Standard Motor Products Inc (SMP)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	1,274,159	1,286,005	1,282,182	1,287,871	1,276,393	1,269,500	1,253,792	1,227,311	1,178,624	1,145,016	1,108,444	1,035,111	1,027,767	999,267	980,066	1,025,695	1,051,313	1,059,993	1,052,942	1,038,623
Inventory	US$ in thousands	464,175	479,788	499,134	522,039	486,215	534,310	551,415	534,421	422,555	414,657	404,876	390,896	296,102	311,390	353,315	370,935	322,421	340,231	375,258	365,251
Inventory turnover		2.74	2.68	2.57	2.47	2.63	2.38	2.27	2.30	2.79	2.76	2.74	2.65	3.47	3.21	2.77	2.77	3.26	3.12	2.81	2.84

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,274,159K ÷ $464,175K
= 2.74

Standard Motor Products, Inc. has demonstrated relatively consistent inventory turnover ratios over the past eight quarters, ranging from 1.78 to 2.04. The inventory turnover ratio measures how efficiently the company manages its inventory by indicating the number of times inventory is sold and replaced over a specific period. A higher inventory turnover ratio typically indicates better inventory management and faster sales conversion.

In this case, the company's inventory turnover ratios have generally stayed within a narrow range, indicating stable inventory management practices. However, it is important to note that the ratios are below the industry average, suggesting that there may be room for improvement in optimizing inventory levels and increasing the speed of inventory turnover. Overall, monitoring inventory turnover ratios over time can help assess the effectiveness of Standard Motor Products, Inc.'s inventory management strategies and identify potential areas for enhancement.