DORM (Dorman Products) Interest Coverage : 8.12 (As of Sep. 2024)

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What is Dorman Products Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Dorman Products's Operating Income for the three months ended in Sep. 2024 was $79 Mil. Dorman Products's Interest Expense for the three months ended in Sep. 2024 was $-10 Mil. Dorman Products's interest coverage for the quarter that ended in Sep. 2024 was 8.12. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Dorman Products's Interest Coverage or its related term are showing as below:

DORM' s Interest Coverage Range Over the Past 10 Years
Min: 4.47 Med: 567.39 Max: No Debt
Current: 6.76

DORM's Interest Coverage is ranked worse than
53.94% of 1029 companies
in the Vehicles & Parts industry
Industry Median: 7.94 vs DORM: 6.76

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Dorman Products Interest Coverage Historical Data

The historical data trend for Dorman Products's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Dorman Products Interest Coverage Chart

Dorman Products Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

Get a 7-Day Free Trial

458.13

222.66

79.35

10.98

4.47

Dorman Products Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Interest Coverage	Get a 7-Day Free Trial															5.26	6.82	5.13	7.10	8.12

Competitive Comparison of Dorman Products's Interest Coverage

For the Auto Parts subindustry, Dorman Products's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution in the Vehicles & Parts Industry

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

* The bar in red indicates where Dorman Products's Interest Coverage falls into.

Dorman Products Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

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

Here, for the fiscal year that ended in Dec. 2023, Dorman Products's Interest Expense was $-48 Mil. Its Operating Income was $215 Mil. And its Long-Term Debt & Capital Lease Obligation was $559 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	214.76	/	-48.061
	=	4.47

Dorman Products's Interest Coverage for the quarter that ended in Sep. 2024 is calculated as

Here, for the three months ended in Sep. 2024, Dorman Products's Interest Expense was $-10 Mil. Its Operating Income was $79 Mil. And its Long-Term Debt & Capital Lease Obligation was $549 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2024 )	/	Interest Expense (Q: Sep. 2024 )
	=	-1	*	79.271	/	-9.762
	=	8.12

The higher the ratio, the stronger the company's Financial Strength is.

Dorman Products (NAS:DORM) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Dorman Products Interest Coverage Related Terms

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

Dorman Products Business Description

Industry

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

Comparable Companies

Traded in Other Exchanges

RAB:Germany

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 in the United States.

Executives

John Mcknight	officer: SVP, Operations	3400 EAST WALNUT STREET, COLMAR PA 19103
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
Joseph P. Braun	officer: SVP and General Counsel	C/O DORMAN PRODUCTS, INC., 3400 EAST WALNUT STREET, COLMAR PA 18915
Donna M. Long	officer: SVP, CIO	3400 EAST WALNUT STREET, COLMAR PA 18915
Scott Leff	officer: SVP, CHRO	3400 EAST WALNUT STREET, COLMAR PA 18915
Steven L Berman	director, 10 percent owner, officer: President, COO
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
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
Paul E Anderson	officer: President, Heavy Duty	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