5% 27.7% 53.5% 70.9% Operating Profit Margin = EBIT/Sales 12.3% 14.1% 15.0% 16.7% 7.0% LIQUIDITY 10% =100/1000 Return on Shareholders' Funds (ROE) 17.5% 22.4% 21.9% 25.5% Return on Assets = EBIT/Assets 13.0% 15.8% 12.5% 16.04% 0.1604247 LEVERAGE Total Asset Turnover =Sales Assets 1.1 1.1 0.8 0.96 51.6% Tax Expense 24.23% 24.91% Debt Ratio (TLITA) 53.6% 65.0% 63.4% Total Liabilities / Equity 115.5% 106.7% 185.3% 172.9% Long-Term Debt Total Assets 21.2% 19.5% 25.4% 27.5% 31.28% 27.75% Fixed Asset Turnover=SALES/Fixed Assets 3.8 3.7 2.0 2.2 Inventory Turnover=COGS/Inv 50.5 57.7 56.3 49.7 Days Receivable Outstanding=Sales/Debtors Financing 23.2 24.6 32.6 24.3