Dorman Products Inc (DORM)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	214,760	171,048	171,551	133,373	105,828
Total assets	US$ in thousands	2,292,410	2,341,790	1,673,120	1,220,660	1,041,070
Operating ROA		9.37%	7.30%	10.25%	10.93%	10.17%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $214,760K ÷ $2,292,410K
= 9.37%

Dorman Products Inc's operating return on assets (operating ROA) has shown some fluctuations over the past five years. The operating ROA was 9.37% at the end of 2023, a noticeable increase from 7.30% in 2022 but lower than the 10.25% reported in 2021. This suggests that the company's operating income generated from its assets improved in 2023 compared to the previous year.

However, when looking at a longer-term trend, the operating ROA appears to have slightly decreased from 10.93% in 2020 and 10.17% in 2019. This decline may indicate that Dorman Products Inc's operational efficiency in generating profits from its assets has reduced over these two years.

Overall, Dorman Products Inc's operating ROA performance reflects a mix of improvements and declines, highlighting the importance of closely monitoring the company's operational efficiency and asset management strategies in order to sustain profitability and enhance shareholder value.