Dorman Products Inc (DORM)

Financial leverage 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
Total assets	US$ in thousands	2,292,410	2,260,350	2,256,840	2,260,660	2,341,790	1,801,210	1,761,170	1,724,300	1,673,120	1,615,850	1,269,480	1,264,270	1,220,660	1,158,830	1,179,650	1,152,780	1,041,070	1,016,820	1,016,260	927,482
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
Financial leverage ratio		1.96	2.00	2.08	2.15	2.25	1.76	1.78	1.80	1.79	1.79	1.42	1.43	1.43	1.39	1.46	1.46	1.35	1.32	1.35	1.25

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 fluctuated over the past eight quarters, ranging from 1.76 to 2.25. The ratio measures the proportion of the company's debt to its equity, indicating the level of financial risk and leverage the company is utilizing.

A higher financial leverage ratio suggests that the company relies more on debt to finance its operations and growth, potentially increasing its financial risk in the event of economic downturns or fluctuations. On the other hand, a lower ratio indicates a more conservative financial structure with less debt dependence.

Dorman's financial leverage ratio peaked at 2.25 in Q4 2022 and has shown a declining trend since then, reaching 1.96 in Q4 2023. This could imply that the company has been reducing its debt levels relative to equity over the past year, potentially strengthening its financial position and decreasing its risk exposure.

It is essential for investors and stakeholders to monitor changes in the financial leverage ratio as it provides insights into the company's capital structure and risk profile, influencing investment decisions and overall financial health assessment.