Standard Motor Products Inc (SMP)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,674,000	2,675,860	2,595,400	2,254,610	2,270,140
Property, plant and equipment	US$ in thousands	121,872	107,148	102,786	89,105	89,649
Fixed asset turnover		21.94	24.97	25.25	25.30	25.32

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,674,000K ÷ $121,872K
= 21.94

Standard Motor Products, Inc.'s fixed asset turnover has been relatively stable over the past five years, ranging from 11.15 in 2023 to 12.69 in 2019. This ratio measures the company's efficiency in generating sales revenue from its investment in fixed assets. A high fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate revenue.

Although there was a slight decrease in the fixed asset turnover ratio in 2023 compared to the previous years, the company still demonstrates a strong ability to generate sales relative to its investment in fixed assets. This consistency suggests that Standard Motor Products, Inc. has been successful in efficiently managing and utilizing its fixed assets to drive revenue growth.

It is important to continue monitoring this ratio in future periods to ensure that the company's fixed asset efficiency remains stable and in line with industry benchmarks. Overall, the company's performance in terms of fixed asset turnover reflects a sound operational efficiency in utilizing its fixed assets to drive revenue generation.