Standard Motor Products Inc (SMP)

Fixed asset turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	2,701,423	2,718,401	2,708,286	2,722,422	2,715,865	2,739,824	2,720,702	2,687,356	2,595,396	2,259,260	2,206,048	2,017,497	1,972,331	1,930,845	1,858,027	1,971,543	2,030,255	2,035,973	2,014,034	1,977,475
Property, plant and equipment	US$ in thousands	121,872	113,012	107,590	107,123	107,148	104,199	104,931	102,984	102,786	100,787	96,762	88,563	89,105	88,288	88,022	88,573	89,649	88,835	89,197	88,850
Fixed asset turnover		22.17	24.05	25.17	25.41	25.35	26.29	25.93	26.09	25.25	22.42	22.80	22.78	22.13	21.87	21.11	22.26	22.65	22.92	22.58	22.26

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,701,423K ÷ $121,872K
= 22.17

Standard Motor Products, Inc. has exhibited relatively consistent fixed asset turnover ratios over the past eight quarters, ranging between 11.15 and 13.18. The fixed asset turnover ratio measures the efficiency of the company in generating revenue from its fixed assets. A higher ratio suggests that the company is effectively utilizing its fixed assets to generate sales.

The average fixed asset turnover ratio for Standard Motor Products, Inc. over the past eight quarters is approximately 12.49, indicating that, on average, the company generates revenue 12.49 times for every dollar invested in fixed assets. This implies that the company efficiently utilizes its fixed assets to drive sales.

The slight fluctuations observed in the fixed asset turnover ratio over the quarters may be indicative of changes in the company's operational efficiency or shifts in its business strategy. However, the overall trend remains relatively stable, suggesting that Standard Motor Products, Inc. has maintained a consistent level of efficiency in utilizing its fixed assets to generate revenue during the period under review.

Further analysis in conjunction with other financial metrics and industry benchmarks would provide a more comprehensive understanding of how Standard Motor Products, Inc. is performing in terms of its fixed asset utilization efficiency.