Standard Motor Products Inc (SMP)

Total asset turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 1,463,850 1,358,270 1,371,820 1,298,820 1,128,590
Total assets US$ in thousands 1,814,130 1,293,050 1,254,930 1,197,960 956,540
Total asset turnover 0.81 1.05 1.09 1.08 1.18

December 31, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $1,463,850K ÷ $1,814,130K
= 0.81

Standard Motor Products Inc's total asset turnover has been showing a declining trend over the years. From 1.18 in December 31, 2020, it decreased to 0.81 by December 31, 2024. This indicates that the company is generating less revenue for each dollar invested in assets. A lower total asset turnover could suggest inefficiency in asset utilization and might require further investigation to identify the underlying causes. The company may need to assess its operational efficiency and look for ways to improve asset turnover to enhance overall financial performance.