Dorman Products Inc (DORM)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,168,200 | 1,042,630 | 932,736 | 853,559 | 773,584 |
| Debt-to-capital ratio | 0.29 | 0.32 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $467,239K ÷ ($467,239K + $1,168,200K)
= 0.29
The debt-to-capital ratio of Dorman Products Inc has fluctuated over the past five years, indicating changes in the company's capital structure and financial leverage. In 2023, the ratio stood at 0.33, reflecting a decrease from the previous year's 0.41. This reduction suggests that Dorman Products Inc relied less on debt financing relative to its total capital in 2023 compared to 2022.
The significant increase in the ratio from 0.20 in 2021 to 0.41 in 2022 indicates a higher proportion of debt in the capital structure, which could point to increased financial risk or strategic shifts in funding sources. Notably, the debt-to-capital ratios for 2020 and 2019 were both 0.00, indicating that the company had no debt in these years or that debt constituted an insignificant portion of the company's capital structure.
Overall, the fluctuation in Dorman Products Inc's debt-to-capital ratio suggests that the company has been adjusting its capital structure over the years, potentially to manage risk, optimize financial flexibility, or capitalize on strategic opportunities. Further analysis of the company's financial performance and management's capital allocation decisions would provide additional insights into the drivers behind these changes.
Peer comparison
Dec 31, 2023