Dorman Products Inc (DORM)
Debt-to-equity 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-equity ratio | 0.40 | 0.46 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $467,239K ÷ $1,168,200K
= 0.40
The debt-to-equity ratio of Dorman Products Inc has displayed considerable fluctuation over the past five years. The ratio was 0.49 as of December 31, 2023, representing a decrease from the previous year's ratio of 0.70. This suggests that the company reduced its reliance on debt financing relative to equity financing in 2023.
Comparing to earlier years, the company's debt-to-equity ratio was 0.26 as of December 25, 2021. This indicates that the company had a higher proportion of debt relative to equity in its capital structure in 2021. However, in the two preceding years, as of December 26, 2020, and December 28, 2019, the company had a debt-to-equity ratio of 0.00, suggesting that the company was either debt-free or had a minimal amount of debt relative to equity during those periods.
Overall, the trend in Dorman Products Inc's debt-to-equity ratio over the past five years reflects varying levels of debt utilization in the company's capital structure. The recent decrease in the ratio indicates a shift towards a more conservative approach with less debt reliance. It is important to note that a lower debt-to-equity ratio typically signifies lower financial risk and higher solvency for the company.
Peer comparison
Dec 31, 2023