Standard Motor Products Inc (SMP)

Payables 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
Payables	US$ in thousands	107,455	103,237	94,657	94,372	89,247	103,894	140,082	139,392	137,167	128,808	119,632	108,536	100,018	79,260	72,133	81,266	92,535	71,139	89,149	96,878
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

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,274,159K ÷ $107,455K
= 11.86

Standard Motor Products, Inc. has shown fluctuations in its payables turnover ratio over the past eight quarters. The payables turnover ratio indicates how efficiently the company is managing its accounts payable. A higher ratio suggests that the company is paying off its suppliers more quickly.

In the most recent quarter, Q4 2023, the payables turnover ratio was 9.02, indicating that the company takes approximately 9.02 times to pay off its suppliers during the year. This ratio has decreased from the previous quarter but remains relatively stable compared to earlier quarters.

Overall, the trend in the payables turnover ratio has shown some variability but has generally been within a range of 6.90 to 11.08 over the past two years. It is essential for the company to closely monitor this ratio to ensure efficient management of its accounts payable and maintain positive relationships with its suppliers.