Figure 2: Current Domino's Pizza Responsibility Activities (source: http://marketrealist.com/2015/03/dominos-pizza-serving-1-5-million-pies- day /) Liabilities include two main elements: current liabilities and non-current liabilities. Current liabilities are the payments the company owes to suppliers. These are the obligations that the company will have to pay within a year. Meanwhile, non-current liabilities define what the company owes in a year or more, such as debts to banks and bondholders. The figure below shows Domino's Pizza's liabilities over the past five years. It is evident that the company has a large amount of liabilities relative to assets, which is worth examining with more diligence, especially considering that 97% of restaurants are franchised and there is less prospect of expanding company-owned stores.Analysis Section . The income statement provides investors with information about how the company's business is operating and whether the company is making a decent amount of money. The figure below includes Domino's Pizza's revenue, expenses and profits over the past five years. Revenue, in other words, sales, is the simplest figure on the income statement. The figure shows that Domino's Pizza's revenue has grown steadily over the past five years, signaling to investors strong fundamentals about the company's performance. While expenses have also grown along with revenues over the past five years, profits still remain high as Domino's business continues to expand. This income statement provides valuable information about Domino's Pizza's business. Increasing revenues provide the first sign of strong fundamentals and increasing margins show increasing profitability, which will be analyzed in the Profitability Analysis section.
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