Dorman Products Inc (DORM)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash US$ in thousands 57,137 36,814 46,034 58,782 155,576
Short-term investments US$ in thousands
Receivables US$ in thousands
Total current liabilities US$ in thousands 563,802 547,151 678,295 665,048 322,645
Quick ratio 0.10 0.07 0.07 0.09 0.48

December 31, 2024 calculation

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

The quick ratio for Dorman Products Inc has shown a declining trend over the years, decreasing from 0.48 in December 31, 2020, to 0.09 in December 31, 2021, and further to 0.07 in both December 31, 2022 and December 31, 2023. This indicates that the company's ability to meet its short-term financial obligations with its most liquid assets has weakened. However, there was a slight improvement in the quick ratio to 0.10 as of December 31, 2024.

The decreasing trend in the quick ratio may suggest potential liquidity challenges for the company, as it indicates a decreasing ability to cover immediate liabilities with its current assets excluding inventory. It is essential for stakeholders, including investors and creditors, to monitor this trend closely to assess the company's liquidity risk and its ability to manage short-term financial obligations efficiently.