Dorman Products Inc (DORM)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 129,259 | 121,549 | 131,532 | 106,870 | 83,762 |
| Total assets | US$ in thousands | 2,292,410 | 2,341,790 | 1,673,120 | 1,220,660 | 1,041,070 |
| ROA | 5.64% | 5.19% | 7.86% | 8.76% | 8.05% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $129,259K ÷ $2,292,410K
= 5.64%
Dorman Products Inc.'s return on assets (ROA) has shown a fluctuating trend over the past five years. The ROA decreased from 8.05% in 2019 to 5.19% in 2022, indicating a significant decline in the company's ability to generate profits relative to its total assets during that period. However, there was a slight improvement in 2023, with the ROA increasing to 5.64%.
When compared to the peak ROA of 8.76% in 2020, the company's performance in 2023 still falls short, suggesting that Dorman Products Inc. may be facing challenges in effectively utilizing its assets to generate returns for its stakeholders. Further analysis of the company's financial statements and operations is recommended to identify the factors influencing these fluctuations in ROA and to devise strategies for enhancing asset efficiency and profitability in the future.
Peer comparison
Dec 31, 2023