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.