Dorman Products Inc (DORM)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	57,137	45,127	47,467	34,433	36,814	31,953	35,666	33,307	46,034	35,435	51,966	53,427	58,782	57,263	155,539	166,603	155,576	170,502	359,558	161,778
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Cash ratio		0.10	0.08	0.09	0.07	0.07	0.06	0.06	0.05	0.07	0.05	0.08	0.08	0.09	0.09	0.47	0.50	0.48	0.32	1.10	0.51

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($57,137K + $—K) ÷ $563,802K
= 0.10

The cash ratio of Dorman Products Inc has fluctuated over the years, ranging from a low of 0.05 to a high of 1.10. The cash ratio measures the company's ability to cover its short-term liabilities with cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations, while a lower ratio may suggest potential liquidity issues.

In the most recent period, as of December 31, 2024, the cash ratio stood at 0.10, indicating that the company had $0.10 in cash and cash equivalents for every $1 of current liabilities. This level implies that Dorman Products Inc may have improved its liquidity position compared to prior periods, although the company should continue to monitor and manage its liquidity carefully to ensure financial stability.

Overall, a cash ratio of 0.10 suggests that Dorman Products Inc has a reasonable level of liquidity to cover its short-term obligations, but prudent financial management practices should be maintained to ensure ongoing financial health and stability.