Dorman Products Inc (DORM)
Debt-to-equity 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-equity ratio | 0.40 | 0.42 | 0.44 | 0.46 | 0.46 | 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-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 some fluctuations over the past eight quarters. The ratio has been on an upward trend from Q1 2022 to Q4 2023, indicating an increase in the company's reliance on debt relative to equity as a source of financing.
Initially starting at a relatively low level of 0.22 in Q2 2022, the ratio shows a steady increase to 0.70 by Q4 2022. This sharp rise may suggest that Dorman Products Inc took on more debt to support its operations or growth initiatives during this period.
Although there was a slight decrease in the ratio in Q1 2023 to 0.67, the overall trend remained upwards with subsequent ratios of 0.60 in Q2 2023, 0.54 in Q3 2023, and 0.49 in Q4 2023. This indicates a gradual but continuous increase in the company's debt levels in relation to its equity.
The rising trend in the debt-to-equity ratio could signal potential challenges in meeting debt obligations or increased financial risk for Dorman Products Inc. It is important for stakeholders to monitor this trend closely and assess the company's ability to manage its debt levels and maintain a healthy balance between debt and equity financing.
Peer comparison
Dec 31, 2023