Standard Motor Products Inc (SMP)

Return on assets (ROA)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Net income (ttm)	US$ in thousands	29,092	36,131	38,980	31,054	34,148	35,647	52,180	62,169	69,697	80,458	81,316	89,332	90,886	81,366	85,941	69,766	57,393	59,737	45,863	54,328
Total assets	US$ in thousands	1,814,130	1,350,540	1,374,330	1,351,560	1,293,050	1,299,930	1,302,140	1,320,020	1,254,930	1,318,730	1,326,550	1,310,410	1,197,960	1,195,730	1,155,280	976,482	956,540	950,997	944,765	940,711
ROA		1.60%	2.68%	2.84%	2.30%	2.64%	2.74%	4.01%	4.71%	5.55%	6.10%	6.13%	6.82%	7.59%	6.80%	7.44%	7.14%	6.00%	6.28%	4.85%	5.78%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $29,092K ÷ $1,814,130K
= 1.60%

Standard Motor Products Inc's return on assets (ROA) has shown fluctuations over the specified period. ROA was relatively stable around the 5-6% range from March 31, 2020, to September 30, 2021. There was a notable increase in ROA from March 31, 2021, reaching a peak of 7.59% by December 31, 2021. However, the ROA started declining after this peak, dropping to 4.01% by June 30, 2023, and further decreasing to 1.60% by December 31, 2024.

This trend suggests that the company's ability to effectively generate profits from its assets improved initially but then declined in the latter part of the period. A decreasing ROA may indicate inefficiencies in asset utilization or declining profitability relative to the size of the company's asset base. Further analysis of the company's financial performance and operational strategies would be necessary to understand the factors driving these fluctuations in ROA.