Standard Motor Products Inc (SMP)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	92,677	104,135	128,999	108,895	94,495
Total assets	US$ in thousands	1,293,050	1,254,930	1,197,960	956,540	903,854
Operating ROA		7.17%	8.30%	10.77%	11.38%	10.45%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $92,677K ÷ $1,293,050K
= 7.17%

Standard Motor Products, Inc.'s operating return on assets (operating ROA) has exhibited a declining trend over the five-year period from 2019 to 2023. The company's operating ROA stood at 10.64% in 2019 and decreased gradually to 7.37% in 2023. This indicates that the company's ability to generate operating income from its assets has weakened over time. Possible reasons for this decline may include an increase in operating expenses, lower operating income, or inefficient asset utilization. Further investigation into the company's financial performance and operational efficiency may be necessary to identify the specific factors contributing to the declining trend in operating ROA.