Dorman Products (Dorman Products) Gross Margin % : 39.29% (As of Dec. 2023)

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What is Dorman Products Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Dorman Products's Gross Profit for the three months ended in Dec. 2023 was $194 Mil. Dorman Products's Revenue for the three months ended in Dec. 2023 was $494 Mil. Therefore, Dorman Products's Gross Margin % for the quarter that ended in Dec. 2023 was 39.29%.

Warning Sign:

Dorman Products Inc gross margin has been in long-term decline. The average rate of decline per year is -1.6%.

The historical rank and industry rank for Dorman Products's Gross Margin % or its related term are showing as below:

DORM' s Gross Margin % Range Over the Past 10 Years
Min: 32.56 Med: 36.87 Max: 39.71
Current: 35.52

During the past 13 years, the highest Gross Margin % of Dorman Products was 39.71%. The lowest was 32.56%. And the median was 36.87%.

DORM's Gross Margin % is ranked better than
84.77% of 1267 companies
in the Vehicles & Parts industry
Industry Median: 19.36 vs DORM: 35.52

Dorman Products had a gross margin of 39.29% for the quarter that ended in Dec. 2023 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Dorman Products was -1.60% per year.

Dorman Products Gross Margin % Historical Data

The historical data trend for Dorman Products's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Dorman Products Gross Margin % Chart

Dorman Products Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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34.28

35.06

34.41

32.56

35.52

Dorman Products Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															31.47	30.95	34.02	37.53	39.29

Competitive Comparison of Dorman Products's Gross Margin %

For the Auto Parts subindustry, Dorman Products's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Dorman Products's Gross Margin % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Dorman Products's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Dorman Products's Gross Margin % falls into.

Dorman Products Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Dorman Products's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	685.4	/	1929.788
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1929.788 - 1244.365)	/	1929.788
	=	35.52 %

Dorman Products's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	194.2	/	494.296
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(494.296 - 300.074)	/	494.296
	=	39.29 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Dorman Products (NAS:DORM) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Dorman Products had a gross margin of 39.29% for the quarter that ended in Dec. 2023 => Competition eroding margins

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Dorman Products Gross Margin % Related Terms

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Dorman Products (Dorman Products) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Dorman Products Inc (NAS:DORM) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

N/A

Address

3400 East Walnut Street, Colmar, PA, USA, 18915

Website

https://www.dormanproducts.com

Dorman Products Inc is a supplier of original equipment parts for automobiles. The company produces automotive and heavy-duty replacement parts, automotive hardware, brake parts, and fasteners for the automotive and heavy-duty aftermarket. The products are sold under the Dorman brand and its sub-brands OE Solutions, Help!, Conduct-Tite, and HD Solutions through aftermarket retailers, regional and local warehouse distributors, specialty markets, and salvage yards. It operates as a single reportable operating segment, namely, the sale of replacement and upgrades parts in the motor vehicle aftermarket industry, serving passenger cars, light-, medium-, and heavy-duty trucks as well as specialty vehicles. The company operates primarily in the United States.

Executives

G. Michael Stakias	director	C/O DORMAN PRODUCTS, INC., 3400 EAST WALNUT STREET, COLMAR PA 18915
Lindsay Hunt	officer: Pres and CEO, Specialty Vehicl	3400 EAST WALNUT STREET, COLMAR PA 18915
Brian Borradaile	officer: SVP, Strategy & Corp Dev	3400 EAST WALNUT STREET, COLMAR PA 18915
Eric Luftig	officer: Senior Vice President, Product	3400 EAST WALNUT STREET, COLMAR PA 18915
Jeffery Darby	officer: SVP, Sales	C/O DORMAN PRODUCTS, INC., 3400 EAST WALNUT STREET, COLMAR PA 18915
Steven L Berman	director, 10 percent owner, officer: President, COO
James Darrell Thomas	director	3700 JUNEAU AVENUE, MILWAUKEE WI 53208
John J Gavin	director	GMS INC., 100 CRESCENT CENTRE PARKWAY, SUITE 800, TUCKER GA 30084
Donna M. Long	officer: SVP, CIO	3400 EAST WALNUT STREET, COLMAR PA 18915
John Mcknight	officer: SVP, Operations	3400 EAST WALNUT STREET, COLMAR PA 19103
Paul E Anderson	officer: President, Heavy Duty	3400 EAST WALNUT STREET, COLMAR PA 18915
Scott Leff	officer: SVP, CHRO	3400 EAST WALNUT STREET, COLMAR PA 18915
Michael Kealey	officer: SVP, Product	C/O DORMAN PRODUCTS, INC., 3400 EAST WALNUT STREET, COLMAR PA 18915
Lisa M Bachmann	director	300 PHILLIPI ROAD, COLUMBUS OH 43228
Joseph P. Braun	officer: SVP and General Counsel	C/O DORMAN PRODUCTS, INC., 3400 EAST WALNUT STREET, COLMAR PA 18915