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 | ||
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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.
Peer comparison
Dec 31, 2024