Dorman Products Inc (DORM)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,424,520 | 2,292,410 | 2,341,790 | 1,673,120 | 1,220,660 |
| Total stockholders’ equity | US$ in thousands | 1,293,470 | 1,168,200 | 1,042,630 | 932,736 | 853,559 |
| Financial leverage ratio | 1.87 | 1.96 | 2.25 | 1.79 | 1.43 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,424,520K ÷ $1,293,470K
= 1.87
The financial leverage ratio for Dorman Products Inc has shown fluctuations over the period from December 31, 2020, to December 31, 2024. The ratio increased from 1.43 in 2020 to its peak of 2.25 in 2022, indicating a higher reliance on debt to finance the company's operations and investments during that year. However, in 2023 and 2024, the ratio decreased to 1.96 and 1.87, respectively, suggesting a reduction in the company's debt relative to its equity.
Overall, the trend in Dorman Products Inc's financial leverage ratio reflects varying levels of leverage employed by the company to fund its activities over the years. It is essential for stakeholders to monitor these fluctuations to gauge the company's financial risk and sustainability in the long term.
Peer comparison
Dec 31, 2024