Standard Motor Products Inc (SMP)

Current 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
Total current assets	US$ in thousands	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	540,557	557,056	605,712	580,357
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
Current ratio		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	1.80	1.69	1.54	1.68

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $744,223K ÷ $304,263K
= 2.45

Standard Motor Products, Inc.'s current ratio has shown fluctuating trends over the past eight quarters. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A higher current ratio typically indicates a stronger liquidity position.

In Q4 2023, the current ratio stands at 2.45, which indicates that the company has $2.45 in current assets for every dollar of current liabilities. This signifies an improvement compared to the previous quarter, Q3 2023, where the ratio was 2.04. However, it is slightly lower than Q1 2023 and Q4 2022, where the ratios were 2.50 and 2.36 respectively.

The highest current ratio over the past eight quarters was in Q1 2023 at 2.50, suggesting a healthy liquidity position at that time. In contrast, the lowest current ratio was in Q1 2022 at 1.42, which may indicate potential liquidity concerns.

Overall, the company has demonstrated a relatively stable current ratio above 2.00 in recent quarters, which generally indicates that Standard Motor Products, Inc. has sufficient current assets to cover its short-term obligations. Tracking this ratio over time can provide insights into the company's liquidity management and financial health.