Dorman Products Inc (DORM)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 36,814 | 46,034 | 58,782 | 155,576 | 68,353 |
| Short-term investments | US$ in thousands | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 |
| Total current liabilities | US$ in thousands | 547,151 | 678,295 | 665,048 | 322,645 | 220,502 |
| Cash ratio | 0.08 | 0.08 | 0.10 | 0.50 | 0.33 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($36,814K
+ $5,000K)
÷ $547,151K
= 0.08
The cash ratio of Dorman Products Inc has shown fluctuations over the past five years. The cash ratio was 0.13 at the end of both 2023 and 2022, indicating that the company had $0.13 of cash and cash equivalents for every $1 of current liabilities.
Comparing to the ratios of 2021, 2020, and 2019, there was a significant decrease in the cash ratio in 2021, where it dropped to 0.11. This could suggest a potential liquidity concern as the company had relatively less cash available to cover its short-term liabilities compared to the previous years.
On the other hand, there was a notable increase in the cash ratio in 2020, where it spiked to 0.51, and in 2019, where it was 0.37. These higher ratios indicate that Dorman Products Inc had more cash available relative to its current liabilities during those years.
In summary, the cash ratio of Dorman Products Inc has varied, with the company showing strong liquidity in 2020 and 2019 but experiencing a dip in liquidity in 2021. Monitoring this ratio over time can provide insights into the company's ability to meet its short-term obligations with its available cash resources.
Peer comparison
Dec 31, 2023