Dorman Products Inc (DORM)

Current 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
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
Current ratio		2.25	2.24	2.08	1.96	1.87	1.75	1.71	1.67	1.62	1.63	2.93	2.88	2.86	3.12	2.72	2.72	3.42	3.71	3.38	4.74

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,233,710K ÷ $547,151K
= 2.25

The current ratio of Dorman Products Inc has shown a positive trend over the past four quarters. In Q4 2023, the current ratio reached 2.25, indicating that the company had $2.25 in current assets for every $1 in current liabilities. This represents an improvement from the previous quarter's ratio of 2.24.

The increasing trend in the current ratio suggests that Dorman Products Inc has been able to strengthen its liquidity position and meet its short-term obligations more effectively. A current ratio above 2 generally indicates a healthy financial position, as it signifies that the company has sufficient current assets to cover its current liabilities.

Overall, the consistent increase in the current ratio reflects positively on Dorman Products Inc's liquidity management and financial health. However, it is essential for the company to continue monitoring and managing its liquidity to ensure sustainable operations and growth in the future.