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.
Peer comparison
Dec 31, 2023