Dorman Products Inc (DORM)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,881,730	1,718,170	1,343,090	1,095,250	991,329
Receivables	US$ in thousands	526,867	427,385	472,764	460,878	391,810
Receivables turnover		3.57	4.02	2.84	2.38	2.53

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $1,881,730K ÷ $526,867K
= 3.57

The receivables turnover ratio measures how efficiently a company is managing its accounts receivable. A higher ratio indicates a faster turnover of receivables, which is generally favorable as it means the company is collecting cash from its customers more quickly.

Analyzing Dorman Products Inc's receivables turnover over the past five years, we can observe fluctuations in the ratio. In 2023, the receivables turnover was 3.66, a decrease from 4.06 in 2022 but still higher than in 2021 and 2020. This indicates that in 2023, Dorman Products Inc collected its accounts receivable 3.66 times during the year, on average.

The trend suggests that the company's ability to collect receivables improved from 2020 to 2022 but dipped slightly in 2023. This could be due to changes in the company's credit policies, customer payment behavior, or changes in sales volume. It is important for Dorman Products Inc to monitor this ratio consistently to ensure efficient management of its accounts receivable, as a lower turnover ratio could indicate potential issues with collecting payments from customers.