Standard Motor Products Inc (SMP)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 44,426 32,526 21,150 21,755 19,488
Short-term investments US$ in thousands -92 1,944 — — 40,507
Total current liabilities US$ in thousands 436,472 304,263 323,131 476,369 302,602
Cash ratio 0.10 0.11 0.07 0.05 0.20

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($44,426K + $-92K) ÷ $436,472K
= 0.10

The cash ratio of Standard Motor Products Inc has fluctuated over the past five years. In December 2020, the cash ratio was 0.20, indicating that the company had $0.20 in cash for every $1 of current liabilities. However, this ratio decreased to 0.05 by the end of 2021, which suggests a significant decrease in the company's ability to cover its short-term obligations with cash alone.

By December 2022, the cash ratio improved slightly to 0.07, indicating a slight increase in liquidity. This improvement continued into December 2023 when the cash ratio reached 0.11, showing that the company had better liquidity compared to the previous year.

However, by December 2024, the cash ratio had decreased to 0.10, implying a slight decrease in the company's ability to meet its short-term liabilities with cash. Overall, the trend in the cash ratio of Standard Motor Products Inc shows variability in liquidity levels over the five-year period, with some improvements in certain years but also some declines.