Dorman Products Inc (DORM)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	467,239	482,464	0	—	—
Total assets	US$ in thousands	2,292,410	2,341,790	1,673,120	1,220,660	1,041,070
Debt-to-assets ratio		0.20	0.21	0.00	0.00	0.00

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $467,239K ÷ $2,292,410K
= 0.20

The trend analysis of Dorman Products Inc's debt-to-assets ratio reveals meaningful insights into the company's financial leverage over the past five years. The ratio has fluctuated significantly, indicating changes in the company's debt management strategy and financial health.

In 2019 and 2020, the company maintained a debt-to-assets ratio of 0.00, reflecting a period of minimal debt relative to its total assets. This could suggest a conservative approach to financing operations during these years.

However, in 2021, the ratio increased to 0.14, signaling an uptick in the proportion of debt used to finance assets. This shift may indicate a strategic decision to utilize debt for expansion or investment purposes while still maintaining a relatively low level of financial leverage.

By 2022, the ratio rose further to 0.31, indicating a more significant reliance on debt funding. This increase might be a result of growth initiatives or capital investments that required additional borrowing, potentially increasing the company's financial risk.

In 2023, the debt-to-assets ratio declined to 0.25, suggesting a decrease in the company's debt utilization compared to the previous year. This reduction could be attributed to debt repayment efforts or a more conservative financing approach in response to changing market conditions or internal strategies.

Overall, the fluctuation in Dorman Products Inc's debt-to-assets ratio implies varying levels of financial leverage and risk over the analyzed period. It is essential for stakeholders to monitor this ratio closely to assess the company's ability to meet its financial obligations and sustain its operations effectively.