Dorman Products Inc (DORM)

Working capital turnover

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
Revenue (ttm) US$ in thousands 2,009,197 1,969,721 1,954,134 1,931,751 1,929,788 1,936,773 1,862,057 1,798,908 1,733,749 1,630,644 1,565,600 1,458,816 1,345,249 1,248,289 1,200,483 1,123,030 1,092,748 1,031,099 984,275 1,005,268
Total current assets US$ in thousands 1,369,760 1,316,080 1,233,040 1,162,820 1,233,710 1,195,360 1,188,780 1,189,740 1,269,120 1,177,020 1,131,060 1,088,200 1,076,580 1,013,140 974,609 966,637 922,931 870,875 886,700 854,260
Total current liabilities US$ in thousands 563,802 561,323 514,119 465,620 547,151 533,048 570,371 606,923 678,295 673,878 660,335 652,618 665,048 622,760 332,528 335,417 322,645 540,480 325,641 314,537
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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,009,197K ÷ ($1,369,760K – $563,802K)
= 2.49

Dorman Products Inc's working capital turnover has shown fluctuations over the past few years. The ratio measures how efficiently the company is using its working capital to generate sales revenue. A higher turnover indicates better efficiency in managing working capital.

From March 31, 2020, to June 30, 2022, the working capital turnover ratio ranged from 1.75 to 3.35, showing variability in the company's ability to generate sales relative to its working capital. Notably, there was a significant improvement in efficiency from September 30, 2020, to June 30, 2022, with the ratio consistently above 3. This suggests Dorman Products Inc was effectively utilizing its working capital during this period.

However, from September 30, 2022, to December 31, 2024, the working capital turnover decreased gradually, falling to a range between 2.49 and 2.92. This decline may indicate a decrease in the company's efficiency in converting working capital into revenue. It is essential for the company to monitor and potentially improve this ratio to ensure optimal utilization of its working capital for generating sales.

Overall, the trend in Dorman Products Inc's working capital turnover ratio suggests fluctuations in efficiency over time, with periods of strong performance followed by a slight decline. Monitoring this ratio can provide valuable insights into the company's working capital management and operational efficiency.