Dorman Products Inc (DORM)

Number of days of payables

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Payables turnover		9.14	10.55	10.62	10.68	8.85	7.43	6.93	7.90	6.76	7.35	8.32	8.43	8.36	8.40	10.96	12.67	10.06	11.24	8.65	8.69
Number of days of payables	days	39.93	34.61	34.37	34.18	41.25	49.13	52.64	46.21	54.03	49.69	43.86	43.31	43.64	43.43	33.31	28.81	36.29	32.48	42.17	42.01

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 9.14
= 39.93

Dorman Products Inc's number of days of payables has shown a decreasing trend over the past two years, indicating the company's ability to manage its payables more efficiently. In Q4 2023, the number of days of payables was 51.82 days, down from 56.13 days in Q4 2022. This suggests that the company is taking longer to pay its suppliers, potentially freeing up cash for other uses in the short term.

The downward trend in the number of days of payables from Q4 2022 to Q4 2023 could be attributed to the company negotiating better payment terms with its suppliers or improving its cash flow management practices.

It is worth noting that the number of days of payables fluctuated throughout the quarters in 2022 and 2023, but the overall trend shows a decrease in the time it takes for Dorman Products Inc to pay its suppliers. This improvement in managing payables could positively impact the company's working capital management and overall financial health.