Dorman Products Inc (DORM)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 36,814 | 46,034 | 58,782 | 155,576 | 68,353 |
| Short-term investments | US$ in thousands | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 |
| Receivables | US$ in thousands | 526,867 | 427,385 | 472,764 | 460,878 | 391,810 |
| Total current liabilities | US$ in thousands | 547,151 | 678,295 | 665,048 | 322,645 | 220,502 |
| Quick ratio | 1.04 | 0.71 | 0.81 | 1.93 | 2.11 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($36,814K
+ $5,000K
+ $526,867K)
÷ $547,151K
= 1.04
The quick ratio of Dorman Products Inc has exhibited fluctuations over the past five years. In 2023, the quick ratio improved to 1.09 from 0.76 in 2022, indicating a stronger ability to meet short-term obligations with liquid assets. However, compared to the previous years, the quick ratio in 2023 is still lower than the levels seen in 2020 and 2019.
The quick ratio of 1.09 in 2023 suggests that Dorman Products Inc has $1.09 in liquid assets available to cover each dollar of current liabilities, showcasing a favorable liquidity position. The company seems to have sufficient cash, marketable securities, or accounts receivable that can be quickly converted to cash to meet its short-term financial obligations.
Overall, while the quick ratio for Dorman Products Inc has shown improvement in 2023, it is essential to monitor future trends to ensure the company's ability to manage its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023