Dorman Products Inc (DORM)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,292,410 | 2,341,790 | 1,673,120 | 1,220,660 | 1,041,070 |
| Total stockholders’ equity | US$ in thousands | 1,168,200 | 1,042,630 | 932,736 | 853,559 | 773,584 |
| Financial leverage ratio | 1.96 | 2.25 | 1.79 | 1.43 | 1.35 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,292,410K ÷ $1,168,200K
= 1.96
The financial leverage ratio of Dorman Products Inc has exhibited fluctuations over the past five years. In 2023, the ratio stood at 1.96, a decrease from the previous year's ratio of 2.25. This indicates a lower level of financial leverage compared to the prior year.
Looking back further, the ratio was 1.79 in 2021, showing an increase from 1.43 in 2020 and 1.35 in 2019. The upward trend in the financial leverage ratio up to 2022 suggests the company was relying more on debt financing to support its operations and growth during that period.
However, the decrease in the financial leverage ratio in 2023 may imply that Dorman Products Inc has either reduced its reliance on debt or increased its equity base, leading to a lower level of financial risk and potentially increased financial stability.
Overall, fluctuations in the financial leverage ratio of Dorman Products Inc over the past five years indicate varying degrees of leverage and capital structure decisions made by the company. It is important for investors and stakeholders to monitor these changes to assess the company's risk profile and financial health.
Peer comparison
Dec 31, 2023