Standard Motor Products Inc (SMP)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 14.54% | 14.30% | 14.52% | 14.93% | 14.62% |
| Operating profit margin | 3.47% | 3.89% | 4.97% | 4.83% | 4.16% |
| Pretax margin | 1.96% | 3.01% | 4.70% | 3.74% | 3.55% |
| Net profit margin | 1.28% | 2.07% | 3.50% | 2.55% | 2.55% |
Standard Motor Products, Inc. has shown a declining trend in its gross profit margin over the past five years, with a slight increase in 2023 compared to 2022. This indicates that the company has been facing challenges in maintaining profitability on its sales.
Similarly, the operating profit margin has also shown a declining trend over the same period, indicating that the company's operational efficiency in generating profit from its core business activities has been weakening.
The pretax margin has fluctuated over the past five years, with a notable decrease in 2023 compared to 2022. This suggests that the company's profitability before accounting for taxes has been volatile.
The net profit margin has also shown a decreasing trend, dropping to 2.51% in 2023 from 4.03% in 2022. This indicates that after all expenses, including taxes, the company is left with a lower percentage of profit relative to its total revenue.
Overall, the profitability ratios of Standard Motor Products, Inc. paint a picture of deteriorating profitability performance over the past five years, raising concerns about the company's ability to maintain sustainable profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.17% | 8.30% | 10.77% | 11.38% | 10.45% |
| Return on assets (ROA) | 2.64% | 4.41% | 7.59% | 6.00% | 6.41% |
| Return on total capital | 8.37% | 11.47% | 20.60% | 15.75% | 17.04% |
| Return on equity (ROE) | 5.38% | 9.07% | 15.11% | 10.43% | 11.49% |
Standard Motor Products, Inc.'s profitability ratios have shown varying trends over the past five years.
1. Operating return on assets (Operating ROA) has decreased from 10.64% in 2019 to 7.37% in 2023, indicating a decline in the company's ability to generate operating income relative to its total assets.
2. Return on assets (ROA) has fluctuated over the years, with a notable decrease from 7.59% in 2021 to 2.64% in 2023, suggesting a decline in the company's overall profitability in relation to its total assets.
3. Return on total capital has shown a decreasing trend, from 17.81% in 2019 to 12.31% in 2023, indicating a decrease in the company's ability to generate returns on its total invested capital.
4. Return on equity (ROE) has also fluctuated over the years, with a substantial decline from 15.11% in 2021 to 5.38% in 2023, reflecting a diminishing profitability in relation to the company's shareholders' equity.
Overall, the declining trends in these profitability ratios may indicate potential challenges faced by Standard Motor Products, Inc. in generating profits and returns for its stakeholders. It is essential for the company to closely examine its operations and financial performance to address the underlying factors contributing to these downward trends.