Standard Motor Products Inc (SMP)

Number of days of payables

		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
Payables turnover		11.86	12.46	13.55	13.65	14.30	12.22	8.95	8.80	8.59	8.89	9.27	9.54	10.28	12.61	13.59	12.62	11.36	14.90	11.81	10.72
Number of days of payables	days	30.78	29.30	26.95	26.75	25.52	29.87	40.78	41.45	42.48	41.06	39.39	38.27	35.52	28.95	26.86	28.92	32.13	24.50	30.90	34.05

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 11.86
= 30.78

Standard Motor Products, Inc.'s number of days of payables has shown some variability over the past eight quarters. In Q4 2023, the company's payables were outstanding for an average of 40.46 days, which represents an increase from the previous quarter (Q3 2023) where payables were outstanding for 38.50 days. This suggests that the company took slightly longer to pay off its obligations in Q4 2023.

Looking back further, in Q2 and Q1 2023, the number of days of payables was 35.19 and 34.69 days respectively, indicating a decreasing trend during that period. This implies that the company was more efficient in paying off its payables during the first half of 2023.

Comparing the current figures to the same quarter in the previous year (Q4 2022), where payables were outstanding for 32.93 days, there is a noticeable increase in the number of days required to settle payables. This suggests a potential shift in the company's payment practices or the management of its working capital during this time period.

Moreover, it is interesting to note the significant increase in the number of days of payables seen in Q2 and Q3 2022, where it peaked at 52.05 and 52.88 days respectively. This could indicate a change in the company's payment terms with suppliers or other external factors impacting their ability to settle obligations promptly.

Overall, fluctuations in Standard Motor Products, Inc.'s number of days of payables over the past eight quarters signify changes in the company's working capital management and vendor relationship strategies, which could have implications for its liquidity and financial performance. Monitoring this metric over time can provide valuable insights into the company's operational efficiency and financial health.