Standard Motor Products Inc (SMP)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	635,064	629,348	629,673	621,644	610,020	599,387	601,586	611,871	601,580	587,018	583,616	556,940	550,236	544,904	510,656	496,613	504,228	494,052	485,265	473,040
ROE		5.38%	5.66%	6.01%	7.69%	9.07%	11.03%	13.52%	14.60%	15.11%	13.86%	14.73%	12.53%	10.43%	10.96%	8.98%	10.94%	11.49%	10.06%	10.45%	9.98%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $34,148K ÷ $635,064K
= 5.38%

Standard Motor Products, Inc. has experienced a declining trend in its return on equity (ROE) over the recent quarters. The ROE decreased from 14.60% in Q1 2022 to 5.38% in Q4 2023. This downward trend indicates a decrease in the company's ability to generate profit from shareholder equity.

The decreasing ROE could be attributed to various factors such as decreasing profitability, increasing financial leverage, or inefficient utilization of assets. It is important for the company to investigate the underlying reasons for the declining ROE and take appropriate actions to improve profitability, streamline operations, or optimize its capital structure.

Investors and stakeholders should closely monitor Standard Motor Products, Inc.'s financial performance and management actions to assess the impact on the company's return on equity and overall financial health.