Dorman Products Inc (DORM)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,009,200 | 1,929,790 | 1,733,750 | 1,345,250 | 1,092,750 |
| Total current assets | US$ in thousands | 1,369,760 | 1,233,710 | 1,269,120 | 1,076,580 | 922,931 |
| Total current liabilities | US$ in thousands | 563,802 | 547,151 | 678,295 | 665,048 | 322,645 |
| Working capital turnover | 2.49 | 2.81 | 2.93 | 3.27 | 1.82 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,009,200K ÷ ($1,369,760K – $563,802K)
= 2.49
Dorman Products Inc's working capital turnover has shown a positive trend over the past five years, with the ratio increasing from 1.82 in December 31, 2020, to 2.49 in December 31, 2024. This indicates that the company has been able to more efficiently utilize its working capital to generate sales.
The working capital turnover ratio measures how effectively a company is able to generate sales revenue from its working capital. A higher ratio signifies that the company is managing its working capital more efficiently.
Although there was a slight decrease in the ratio in December 31, 2024 compared to the previous year, the overall trend suggests an improvement in the company's working capital management. This may indicate that Dorman Products Inc has optimized its processes to better utilize its current assets and liabilities to drive sales.
It is essential for the company to continue monitoring and enhancing its working capital turnover to ensure continued efficiency in its operations and sustainable growth in the future.
Peer comparison
Dec 31, 2024