Standard Motor Products Inc (SMP)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	1,042,728	1,009,588	1,003,342	974,566	969,446	978,855	981,791	993,046	989,276	991,848	982,364	962,107	921,885	889,262	860,018	800,795	791,933	771,757	751,531	784,217
Inventory	US$ in thousands	641,076	520,858	526,302	538,709	525,315	501,635	518,856	542,665	548,410	555,795	572,820	556,642	491,023	438,024	426,946	411,984	365,134	331,354	372,183	390,314
Inventory turnover		1.63	1.94	1.91	1.81	1.85	1.95	1.89	1.83	1.80	1.78	1.71	1.73	1.88	2.03	2.01	1.94	2.17	2.33	2.02	2.01

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,042,728K ÷ $641,076K
= 1.63

Standard Motor Products Inc's inventory turnover has fluctuated over the years. In general, inventory turnover measures how efficiently a company manages its inventory by showing how many times it sells and replaces its inventory during a specific period.

Based on the data provided, the inventory turnover for Standard Motor Products Inc ranged from a low of 1.63 on December 31, 2024, to a high of 2.33 on September 30, 2020, indicating some variation in the company's inventory management efficiency.

A higher inventory turnover ratio typically indicates that a company is selling its inventory at a faster rate, which can signify effective sales and operational planning. Conversely, a lower ratio may suggest slower inventory movement, potentially leading to issues like excess inventory or obsolete stock.

It appears that Standard Motor Products Inc's inventory turnover has experienced some fluctuations but has generally stayed within the range of 1.63 to 2.33. Further analysis would be needed to determine the underlying reasons for these fluctuations and assess the company's overall inventory management effectiveness.