Dorman Products Inc (DORM)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	214,760	170,292	148,181	142,450	171,048	183,377	185,471	176,612	171,551	172,365	172,947	149,962	133,373	109,358	91,548	101,148	105,828	128,565	145,335	160,892
Total assets	US$ in thousands	2,292,410	2,260,350	2,256,840	2,260,660	2,341,790	1,801,210	1,761,170	1,724,300	1,673,120	1,615,850	1,269,480	1,264,270	1,220,660	1,158,830	1,179,650	1,152,780	1,041,070	1,016,820	1,016,260	927,482
Operating ROA		9.37%	7.53%	6.57%	6.30%	7.30%	10.18%	10.53%	10.24%	10.25%	10.67%	13.62%	11.86%	10.93%	9.44%	7.76%	8.77%	10.17%	12.64%	14.30%	17.35%

December 31, 2023 calculation

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

To analyze Dorman Products Inc's operating return on assets (operating ROA) based on the given data from the table, we observe fluctuations in the operating ROA over the eight quarters presented.

Dorman's operating ROA has varied between 6.30% and 10.53% during this period. The highest operating ROA was recorded in Q3 2022 at 10.53%, while the lowest was in Q1 2023 at 6.30%. This suggests some variability in the company’s operational efficiency and asset utilization over time.

Overall, Dorman's operating ROA has shown a general decreasing trend from 10.18% in Q3 2022 to 9.37% in Q4 2023. This decline indicates a potential weakening in the company's ability to generate operating profits from its assets.

It is important for Dorman Products Inc to carefully monitor and analyze the factors contributing to these fluctuations in operating ROA to identify areas for improvement and ensure sustainable profitability and efficiency in the utilization of its assets.