Dorman Products Inc (DORM)

Current ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total current assets US$ in thousands 1,369,760 1,233,710 1,269,120 1,076,580 922,931
Total current liabilities US$ in thousands 563,802 547,151 678,295 665,048 322,645
Current ratio 2.43 2.25 1.87 1.62 2.86

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,369,760K ÷ $563,802K
= 2.43

The current ratio of Dorman Products Inc decreased from 2.86 in 2020 to 1.62 in 2021, indicating a decline in short-term solvency and liquidity. However, the ratio improved in the following years, reaching 1.87 in 2022, 2.25 in 2023, and 2.43 in 2024. This suggests that the company's ability to meet its short-term obligations using its current assets improved over the period, reflecting better liquidity and financial health.