Standard Motor Products Inc (SMP)

Return on equity (ROE)

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 stockholders’ equity US$ in thousands 615,745 635,064 610,020 601,580 550,236
ROE 4.47% 5.38% 9.07% 15.11% 14.62%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $27,500K ÷ $615,745K
= 4.47%

Standard Motor Products Inc's return on equity (ROE) has shown a downward trend over the years, starting at 14.62% on December 31, 2020, and declining to 4.47% by December 31, 2024. This suggests a decreasing ability of the company to generate profits from its shareholders' equity. A high ROE indicates efficient use of equity capital, while a declining ROE may indicate issues with profitability, asset efficiency, or increasing leverage. Further analysis of the company's financial performance and factors affecting ROE would be necessary to understand the underlying reasons for this trend and evaluate the company's overall financial health.