Dorman Products Inc (DORM)

Short-term

Turnover ratios

Dorman Products Inc's inventory turnover ratio depicts a slight decline over the years, from 2.38 in 2020 to 1.70 in 2024. This suggests that the company is taking longer to sell its inventory, indicating a potential issue with managing and moving its stock efficiently.

The receivables turnover ratio data is unavailable for all years, indicating a lack of information to assess how quickly the company is collecting payments from its customers. Without this metric, it is difficult to evaluate Dorman Products Inc's efficiency in collecting receivables.

Similarly, data for payables turnover ratio is not provided, making it impossible to evaluate how quickly the company is paying off its suppliers. This ratio is crucial for understanding the efficiency of Dorman Products Inc in managing its accounts payables.

The working capital turnover ratio shows a decreasing trend, declining from 3.27 in 2021 to 2.49 in 2024. This indicates that the company's ability to generate revenue from its working capital has decreased over time, raising concerns about its operational efficiency and financial management.

In summary, while the inventory turnover and working capital turnover ratios provide some insights into Dorman Products Inc's operational efficiency, the absence of data for receivables turnover and payables turnover ratios limits a comprehensive evaluation of the company's activity ratios.

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Average number of days

Dorman Products Inc's Days of Inventory on Hand (DOH) has shown an increasing trend over the years, from 153.65 days in 2020 to 214.83 days in 2024. This suggests that the company is holding onto inventory for a longer period, which could tie up capital and potentially indicate inefficiencies in inventory management.

The Days of Sales Outstanding (DSO) and Number of Days of Payables data are not available for analysis, which limits our ability to assess the efficiency of the company's accounts receivable collection and accounts payable management.

Overall, based on the available data on inventory turnover, Dorman Products Inc may need to evaluate and possibly streamline its inventory management processes to optimize working capital and improve its overall operational efficiency.

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Long-term

Dorman Products Inc's fixed asset turnover ratio has exhibited fluctuations over the years. In 2020, the company had a high fixed asset turnover of 12.01, indicating that it generated $12.01 in sales for every dollar invested in fixed assets. However, this ratio decreased significantly to 7.74 in 2021, suggesting a potential decline in the efficiency of utilizing fixed assets to generate sales.

The ratio improved in 2022, reaching 11.68, indicating a more efficient utilization of fixed assets compared to the previous year. In 2023 and 2024, the data is missing, so it is not possible to provide a trend analysis for these years.

Looking at the total asset turnover ratio, it also experienced a decline over the years. In 2020, the ratio stood at 0.90, indicating that Dorman Products Inc generated $0.90 in sales for every dollar of total assets. By 2022, this ratio decreased to 0.74, signaling a decrease in the company's efficiency in utilizing its total assets to generate sales.

However, there was a slight improvement in 2023 and 2024, with the total asset turnover ratio rising to 0.84 and 0.83, respectively. This suggests a slight improvement in the company's ability to generate sales relative to its total assets in those years.

Overall, while there have been fluctuations in the fixed asset turnover ratio, indicating varying levels of efficiency in utilizing fixed assets, the total asset turnover ratio has shown a declining trend with some improvement in the later years. These ratios provide insight into the company's efficiency in generating sales relative to its asset base, highlighting areas that may require further analysis and potential improvement.