Dorman Products Inc (DORM)
Working capital 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 |
| Total current assets | US$ in thousands | 1,233,710 | 1,269,120 | 1,076,580 | 922,931 | 754,590 |
| Total current liabilities | US$ in thousands | 547,151 | 678,295 | 665,048 | 322,645 | 220,502 |
| Working capital turnover | 2.74 | 2.91 | 3.26 | 1.82 | 1.86 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,881,730K ÷ ($1,233,710K – $547,151K)
= 2.74
The working capital turnover for Dorman Products Inc has shown fluctuations over the past five years. In 2023, the working capital turnover ratio decreased to 2.81 from 2.93 in 2022, indicating a slight decrease in the efficiency of utilizing working capital to generate sales. However, the ratio remains relatively stable compared to the previous years.
Compared to 2021 when the ratio was 3.27, there has been a noticeable decline in the efficiency of working capital utilization. The company was able to generate $2.81 of sales for every dollar of working capital in 2023, reflecting a slight decrease in operational efficiency.
In 2020 and 2019, the working capital turnover ratios were lower at 1.82 and 1.86, respectively. This indicates an improvement in the company's efficiency in managing working capital from those years to the latest year, 2023.
Overall, while the working capital turnover ratio for Dorman Products Inc has fluctuated in recent years, it is essential for the company to focus on maintaining an optimal level of working capital to support its operations effectively and generate sales efficiently.
Peer comparison
Dec 31, 2023