Dorman Products Inc (DORM)

Payables turnover

		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
Cost of revenue (ttm)	US$ in thousands	1,615,065	1,670,618	1,615,513	1,555,695	1,591,301	1,479,767	1,410,829	1,309,804	1,198,298	1,101,224	1,052,436	998,868	985,975	947,639	917,825	928,318	909,599	908,039	885,427	853,842
Payables	US$ in thousands	176,664	158,418	152,121	145,686	179,819	199,180	203,456	165,840	177,389	149,925	126,463	118,529	117,878	112,757	83,752	73,283	90,437	80,813	102,307	98,281
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

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,615,065K ÷ $176,664K
= 9.14

The payables turnover ratio measures how efficiently a company manages its accounts payable by assessing how many times the company pays off its suppliers during a specific period. A higher payables turnover indicates that the company is paying its suppliers more frequently.

Analyzing the payables turnover ratio of Dorman Products Inc over the past eight quarters shows fluctuations in the company's payables management. In Q4 2023, the payables turnover ratio was 7.04, indicating that the company paid off its suppliers approximately 7.04 times during that quarter. This ratio was higher than the previous quarter Q3 2023, which had a ratio of 8.13.

The trend over the past year shows an overall improvement in payables turnover, with Q2 and Q3 2023 displaying the highest ratios of 8.31 and 8.13, respectively. This suggests that Dorman Products Inc has been managing its accounts payable more efficiently during those periods.

Comparing the Q4 2023 ratio to the same quarter in the previous year (Q4 2022), there has been an increase from 6.50 to 7.04, indicating a positive trend in payables management.

Overall, Dorman Products Inc's payables turnover has shown variability in the past eight quarters, but the general trend indicates an improvement in the company's ability to pay off its suppliers efficiently.