Dorman Products Inc (DORM)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.20 | 0.21 | 0.21 | 0.21 | 0.21 | 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 |
| Debt-to-capital ratio | 0.29 | 0.30 | 0.30 | 0.31 | 0.32 | 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 |
| 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 |
| 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 |
Dorman Products Inc's solvency ratios provide insight into the company's ability to meet its debt obligations and manage financial risk. The debt-to-assets ratio, which measures the proportion of total assets financed by debt, has been relatively stable over the quarters, ranging from 0.25 to 0.31. This indicates that a moderate portion of Dorman's assets are funded by debt.
Similarly, the debt-to-capital ratio, which assesses the share of total capitalization that comes from debt, shows a consistent increase from 0.33 to 0.41 over the quarters. This suggests that Dorman is relying more heavily on debt to finance its operations and investments.
When looking at the debt-to-equity ratio, which compares total debt to total equity, there is a notable upward trend from 0.49 to 0.70 over the quarters. This indicates that Dorman's financial leverage has been increasing, with more debt being used to fund operations compared to equity.
The financial leverage ratio, which provides a broader view of financial risk by comparing total assets to equity, has also shown an upward trend, moving from 1.76 to 2.25 over the quarters. This indicates that the company has been employing more leverage to generate returns, potentially increasing its financial risk.
Overall, the solvency ratios of Dorman Products Inc suggest a trend towards higher reliance on debt financing, leading to increased financial leverage and potential risk. This raises concerns about the company's ability to manage its debt levels effectively and ensure long-term financial stability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 4.51 | 3.65 | 4.01 | 5.45 | 11.02 | 28.75 | 38.93 | 54.11 | 79.56 | 177.96 | 575.85 | 631.06 | 1,141.19 | 1,736.57 | — | — | — | — | — | — |
The interest coverage ratio for Dorman Products Inc has fluctuated over the recent quarters. From Q1 2022 to Q3 2023, the interest coverage ratio has experienced a significant decline from 52.05 to 3.61. This indicates that the company's ability to cover its interest payments from its earnings has weakened. The sharp drop in the ratio suggests a potential increase in the company's interest expenses or a decrease in its operating income.
While the interest coverage ratio improved slightly in Q4 2023 to 4.47, it is still considerably lower than the levels seen in the previous quarters. This may raise concerns about the company's ability to comfortably meet its interest obligations in the short term. Investors and creditors may monitor this trend closely to assess the company's financial health and its capacity to manage its debt effectively.
Overall, the fluctuating interest coverage ratio for Dorman Products Inc indicates the need for further analysis of the company's financial performance and debt management strategies to ensure sustainable operations in the future.