Dorman Products Inc (DORM)

Working capital turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	1,893,680	1,901,551	1,836,706	1,784,557	1,718,167	1,624,260	1,560,827	1,455,608	1,343,272	1,247,556	1,200,483	1,123,030	1,095,246	1,033,597	986,773	1,007,766	991,329	1,012,103	1,006,261	1,228,380
Total current assets	US$ in thousands	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	754,590	724,850	724,321	634,574
Total current liabilities	US$ in thousands	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	279,400	325,641	314,537	220,502	195,552	214,483	133,916
Working capital turnover		2.76	2.87	2.97	3.06	2.91	3.23	3.32	3.34	3.26	3.20	1.87	1.78	1.82	1.75	1.76	1.87	1.86	1.91	1.97	2.45

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,893,680K ÷ ($1,233,710K – $547,151K)
= 2.76

Dorman Products Inc's working capital turnover has shown a varying trend over the past eight quarters. The working capital turnover ratio measures the efficiency of a company in utilizing its working capital to generate sales revenue.

From Q1 2022 to Q4 2023, the working capital turnover ratio fluctuated between 2.81 and 3.35. A general observation indicates that the company was able to generate $2.81 to $3.35 of revenue for every dollar of working capital invested during this period.

The trend suggests that Dorman Products Inc's management of working capital has been relatively efficient, with the ratio consistently above 2.5 in all quarters. A higher working capital turnover ratio typically indicates that the company is effectively managing its short-term assets and liabilities to support its sales activities.

However, the slight decline from Q2 2022 (3.33) to Q4 2023 (2.81) suggests a possible decrease in efficiency in utilizing working capital to generate sales. Further investigation into the causes of this trend shift may be warranted to ensure optimal management of working capital going forward.

Overall, while the working capital turnover ratio has shown fluctuations, Dorman Products Inc appears to have maintained a relatively efficient utilization of its working capital to support its sales operations during the period under review.