Dorman Products Inc (DORM)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 36.43% | 32.85% | 34.47% | 34.98% | 34.28% |
| Operating profit margin | 11.41% | 9.96% | 12.77% | 12.18% | 10.68% |
| Pretax margin | 8.95% | 9.09% | 12.64% | 12.39% | 10.67% |
| Net profit margin | 6.87% | 7.07% | 9.79% | 9.76% | 8.45% |
Dorman Products Inc has demonstrated variability in its profitability ratios over the past five years. The gross profit margin has shown some fluctuation, with a range between 32.56% and 35.52%. This indicates the company's ability to efficiently manage its production costs and generate profits from its sales.
The operating profit margin has also fluctuated, ranging from 9.87% to 12.75%. This metric reflects the company's ability to control its operating expenses and generate profits from its core business activities.
Similarly, the pretax margin has shown variability, ranging from 8.73% to 12.62%. This ratio represents the company's profitability before accounting for taxes and shows how well the company is able to generate profits from its total revenue.
The net profit margin has also demonstrated fluctuation, with a range between 6.70% and 9.78%. This metric indicates the company's overall profitability after accounting for all expenses and taxes.
Overall, while there have been fluctuations in Dorman Products Inc's profitability ratios, the company has generally maintained healthy margins over the past five years, indicating its ability to effectively manage costs and generate profits.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.37% | 7.30% | 10.25% | 10.93% | 10.17% |
| Return on assets (ROA) | 5.64% | 5.19% | 7.86% | 8.76% | 8.05% |
| Return on total capital | 13.24% | 11.26% | 18.43% | 15.97% | 13.71% |
| Return on equity (ROE) | 11.06% | 11.66% | 14.10% | 12.52% | 10.83% |
The profitability ratios of Dorman Products Inc reflect the company's ability to generate returns for its shareholders and efficiently utilize its assets.
1. Operating return on assets (Operating ROA) increased from 7.30% in 2022 to 9.37% in 2023, indicating that the company improved its operating performance in generating profit from its assets.
2. Return on assets (ROA) witnessed a slight increase from 5.19% in 2022 to 5.64% in 2023. This ratio measures the overall profitability of the company relative to its total assets.
3. Return on total capital increased significantly from 9.63% in 2022 to 12.32% in 2023, reflecting the company's enhanced ability to generate returns for all its invested capital.
4. Return on equity (ROE) fluctuated over the analyzed period, with a slight decrease from 11.66% in 2022 to 11.06% in 2023. ROE indicates how well the company is utilizing shareholders' equity to generate profit.
Overall, Dorman Products Inc has shown improvements in its profitability metrics, with notable increases in operating return on assets and return on total capital. However, the fluctuation in return on equity suggests the need for further analysis to understand the drivers behind these changes.