Standard Motor Products Inc (SMP)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 28.92% | 28.63% | 27.89% | 29.02% | 29.83% |
| Operating profit margin | 5.51% | 6.82% | 7.59% | 9.93% | 9.65% |
| Pretax margin | 5.05% | 6.02% | 7.17% | 10.04% | 9.51% |
| Net profit margin | 1.88% | 2.51% | 4.03% | 7.00% | 7.13% |
Standard Motor Products Inc's profitability ratios have experienced a declining trend over the years. The gross profit margin has decreased from 29.83% in 2020 to 28.92% in 2024, indicating a slight erosion in the company's ability to generate profits after accounting for the cost of goods sold.
Similarly, the operating profit margin has shown a consistent decline, dropping from 9.65% in 2020 to 5.51% in 2024. This suggests decreasing operational efficiency and profitability of the company's core business activities.
The pretax margin has also decreased steadily from 9.51% in 2020 to 5.05% in 2024, indicating a reduction in the company's profitability before accounting for income taxes.
The net profit margin, a key indicator of overall profitability, has experienced a significant decrease from 7.13% in 2020 to 1.88% in 2024. This downward trend highlights challenges in maintaining profitability after considering all expenses, including taxes.
Overall, the declining trend in profitability ratios for Standard Motor Products Inc suggests potential challenges in maintaining and growing its bottom line in recent years. The company may need to evaluate its cost structure, operational efficiency, and revenue generation strategies to improve its profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.44% | 7.17% | 8.30% | 10.77% | 11.38% |
| Return on assets (ROA) | 1.52% | 2.64% | 4.41% | 7.59% | 8.41% |
| Return on total capital | 14.21% | 14.59% | 17.86% | 22.02% | 19.94% |
| Return on equity (ROE) | 4.47% | 5.38% | 9.07% | 15.11% | 14.62% |
Standard Motor Products Inc's profitability ratios have shown a decline over the past five years.
- Operating return on assets (Operating ROA) decreased from 11.38% in 2020 to 4.44% in 2024, indicating a reduction in the company's ability to generate operating income from its assets.
- Return on assets (ROA) also witnessed a decline from 8.41% in 2020 to 1.52% in 2024, reflecting a decrease in the company's overall profitability in relation to its total assets.
- Return on total capital decreased from 19.94% in 2020 to 14.21% in 2024, showing a diminishing ability to generate returns for both debt and equity holders.
- Return on equity (ROE) dropped from 14.62% in 2020 to 4.47% in 2024, indicating a declining profitability for the company's shareholders.
In summary, Standard Motor Products Inc's profitability has weakened significantly over the years, as reflected in the declining trend of its profitability ratios, raising concerns about the company's operational efficiency and overall financial performance.