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

Dorman Products (Dorman Products) Operating Income : $251 Mil (TTM As of Mar. 2024)


View and export this data going back to 1991. Start your Free Trial

What is Dorman Products Operating Income?

Dorman Products's Operating Income for the three months ended in Mar. 2024 was $54 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 was $251 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Dorman Products's Operating Income for the three months ended in Mar. 2024 was $54 Mil. Dorman Products's Revenue for the three months ended in Mar. 2024 was $469 Mil. Therefore, Dorman Products's Operating Margin % for the quarter that ended in Mar. 2024 was 11.61%.

Warning Sign:

Dorman Products Inc operating margin has been in a 5-year decline. The average rate of decline per year is -6.8%.

Dorman Products's 5-Year average Growth Rate for Operating Margin % was -6.80% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Dorman Products's annualized ROC % for the quarter that ended in Mar. 2024 was 8.89%. Dorman Products's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 was 21.27%.


Dorman Products Operating Income Historical Data

The historical data trend for Dorman Products's Operating Income 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 Operating Income Chart

Dorman Products Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 105.83 133.37 171.55 171.05 214.76

Dorman Products Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 18.11 55.20 64.21 77.24 54.44

Dorman Products Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $251 Mil.

* 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.


Dorman Products  (NAS:DORM) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Dorman Products's annualized ROC % for the quarter that ended in Mar. 2024 is calculated as:

ROC % (Q: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Mar. 2024 ))/ count )
=217.752 * ( 1 - 25.04% )/( (1840.798 + 1831.95)/ 2 )
=163.2268992/1836.374
=8.89 %

where

Invested Capital(Q: Dec. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2292.407 - 414.795 - ( 36.814 - max(0, 547.151 - 1233.709+36.814))
=1840.798

Invested Capital(Q: Mar. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2220.137 - 353.754 - ( 34.433 - max(0, 465.62 - 1162.819+34.433))
=1831.95

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

2. Joel Greenblatt's definition of Return on Capital:

Dorman Products's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2024 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2024 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2023  Q: Mar. 2024
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=217.592/( ( (263.589 + max(758.129, 0)) + (268.153 + max(756.426, 0)) )/ 2 )
=217.592/( ( 1021.718 + 1024.579 )/ 2 )
=217.592/1023.1485
=21.27 %

where Working Capital is:

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(526.867 + 637.375 + 32.653) - (414.795 + 0 + 23.971)
=758.129

Working Capital(Q: Mar. 2024 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(486.352 + 619.972 + 22.062) - (353.754 + 0 + 18.206)
=756.426

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Dorman Products's Operating Margin % for the quarter that ended in Mar. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2024 )/Revenue (Q: Mar. 2024 )
=54.438/468.701
=11.61 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Dorman Products Operating Income Related Terms

Thank you for viewing the detailed overview of Dorman Products's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.


Dorman Products (Dorman Products) Business Description

Traded in Other Exchanges
N/A
Address
3400 East Walnut Street, Colmar, PA, USA, 18915
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