Standard Motor Products Inc (SMP)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 44,426 | 32,526 | 21,150 | 21,755 | 19,488 |
| Short-term investments | US$ in thousands | -92 | 1,944 | — | — | 40,507 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 436,472 | 304,263 | 323,131 | 476,369 | 302,602 |
| Quick ratio | 0.10 | 0.11 | 0.07 | 0.05 | 0.20 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($44,426K
+ $-92K
+ $—K)
÷ $436,472K
= 0.10
The quick ratio of Standard Motor Products Inc has shown a fluctuating trend over the years. It was 0.20 as of December 31, 2020, indicating that the company had $0.20 of liquid assets available to cover each dollar of current liabilities. However, this ratio decreased significantly to 0.05 as of December 31, 2021, suggesting a weakening liquidity position.
Subsequently, the quick ratio improved slightly to 0.07 as of December 31, 2022, but remained below the industry standard, indicating potential difficulties in meeting short-term obligations without relying on inventory.
By December 31, 2023, the quick ratio further increased to 0.11, showing a positive trend in the company's ability to cover its current liabilities. However, it is important to note that the quick ratio decreased slightly to 0.10 as of December 31, 2024.
Overall, the quick ratio of Standard Motor Products Inc reflects fluctuations in the company's liquidity position, indicating a varying ability to meet short-term obligations with its readily available assets.
Peer comparison
Dec 31, 2024