Standard Motor Products Inc (SMP)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	92,677	98,442	97,251	97,966	104,135	112,635	117,558	126,590	128,999	135,374	144,800	123,896	108,895	95,814	79,154	90,861	94,495	95,422	91,296	86,918
Total assets	US$ in thousands	1,293,050	1,299,930	1,302,140	1,320,020	1,254,930	1,318,730	1,326,550	1,310,410	1,197,960	1,195,730	1,155,280	976,482	956,540	950,997	944,765	940,711	903,854	920,683	969,527	912,734
Operating ROA		7.17%	7.57%	7.47%	7.42%	8.30%	8.54%	8.86%	9.66%	10.77%	11.32%	12.53%	12.69%	11.38%	10.08%	8.38%	9.66%	10.45%	10.36%	9.42%	9.52%

December 31, 2023 calculation

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

Standard Motor Products, Inc.'s operating return on assets (operating ROA) has experienced a slight decline over the past year, decreasing from 9.69% in Q1 2022 to 7.37% in Q4 2023. This downward trend suggests that the company may be facing challenges in generating operating profits relative to its total assets. It is important for the company to closely monitor and address the factors influencing this decline in operating ROA to ensure sustainable profitability and efficient asset utilization in the future.