Standard Motor Products Inc (SMP)

Short-term

Turnover ratios

Standard Motor Products Inc's activity ratios provide insight into how efficiently the company is managing its resources.

1. Inventory Turnover:
- The inventory turnover ratio declined from 2.17 in 2020 to 1.67 in 2024. This indicates that the company took longer to sell its inventory in 2024 compared to 2020. A decreasing ratio may suggest potential inventory management issues or slower sales.

2. Receivables Turnover:
- The receivables turnover ratio was not provided in the data, which makes it difficult to assess how quickly the company is collecting its accounts receivable. A higher turnover ratio would typically indicate better efficiency in collecting payments from customers.

3. Payables Turnover:
- Similar to receivables turnover, the payables turnover ratio was not provided in the data. This ratio would have shown how quickly the company is paying its suppliers. A higher ratio would suggest that the company is efficiently managing its payables.

4. Working Capital Turnover:
- The working capital turnover ratio fluctuated over the years, from 3.81 in 2020 to 3.02 in 2024. A declining ratio may indicate that the company is becoming less efficient at generating sales revenue relative to the working capital invested.

In summary, while the data provides insights into the company's inventory turnover and working capital efficiency, the lack of information on receivables and payables turnover ratios limits a comprehensive assessment of Standard Motor Products Inc's overall activity efficiency.

---

Average number of days

Standard Motor Products Inc's Days of Inventory on Hand (DOH) has been on an increasing trend from 168.29 days in December 2020 to 219.21 days in December 2024. This indicates that the company is taking longer to sell its inventory, which may tie up capital and increase carrying costs.

For Days of Sales Outstanding (DSO) and Number of Days of Payables, the data is not available (marked as "— days"), which limits our ability to assess the efficiency of the company in collecting receivables or managing payables over the years.

Overall, based on the available data, the increasing trend in Days of Inventory on Hand raises concerns about Standard Motor Products Inc's inventory management efficiency and potential liquidity issues if inventory is not being converted into sales in a timely manner. Further information on DSO and Payables turnover could provide a more comprehensive picture of the company's working capital management.

---

Long-term

The fixed asset turnover ratio for Standard Motor Products Inc has shown some fluctuation over the years. In 2020, the ratio was relatively high at 12.67, indicating that the company generated $12.67 in sales for every dollar invested in fixed assets. However, this ratio decreased to 9.07 in 2021 before increasing to 12.80 in 2022. The lack of data for 2023 and 2024 makes it difficult to assess the trend accurately.

On the other hand, the total asset turnover ratio reflects the company's overall efficiency in utilizing its assets to generate sales. Standard Motor Products Inc's total asset turnover ratio has been relatively stable, ranging from 1.08 in 2021 to 1.05 in 2023 and dropping to 0.81 in 2024. This suggests that the company generated $1.08 to $1.05 in sales for every dollar of total assets in the years analyzed.

Overall, while the fixed asset turnover ratio showed more volatility, the total asset turnover ratio remained relatively steady, indicating that Standard Motor Products Inc may have been effective in managing its assets to generate sales during the period examined. Further analysis would be necessary to understand the factors driving these fluctuations and the company's overall operational efficiency.