Standard Motor Products Inc (SMP)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,040,530 | 969,446 | 989,276 | 921,885 | 791,933 |
| Inventory | US$ in thousands | 624,913 | 525,315 | 548,410 | 491,023 | 365,134 |
| Inventory turnover | 1.67 | 1.85 | 1.80 | 1.88 | 2.17 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,040,530K ÷ $624,913K
= 1.67
The inventory turnover of Standard Motor Products Inc has exhibited a decline over the past five years. Starting at 2.17 in December 2020, the ratio decreased to 1.88 by December 2021, further dropping to 1.80 in December 2022. Although there was a slight uptick to 1.85 in December 2023, it decreased again to 1.67 by December 2024.
A decreasing trend in inventory turnover can indicate potential issues such as overstocking, slow-moving inventory, or inefficient inventory management. It may also suggest decreased sales volume relative to the level of inventory held. Standard Motor Products Inc should carefully analyze its inventory management practices to improve efficiency and optimize working capital utilization.
Peer comparison
Dec 31, 2024