Standard Motor Products Inc (SMP)

Current ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Total current assets US$ in thousands 921,924 793,209 816,655 796,436 744,223 762,413 787,883 803,854 762,439 829,673 842,861 819,415 711,205 710,857 680,669 617,036 598,536 596,274 589,898 584,689
Total current liabilities US$ in thousands 436,472 352,520 332,166 299,212 304,263 373,342 348,489 321,424 323,131 373,864 410,220 578,128 476,369 478,371 447,067 313,424 302,602 303,814 337,606 348,207
Current ratio 2.11 2.25 2.46 2.66 2.45 2.04 2.26 2.50 2.36 2.22 2.05 1.42 1.49 1.49 1.52 1.97 1.98 1.96 1.75 1.68

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $921,924K ÷ $436,472K
= 2.11

Standard Motor Products Inc has shown fluctuations in its current ratio over the past few years. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has generally been above 1, indicating that the company has had sufficient current assets to meet its short-term obligations.

In the first quarter of 2020, the current ratio was 1.68, showing a slight improvement to 1.75 in the subsequent quarter. The ratio continued to increase steadily, reaching a peak of 2.66 by the first quarter of 2024. This upward trend suggests that the company's liquidity position strengthened over this period.

There were, however, some periods of decline in the current ratio, notably in the second half of 2021 and the first half of 2022, where the ratio dropped to around 1.4-1.5. These fluctuations may indicate varying levels of liquidity challenges or changes in the company's working capital management during those periods.

Overall, the current ratio of Standard Motor Products Inc has shown a generally positive trend, with the company's ability to meet short-term obligations gradually improving over the years, reaching a comfortable level above 2 by the end of 2024.