Standard Motor Products Inc (SMP)

Fixed asset turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Revenue (ttm) US$ in thousands 1,463,849 1,411,253 1,398,401 1,361,647 1,358,272 1,375,715 1,370,675 1,377,012 1,371,815 1,373,493 1,362,430 1,345,094 1,298,816 1,271,677 1,244,976 1,150,839 1,128,588 1,087,102 1,051,216 1,108,449
Property, plant and equipment US$ in thousands — — — — — 212,079 107,590 107,123 107,148 151,367 144,758 102,984 143,255 143,245 136,017 88,563 89,105 88,288 88,022 88,573
Fixed asset turnover — — — — — 6.49 12.74 12.85 12.80 9.07 9.41 13.06 9.07 8.88 9.15 12.99 12.67 12.31 11.94 12.51

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,463,849K ÷ $—K
= —

The fixed asset turnover ratio of Standard Motor Products Inc has shown variability over the periods provided. The ratio measures how efficiently the company is generating sales revenue from its investment in fixed assets.

In the recent quarters, the fixed asset turnover ratio has fluctuated between 6.49 and 13.06. A higher ratio indicates that the company is effectively using its fixed assets to generate sales. For instance, the ratio of 13.06 in March 31, 2022, suggests that the company generated $13.06 in sales for every dollar invested in fixed assets during that period.

However, there are some instances, such as in September 30, 2021, where the ratio decreased significantly to 8.88, indicating a potential decrease in efficiency in utilizing fixed assets to generate sales. This could be a cause for concern as it may imply that the company is not effectively utilizing its fixed assets to drive revenue growth.

It is important for stakeholders to monitor this ratio over time to assess the company's operational efficiency and capital allocation decisions. Fluctuations in the fixed asset turnover ratio can provide insights into how effectively the company is managing its fixed assets to drive revenue and profitability.