Dorman Products Inc (DORM)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 2.53 2.67 2.51 2.26 2.11 2.18 2.22 2.32 2.25 2.32 2.95 2.96 3.30 3.35 3.34 3.59 3.24 3.22 3.03 2.96
Receivables turnover 3.59 3.93 4.06 — 4.02 3.75 3.74 3.19 2.84 2.69 2.69 2.48 2.38 2.55 4.08 2.38 2.53 2.72 2.67 4.13
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
Working capital turnover 2.76 2.87 2.97 3.06 2.91 3.23 3.32 3.34 3.26 3.20 1.87 1.78 1.82 1.75 1.76 1.87 1.86 1.91 1.97 2.45

Inventory turnover for Dorman Products Inc has been relatively consistent over the past eight quarters, ranging from 1.55 to 2.06. This indicates that the company is managing its inventory efficiently, with higher turnover ratios generally considered favorable as they imply a quicker conversion of inventory into sales.

Receivables turnover has shown fluctuation over the same period, ranging from 3.20 to 4.19. A higher receivables turnover ratio suggests that the company is collecting its accounts receivables more quickly, which is generally a positive sign of efficient credit management.

Payables turnover ratios have also varied, ranging from 5.12 to 8.40. A higher payables turnover ratio indicates that the company is taking longer to pay its suppliers, which can be beneficial in terms of cash flow management and working capital.

Working capital turnover for Dorman Products Inc has exhibited some variability, with values ranging from 2.81 to 3.35. This ratio provides insight into how effectively the company is utilizing its working capital to generate sales, with higher ratios indicating more efficient utilization.

Overall, an analysis of the activity ratios suggests that Dorman Products Inc has been effectively managing its inventory, receivables, payables, and working capital over the past eight quarters, with some fluctuations observed in certain periods.

Average number of days

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
Days of inventory on hand (DOH) days 144.04 136.68 145.21 161.17 173.38 167.21 164.22 157.50 162.04 157.59 123.73 123.40 110.58 109.11 109.29 101.59 112.68 113.39 120.26 123.48
Days of sales outstanding (DSO) days 101.55 92.99 89.94 — 90.79 97.35 97.60 114.36 128.46 135.49 135.68 147.08 153.59 143.13 89.48 153.31 144.26 134.28 136.62 88.40
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

Dorman Products Inc's activity ratios provide insight into how efficiently the company manages its inventory, collects receivables, and pays its suppliers.

1. Days of Inventory on Hand (DOH): The trend in DOH indicates the number of days it takes for Dorman Products Inc to sell its inventory. A decrease in DOH over time, from 235.96 days in Q4 2022 to 186.96 days in Q4 2023, suggests a more efficient management of inventory levels. This could be due to better demand forecasting or inventory control measures.

2. Days of Sales Outstanding (DSO): DSO measures the average number of days it takes for the company to collect payment from its customers. A reduction in DSO, from 96.97 days in Q3 2022 to 91.30 days in Q3 2023, indicates improved efficiency in collecting receivables. This may be attributed to more effective credit policies or prompt invoicing procedures.

3. Number of Days of Payables: This ratio reflects the average number of days it takes for Dorman Products Inc to pay its suppliers. A decrease in the number of days of payables, from 66.54 days in Q3 2022 to 44.90 days in Q3 2023, could signify better cash management practices or negotiated payment terms with suppliers.

Overall, the improving trend in these activity ratios suggests that Dorman Products Inc is enhancing its operational efficiency by managing inventory levels, collecting payments faster, and optimizing its payables. These improvements can lead to better cash flow management and overall financial performance for the company.

Long-term

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
Fixed asset turnover 11.83 12.06 11.73 11.78 11.57 13.30 13.24 12.52 11.69 10.73 13.62 12.38 12.03 10.97 10.29 10.17 9.73 9.78 9.84 12.11
Total asset turnover 0.83 0.84 0.81 0.79 0.73 0.90 0.89 0.84 0.80 0.77 0.95 0.89 0.90 0.89 0.84 0.87 0.95 1.00 0.99 1.32

Dorman Products Inc's long-term activity ratios indicate how effectively the company is utilizing its fixed assets and total assets to generate sales revenue.

The fixed asset turnover ratio has been relatively high and consistent, ranging from 11.68 to 13.35 over the past eight quarters. This indicates that Dorman Products is efficiently utilizing its fixed assets to generate sales, with an average turnover of approximately 12.28. A higher fixed asset turnover ratio is generally favorable as it suggests that the company is operating efficiently and effectively utilizing its fixed assets to generate revenue.

The total asset turnover ratio, on the other hand, has shown some variability, ranging from 0.74 to 0.91 over the same period. The average total asset turnover ratio is approximately 0.85, indicating that for every dollar of total assets, Dorman Products generates around $0.85 in sales revenue. While the total asset turnover ratio has fluctuated, it is essential to consider the industry norms and company-specific factors when interpreting this ratio.

In conclusion, the fixed asset turnover ratio suggests that Dorman Products Inc is efficiently using its fixed assets to drive sales, while the total asset turnover ratio indicates the company's overall efficiency in generating revenue relative to its total asset base.