Standard Motor Products Inc (SMP)

Pretax margin

		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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	52,516	57,102	59,574	70,396	80,557	93,248	109,653	119,795	121,930	115,525	122,423	101,009	84,355	82,961	64,650	75,968	80,662	72,534	73,167	68,570
Revenue (ttm)	US$ in thousands	2,701,423	2,718,401	2,708,286	2,722,422	2,715,865	2,739,824	2,720,702	2,687,356	2,595,396	2,259,260	2,206,048	2,017,497	1,972,331	1,930,845	1,858,027	1,971,543	2,030,255	2,035,973	2,014,034	1,977,475
Pretax margin		1.94%	2.10%	2.20%	2.59%	2.97%	3.40%	4.03%	4.46%	4.70%	5.11%	5.55%	5.01%	4.28%	4.30%	3.48%	3.85%	3.97%	3.56%	3.63%	3.47%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $52,516K ÷ $2,701,423K
= 1.94%

Standard Motor Products, Inc.'s pretax margin has shown a consistent downward trend over the past eight quarters. In Q1 2022, the pretax margin was the highest at 9.54%, but it has gradually decreased since then to 6.02% in Q4 2023. This decline may indicate decreasing profitability before accounting for taxes. Factors such as increasing operating expenses, pricing pressures, or inefficiencies in cost management could be contributing to this downward trend. Management should closely monitor and address these factors to improve the company's overall profitability.