Standard Motor Products Inc (SMP)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 80,624 | 92,677 | 104,135 | 128,999 | 108,895 |
| Revenue | US$ in thousands | 1,463,850 | 1,358,270 | 1,371,820 | 1,298,820 | 1,128,590 |
| Operating profit margin | 5.51% | 6.82% | 7.59% | 9.93% | 9.65% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $80,624K ÷ $1,463,850K
= 5.51%
Standard Motor Products Inc's operating profit margin has shown a gradual decline over the past five years, from 9.65% as of December 31, 2020, to 5.51% as of December 31, 2024. This indicates that the company's ability to generate profits from its core operations has weakened over time. A declining operating profit margin could be a cause for concern as it may suggest efficiency challenges, increased operating expenses, or pricing pressures. It is important for the company to closely monitor and address the factors contributing to this downward trend to enhance its operational performance and profitability in the future.
Peer comparison
Dec 31, 2024