Dorman Products Inc (DORM)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 295,979 | 216,564 | 230,984 | 186,622 | 103,373 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,293,470 | 1,168,200 | 1,042,630 | 932,736 | 853,559 |
| Return on total capital | 22.88% | 18.54% | 22.15% | 20.01% | 12.11% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $295,979K ÷ ($—K + $1,293,470K)
= 22.88%
Dorman Products Inc's return on total capital has shown a positive trend over the past five years, increasing from 12.11% as of December 31, 2020, to 22.88% as of December 31, 2024. This indicates that the company has been able to generate higher returns relative to its total capital employed in its operations.
The gradual improvement in return on total capital reflects the company's ability to efficiently utilize its capital resources to generate profits. The significant increase in 2022, followed by a slight dip in 2023 and a subsequent rise in 2024, suggests fluctuations in the company's performance, possibly influenced by internal or external factors impacting its operations.
Overall, Dorman Products Inc's upward trend in return on total capital demonstrates its effective management of resources and potential for generating value for its investors. However, it is important for investors and stakeholders to closely monitor any fluctuations in this ratio to assess the company's financial health and performance sustainability.
Peer comparison
Dec 31, 2024