Standard Motor Products Inc (SMP)

Return on assets (ROA)

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
Net income (ttm) US$ in thousands 34,148 35,647 37,834 47,823 55,351 66,112 81,316 89,332 90,886 81,366 85,941 69,766 57,393 59,737 45,863 54,328 57,917 49,719 50,717 47,230
Total assets US$ in thousands 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 1,155,280 976,482 956,540 950,997 944,765 940,711 903,854 920,683 969,527 912,734
ROA 2.64% 2.74% 2.91% 3.62% 4.41% 5.01% 6.13% 6.82% 7.59% 6.80% 7.44% 7.14% 6.00% 6.28% 4.85% 5.78% 6.41% 5.40% 5.23% 5.17%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ 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 eight quarters. In Q1 2022, the ROA was the highest at 6.82%, indicating that the company generated $6.82 in profit for every $100 of assets it had. However, the ROA has steadily decreased since then, reaching 2.64% in Q4 2023. This decline suggests a decrease in efficiency in generating profits from the company's assets. It would be important for Standard Motor Products, Inc. to assess and address the factors contributing to this trend to improve its profitability and asset utilization in the future.