Dorman Products Inc (DORM)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	129,259	96,811	86,890	92,025	121,549	137,793	140,296	134,009	131,532	133,403	134,558	116,825	106,870	88,467	75,516	83,130	83,762	100,813	113,522	126,362
Total stockholders’ equity	US$ in thousands	1,168,200	1,128,090	1,086,070	1,049,140	1,042,630	1,021,040	990,957	959,400	932,736	904,524	892,985	883,811	853,559	831,365	807,132	791,375	773,584	772,592	750,332	741,707
ROE		11.06%	8.58%	8.00%	8.77%	11.66%	13.50%	14.16%	13.97%	14.10%	14.75%	15.07%	13.22%	12.52%	10.64%	9.36%	10.50%	10.83%	13.05%	15.13%	17.04%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $129,259K ÷ $1,168,200K
= 11.06%

The Return on Equity (ROE) of Dorman Products Inc has shown variability over the given quarters. ROE measures the company's profitability by evaluating how efficiently it generates profit from its shareholders' equity. In Q4 2023, the ROE stood at 11.06%, which was higher compared to the previous three quarters. This increase indicates a positive trend in utilizing shareholders' equity to generate profits.

However, the ROE has been fluctuating, with Q2 2022 showing the highest ROE of 14.16%, followed by a decline in Q3 2022. The downward trend continued until Q4 2023, where a slight increase was observed. While the ROE values were above 8% throughout, they indicate some inconsistency in the company's ability to generate profits relative to its equity base.

For a thorough analysis, it would be beneficial to investigate the factors influencing these fluctuations in ROE, such as changes in revenue, expenses, asset management, and debt levels. Additionally, comparing Dorman Products Inc's ROE with industry benchmarks and peer companies can provide further insights into its performance and competitiveness.