Standard Motor Products Inc (SMP)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 32,526 | 21,150 | 21,755 | 19,488 | 10,372 |
| Short-term investments | US$ in thousands | 1,944 | — | — | 40,507 | — |
| Receivables | US$ in thousands | 160,282 | 167,638 | 180,604 | 198,039 | 135,516 |
| Total current liabilities | US$ in thousands | 304,263 | 323,131 | 476,369 | 302,602 | 300,588 |
| Quick ratio | 0.64 | 0.58 | 0.42 | 0.85 | 0.49 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($32,526K
+ $1,944K
+ $160,282K)
÷ $304,263K
= 0.64
The quick ratio of Standard Motor Products, Inc. has shown some fluctuations over the past five years. In 2023 and 2022, the quick ratio remained stable at 0.72, indicating that the company had $0.72 of highly liquid assets available to cover each $1 of current liabilities.
In 2021, the quick ratio decreased to 0.51, suggesting a potential liquidity challenge as the company had fewer liquid assets relative to its current liabilities. However, the ratio improved in 2020 to 0.77, indicating a better ability to meet short-term obligations using quick assets.
The quick ratio was relatively lower in 2019 at 0.52, signaling a similar liquidity issue as in 2021. Overall, while the company's quick ratio has shown some variability, it is essential to assess the trend over multiple years to understand the company's liquidity position comprehensively.
Peer comparison
Dec 31, 2023