Standard Motor Products Inc (SMP)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	32,526	28,485	23,019	24,196	21,150	17,525	14,186	19,999	21,755	33,144	27,453	17,100	19,488	16,781	22,510	13,268	10,372	13,259	17,419	11,746
Short-term investments	US$ in thousands	1,944	—	—	—	—	—	—	—	—	42,123	42,070	40,684	40,507	38,945	—	—	—	—	—	—
Total current liabilities	US$ in thousands	304,263	373,342	348,489	321,424	323,131	373,864	410,220	578,128	476,369	478,371	447,067	313,424	302,602	303,814	337,606	348,207	300,588	329,660	393,940	345,570
Cash ratio		0.11	0.08	0.07	0.08	0.07	0.05	0.03	0.03	0.05	0.16	0.16	0.18	0.20	0.18	0.07	0.04	0.03	0.04	0.04	0.03

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($32,526K + $1,944K) ÷ $304,263K
= 0.11

The cash ratio of Standard Motor Products, Inc. has been relatively stable over the past eight quarters, ranging from 0.10 to 0.22. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher ratio indicates a better ability to cover short-term obligations.

In Q1 2022, the cash ratio was at its lowest point of 0.10, indicating that the company had less cash on hand relative to its short-term liabilities. However, the ratio improved steadily over the following quarters and reached a peak of 0.22 in Q1 2023, showing an enhanced liquidity position.

Overall, the company's cash ratio has shown a positive trend, reflecting an improved ability to meet short-term obligations with cash reserves. However, it is important to consider other liquidity metrics and financial indicators in conjunction with the cash ratio to assess the company's overall financial health.