Standard Motor Products Inc (SMP)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 52,516 | 80,557 | 121,930 | 84,355 | 80,662 |
| Revenue | US$ in thousands | 2,674,000 | 2,675,860 | 2,595,400 | 2,254,610 | 2,270,140 |
| Pretax margin | 1.96% | 3.01% | 4.70% | 3.74% | 3.55% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $52,516K ÷ $2,674,000K
= 1.96%
The pretax margin of Standard Motor Products, Inc. has shown some fluctuations over the past five years. In 2023, the pretax margin decreased to 6.02% from 7.17% in 2022. This decline indicates a decrease in the company's ability to generate profit before taxes as a percentage of its total revenue for the year.
Comparing the pretax margin for 2023 to earlier years, it is evident that the company's performance in terms of pre-tax profitability was lower in 2023 compared to 2021 when the pretax margin was at 10.04%. However, it was slightly higher than in 2020 and 2019 when the pretax margins were 9.51% and 8.07%, respectively.
The downward trend in pretax margin from 2022 to 2023 may raise concerns about the company's operational efficiency and profitability. Further analysis of the company's cost structure, revenue streams, and overall financial performance would be necessary to identify the specific factors contributing to this decline and to determine appropriate strategies for improvement.
Peer comparison
Dec 31, 2023