Standard Motor Products Inc (SMP)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 27,500 | 34,148 | 55,351 | 90,886 | 80,417 |
| Total assets | US$ in thousands | 1,814,130 | 1,293,050 | 1,254,930 | 1,197,960 | 956,540 |
| ROA | 1.52% | 2.64% | 4.41% | 7.59% | 8.41% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $27,500K ÷ $1,814,130K
= 1.52%
Standard Motor Products Inc's return on assets (ROA) has shown a declining trend over the past five years. In December 31, 2020, the ROA was 8.41%, reflecting a strong performance in utilizing its assets to generate profit. However, there has been a consistent decrease in ROA since then, with figures dropping to 7.59% in December 31, 2021, 4.41% in December 31, 2022, 2.64% in December 31, 2023, and 1.52% in December 31, 2024.
This downward trend in ROA indicates that the efficiency of Standard Motor Products Inc in generating profits from its assets has been diminishing over the years. It could be a result of factors such as declining profitability, ineffective asset utilization, or increasing asset base without corresponding revenue growth. This trend suggests that the company may need to reassess its asset management strategies to improve profitability and overall performance in the future.
Peer comparison
Dec 31, 2024