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.