Dorman Products Inc (DORM)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.29	0.30	0.30	0.31	0.32	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	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 been fluctuating over the past eight quarters. The ratio stood at 0.33 in Q4 2023, indicating that approximately 33% of the company's capital structure was funded by debt. This was a slight decrease compared to the previous quarter's ratio of 0.35.

Looking further back, the trend shows an overall increase in the debt-to-capital ratio from Q1 2022 to Q4 2022, where it reached 0.41, indicating an increase in the proportion of debt in the company's capital structure. However, the ratio decreased in Q1 2023 to 0.40 before declining further in Q2 and Q3 2023 to 0.38 and 0.35 respectively.

Overall, the fluctuation in the debt-to-capital ratio over the past eight quarters suggests that Dorman Products Inc has been managing its debt and capital structure dynamically. It is important for the company to closely monitor this ratio to ensure that it maintains an optimal balance between debt and equity to support its operations and growth while managing financial risk effectively.