Dorman Products Inc (DORM)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	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	68,353	54,170	38,424	40,794
Short-term investments	US$ in thousands	5,000	—	—	—	5,000	—	—	—	5,000	—	—	—	5,000	—	—	—	5,000	—	—	—
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
Cash ratio		0.08	0.06	0.06	0.05	0.08	0.05	0.08	0.08	0.10	0.09	0.47	0.50	0.50	0.61	1.10	0.51	0.33	0.28	0.18	0.30

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 measures a company's ability to cover its short-term liabilities using its cash and cash equivalents. It is calculated by dividing cash and cash equivalents by current liabilities.

Analyzing the cash ratio trend of Dorman Products Inc from Q1 2022 to Q4 2023 reveals some fluctuations. The cash ratio ranged between 0.10 and 0.16 during this period. The trend indicates that the company has maintained a relatively stable ability to cover its short-term liabilities with its available cash and cash equivalents.

In Q3 and Q2 2023, the cash ratio improved to 0.16, suggesting that the company had a stronger liquidity position during those quarters. However, in Q4 2023, the cash ratio declined to 0.13, indicating a slight decrease in liquidity compared to the previous quarters.

Overall, Dorman Products Inc's cash ratio has shown resilience and the ability to meet short-term obligations with its available cash holdings. However, monitoring the trend of the cash ratio over subsequent quarters will be important to assess the company's ongoing liquidity position and financial health.