Standard Motor Products Inc (SMP)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 73,989 | 81,716 | 98,332 | 130,465 | 107,379 |
| Revenue | US$ in thousands | 1,463,850 | 1,358,270 | 1,371,820 | 1,298,820 | 1,128,590 |
| Pretax margin | 5.05% | 6.02% | 7.17% | 10.04% | 9.51% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $73,989K ÷ $1,463,850K
= 5.05%
Standard Motor Products Inc's pretax margin has shown a fluctuating trend over the past five years, with slight variations in performance. It increased from 9.51% in 2020 to 10.04% in 2021, indicating improved profitability. However, in 2022, the pretax margin decreased to 7.17%, followed by a further decline to 6.02% in 2023. This downward trend continued in 2024, with the pretax margin dropping to 5.05%.
The decreasing pretax margins suggest potential challenges in maintaining profitability or controlling operating expenses relative to revenue. It is important for the company to closely monitor its cost structure and revenue generation to ensure sustainable profitability levels in the future. Further analysis of the underlying factors driving these fluctuations would be beneficial in identifying areas for improvement and strategic decision-making.
Peer comparison
Dec 31, 2024