Case Study - Dominos Pizza Enterprise Limited

Working Capital Management

Dominos Working Capital Management assessment based on the following segments:

Develop your working capital management section of the report reflecting the following ratios-based analysis:

a. Calculate short-term borrowing as a percentage of current liabilities for the Year 2017, 2018, 2019, 2020.

b. What are short-term borrowings, and what role do they play in working capital management?

- Calculate for the relevant Year 2017, 2018, 2019, and 2020:

- Current ratios, quick ratios, and working capital ratios (AAI, ACP, and APP) and cash conversion cycles (CCC) and

- Company financing needs to support CCC (resources invested in CCC).

- Assess company performance presenting the working capital management of the company? Justify company strategies (choices). Suggest reasons for which contributes to these results.

Note: Dominos financial data does not provide purchase figures and the cost of goods sold (COGS) figures, but you need to know the cost of goods sold figures for your analysis. Therefore, I decided to derive the COGS figure as (Sales Revenue EBITDA= COGS). For example, 2017 Dominos COGS in Millions = (Sales Revenue $790,861- EBITDA $199,713= COGS/ Purchases =$591,148. So please consider COGS = Purchases.

Please follow the same method to calculate COGS and Purchase figure for 4 years of working capital management analysis.