Dorman Products Inc (DORM)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 1.70 | 1.80 | 1.94 | 1.96 | 1.96 | 2.06 | 1.97 | 1.78 | 1.55 | 1.61 | 1.64 | 1.71 | 1.66 | 1.69 | 2.15 | 2.13 | 2.38 | 2.40 | 2.38 | 2.59 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 2.49 | 2.61 | 2.72 | 2.77 | 2.81 | 2.92 | 3.01 | 3.09 | 2.93 | 3.24 | 3.33 | 3.35 | 3.27 | 3.20 | 1.87 | 1.78 | 1.82 | 3.12 | 1.75 | 1.86 |
Dorman Products Inc's inventory turnover ratio, a measure of how efficiently the company manages its inventory, has been declining over the years from 2.59 in March 2020 to 1.70 in December 2024. A lower inventory turnover ratio may indicate that the company is holding on to its inventory for a longer period, which could tie up working capital and increase the risk of obsolete inventory.
The receivables turnover ratio, which measures how efficiently the company collects payments from its customers, was not provided in the data provided. Without this information, it is challenging to assess Dorman Products Inc's effectiveness in managing its accounts receivable.
Similarly, the payables turnover ratio, which measures how quickly the company pays its suppliers, was not available in the data. This ratio is essential for understanding the company's ability to manage its trade payables effectively.
The working capital turnover ratio, which indicates how effectively the company generates revenue from its working capital, has shown fluctuating trends over the years. It ranged from 1.75 in June 2020 to 3.35 in March 2022, before declining to 2.49 in December 2024. A higher working capital turnover ratio is generally desirable as it suggests that the company is efficiently utilizing its working capital to generate sales.
In conclusion, while Dorman Products Inc's inventory turnover and working capital turnover ratios provide insights into its operational efficiency, the lack of data on receivables and payables turnover ratios limits a comprehensive analysis of the company's overall activity ratios.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 214.83 | 202.96 | 188.49 | 186.27 | 186.14 | 177.31 | 185.54 | 204.98 | 235.96 | 226.47 | 222.23 | 213.30 | 220.07 | 215.47 | 169.85 | 171.15 | 153.65 | 151.82 | 153.11 | 141.15 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Dorman Products Inc's days of inventory on hand (DOH) measures the average number of days it takes for the company to sell its inventory. The trend in DOH over the years indicates how efficiently the company manages its inventory levels. In the period from March 31, 2020, to December 31, 2024, the DOH has fluctuated, ranging from a low of 141.15 days to a high of 235.96 days.
The increase in DOH from 2020 to 2022 suggests that Dorman Products Inc may be experiencing challenges in inventory management, possibly holding excess inventory or facing difficulties in selling products. However, the decrease in DOH from 2022 to 2024 indicates an improvement in inventory management efficiency, as the company was able to reduce the number of days it takes to clear its inventory.
Unfortunately, data on days of sales outstanding (DSO) and number of days of payables were not available for analysis, which limits a comprehensive assessment of the company's overall liquidity and operating cycle efficiency. It is essential for Dorman Products Inc to monitor and optimize its activity ratios continuously to ensure optimal cash flow and operational performance.
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | — | 11.89 | 11.87 | 11.68 | 13.35 | 13.28 | 12.55 | 7.74 | 7.17 | 13.62 | 12.38 | 12.01 | 10.94 | 10.27 | 10.15 |
| Total asset turnover | 0.83 | 0.83 | 0.85 | 0.87 | 0.84 | 0.86 | 0.83 | 0.80 | 0.74 | 0.91 | 0.89 | 0.85 | 0.80 | 0.77 | 0.95 | 0.89 | 0.90 | 0.89 | 0.83 | 0.87 |
Dorman Products Inc's fixed asset turnover ratio has shown fluctuating trends over the periods analyzed. It increased steadily from March 2020 to June 2021, indicating the company was generating more sales relative to its fixed assets. However, there was a significant drop in the ratio in the following periods, hitting a low of 7.17 in September 2021, before recovering slightly.
On the other hand, the total asset turnover ratio fluctuated as well, with a general downward trend from June 2021 to December 2022. This suggests that the company was less efficient in generating sales relative to its total assets during this time frame. There were slight improvements noted in the total asset turnover ratio in the most recent periods analyzed, but it remains below the levels seen in the earlier periods.
Overall, the trends in both fixed asset turnover and total asset turnover ratios indicate varying levels of efficiency in asset utilization by Dorman Products Inc. It is important for the company to closely monitor these ratios to ensure optimal utilization of assets and sustainable growth in the future.