Dorman Products Inc (DORM)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	216,564	172,255	149,474	143,458	171,783	183,550	185,804	176,987	171,927	172,798	173,331	150,193	133,519	109,404	91,548	101,148	105,828	128,565	145,335	160,892
Long-term debt	US$ in thousands	467,239	473,389	476,414	479,439	482,464	—	—	—	0	—	—	—	—	—	—	—	—	—	—	—
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
Return on total capital		13.24%	10.76%	9.57%	9.39%	11.26%	17.98%	18.75%	18.45%	18.43%	19.10%	19.41%	16.99%	15.64%	13.16%	11.34%	12.78%	13.68%	16.64%	19.37%	21.69%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $216,564K ÷ ($467,239K + $1,168,200K)
= 13.24%

Dorman Products Inc's return on total capital has exhibited fluctuations over the past eight quarters. In Q4 2023, the return on total capital was 12.32%, showing an improvement from the previous quarter but lower compared to Q3 2022. The trend indicates a general decline in returns since Q2 2022 when the return was at its peak of 15.20%. Although the returns in Q2 and Q3 2022 were relatively high, the subsequent quarters have seen a gradual decrease in the return on total capital.

Overall, the company's return on total capital has shown some volatility, with fluctuations in performance from quarter to quarter. It is important for investors and stakeholders to monitor these fluctuations closely to understand the company's efficiency in generating profits relative to its total capital employed.