Standard Motor Products Inc (SMP)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	34,148	55,351	90,886	57,393	57,917
Total assets	US$ in thousands	1,293,050	1,254,930	1,197,960	956,540	903,854
ROA		2.64%	4.41%	7.59%	6.00%	6.41%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $34,148K ÷ $1,293,050K
= 2.64%

Standard Motor Products, Inc.'s return on assets (ROA) has shown a declining trend over the past five years. The ROA decreased from 6.35% in 2019 to 6.00% in 2020, further dropping to 7.59% in 2021, then to 4.41% in 2022, and finally to 2.64% in 2023. This decreasing trend indicates that the company's ability to generate profits from its assets has weakened over time. It is essential for the company to analyze the factors contributing to this decline in ROA and implement strategies to improve asset utilization efficiency and overall profitability.