Two brothers purchased DomiNick’s Pizza, an American pizza company, in 1960. Tom and Jim Monaghan initially purchased the company to pay for school. After a year or so, Jim wanted out after having little to no …show more content…
Dominos has a Debt to Equity Ratio of 0.05%, which is very low. This ratio being low is a plus to stockholder’s and potential stockholders. This shows that Dominos is taking on less debt in respect to equity value. The Profit Margin shows how much of a company’s revenue converts into a profit. Dominos Net Profit Margin of 13% is considerably low. The best way to obtain true information about Dominos is to monitor its profit margin of several fiscal years. If their margin starts to increase then they are more efficient at increasing it profits while monitoring its costs (Investopedia, …show more content…
Publicly owned companies are required to periodically publish general-purpose financial statements that include a balance sheet, an income statement, and a statement of cash flow. Understanding the financial side of a business can often times be challenging and complicated. Understanding a company’s accounting system and financial statements can be just as hard. “Four statements are normally prepared by profit-making organizations for use by investors, creditors, and other decision makers. I.e.: balance sheet, income statement, statement of stockholders’ equity, and statement of cash flows (Bethel, 2017).” These reports do not have a period as to when they are to be completed. They can be reported at any