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.