Dorman Products Inc (DORM)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,746,930	1,591,300	1,200,000	985,975	910,901
Payables	US$ in thousands	176,664	179,819	177,389	117,878	90,437
Payables turnover		9.89	8.85	6.76	8.36	10.07

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,746,930K ÷ $176,664K
= 9.89

The payables turnover ratio for Dorman Products Inc has shown fluctuations over the past five years. The ratio increased from 6.02 in 2020 to 7.04 in 2023, indicating that the company's ability to pay off its accounts payable within a certain period improved. This reflects a more efficient management of the company's trade credit obligations.

Although there was a slight decrease in 2022 with a payables turnover of 6.50, the ratio still remained relatively high, signaling that Dorman Products Inc has been effectively managing its payments to suppliers. The company's payables turnover was lowest in 2021 at 4.97, suggesting a longer period taken to settle accounts payable during that year.

Overall, Dorman Products Inc has shown varying levels of efficiency in managing its accounts payable over the past five years, but the general trend indicates a relatively strong performance in this aspect.