Standard Motor Products Inc (SMP)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	2,674,000	2,675,860	2,595,400	2,254,610	2,270,140
Receivables	US$ in thousands	160,282	167,638	180,604	198,039	135,516
Receivables turnover		16.68	15.96	14.37	11.38	16.75

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $2,674,000K ÷ $160,282K
= 16.68

Standard Motor Products, Inc.'s receivables turnover has displayed some fluctuations over the past five years. In 2023, the company's receivables turnover improved to 8.47, indicating that the company collected its accounts receivable approximately 8.47 times during the year. This is an improvement from the previous year, where the turnover was 8.18. The higher turnover in 2023 suggests that the company is managing its accounts receivable more efficiently compared to prior years, which is a positive sign of effective credit management.

In 2021 and 2020, the receivables turnover ratios were 7.19 and 5.70, respectively, which were relatively lower than the recent years. A lower receivables turnover may indicate that the company is taking longer to collect payments from its customers, potentially leading to liquidity issues. It is important for the company to closely monitor and improve its receivables turnover to ensure a healthy cash flow and financial stability.

The receivables turnover in 2019 was relatively high at 8.40, showing that the company was efficient in collecting its accounts receivable that year. Overall, fluctuations in the receivables turnover ratio over the years highlight the importance of continuous monitoring and management of accounts receivable to optimize cash flow and financial performance.