Dorman Products Inc (DORM)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.87 | 1.96 | 2.25 | 1.79 | 1.43 |
Dorman Products Inc has consistently maintained a strong solvency position over the years based on the provided solvency ratios.
1. Debt-to-assets ratio: The company has consistently maintained a debt-to-assets ratio of 0.00 over the past five years. This indicates that the company's total debt level is very low or non-existent in relation to its total assets, reflecting a strong financial position.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio has also been at 0.00 for each year from 2020 to 2024. This reaffirms the company's ability to finance its operations primarily through equity rather than debt, further strengthening its financial stability.
3. Debt-to-equity ratio: The debt-to-equity ratio has been consistently at 0.00 for each year in the provided data. A debt-to-equity ratio of 0.00 indicates that the company has no debt financing relative to its equity, highlighting a low financial risk and strong capacity to withstand economic challenges.
4. Financial leverage ratio: The financial leverage ratio, which measures the extent to which the company relies on debt financing, shows a slight increase from 1.43 in 2020 to 2.25 in 2022, but then decreases to 1.87 in 2024. Despite the variations, the financial leverage ratio remains relatively low throughout the years, indicating that the company has maintained a conservative approach to leverage, which is generally favorable for long-term financial health.
Overall, Dorman Products Inc's solvency ratios suggest a prudent financial management strategy focused on maintaining a low debt burden and stable capital structure, positioning the company well to weather potential economic downturns and pursue growth opportunities.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 7.45 | 4.51 | 14.82 | 86.32 | 172.58 |
The interest coverage ratio for Dorman Products Inc has displayed a declining trend over the years, starting at a robust 172.58 in 2020 and gradually decreasing to 86.32 in 2021, 14.82 in 2022, 4.51 in 2023, and increasing slightly to 7.45 in 2024.
The substantial drop from 2020 to 2022 indicates a significant reduction in the company's ability to cover its interest expenses with its operating earnings during this period. The sharp decline could potentially raise concerns about the firm's financial health and its ability to meet its interest obligations comfortably.
While the ratio improved in 2024, it is still considerably lower than the 2020 levels. This indicates that Dorman Products Inc may still have some room for improvement in managing its interest expenses relative to its operating income.
Overall, the decreasing trend in the interest coverage ratio for Dorman Products Inc suggests a potential strain on the company's ability to service its debt obligations efficiently over the years, highlighting the importance of monitoring and addressing this aspect of its financial performance.