Dorman Products Inc (DORM)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	190,004	129,259	121,549	131,532	106,870
Total assets	US$ in thousands	2,424,520	2,292,410	2,341,790	1,673,120	1,220,660
ROA		7.84%	5.64%	5.19%	7.86%	8.76%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $190,004K ÷ $2,424,520K
= 7.84%

The return on assets (ROA) for Dorman Products Inc has exhibited fluctuations over the past five years. In 2020, the ROA stood at 8.76%, reflecting the company's ability to generate earnings relative to its total assets. However, there was a slight decrease in 2021 to 7.86%, indicating a somewhat lower efficiency in utilizing its assets to generate profits.

By the end of 2022, the ROA further decreased to 5.19%, implying a potential decline in the company's profitability relative to its asset base. In 2023, there was a modest improvement to 5.64%, suggesting a slight recovery in asset utilization efficiency.

Notably, by the end of 2024, the ROA rebounded significantly to 7.84%, surpassing the levels seen in the previous years. This increase may indicate improved profitability from the efficient management and utilization of the company's assets.

Overall, the ROA trend for Dorman Products Inc reflects variable performance in capital efficiency and profitability, with fluctuations in the company's ability to generate returns relative to its asset base. Further analysis and monitoring of this metric will be essential to assess the company's financial health and operational effectiveness in the future.