Standard Motor Products Inc (SMP)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	615,745	638,833	640,018	639,150	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
ROE		4.72%	5.66%	6.09%	4.86%	5.38%	5.66%	8.29%	10.00%	11.43%	13.42%	13.52%	14.60%	15.11%	13.86%	14.73%	12.53%	10.43%	10.96%	8.98%	10.94%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $29,092K ÷ $615,745K
= 4.72%

Standard Motor Products Inc's return on equity (ROE) has shown variability over the past several quarters. Starting from March 31, 2020, the ROE was at 10.94%, which then decreased to 8.98% by June 30, 2020. However, the ROE started to recover and reached 10.96% by September 30, 2020, and further improved to 10.43% by December 31, 2020.

The trend continued positively with a notable increase in ROE to 12.53% by March 31, 2021, and a significant jump to 14.73% by June 30, 2021. The ROE remained strong at 13.86% by September 30, 2021, and peaked at 15.11% by December 31, 2021.

Subsequently, there was a slight decline in ROE to 14.60% by March 31, 2022, followed by a further decrease to 13.52% by June 30, 2022. The ROE then stayed relatively stable around the 13% range for the next several quarters, with figures of 13.42% by September 30, 2022, and 11.43% by December 31, 2022.

However, starting from March 31, 2023, there was a noticeable downward trend in the ROE for Standard Motor Products Inc. The ROE dropped to 10.00% by March 31, 2023, and continued to decline to 4.72% by December 31, 2024. This declining trend in ROE may signal potential challenges in generating profits relative to shareholders' equity and could warrant further investigation into the company's financial health and performance.