Standard Motor Products Inc (SMP)

Return on total capital

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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 65,803 72,203 74,710 84,070 91,174 100,202 113,603 122,419 123,958 117,102 123,810 102,673 86,683 86,035 68,770 81,038 85,948 77,742 78,121 73,053
Long-term debt US$ in thousands 151,182 95,170 164,488 215,487 184,589 211,400 203,500 0 21 68 80 84 97 103 108 111 129 132 153 161
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
Return on total capital 8.37% 9.97% 9.41% 10.04% 11.47% 12.36% 14.11% 20.01% 20.60% 19.95% 21.21% 18.43% 15.75% 15.79% 13.46% 16.31% 17.04% 15.73% 16.09% 15.44%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $65,803K ÷ ($151,182K + $635,064K)
= 8.37%

Standard Motor Products, Inc.'s return on total capital has shown some fluctuations over the past eight quarters. The company's return on total capital ranged from a high of 15.14% in Q1 2022 to a low of 11.64% in Q1 2023. Generally, the return on total capital has been relatively stable, with the average return hovering around 13%. It is important to note that a higher return on total capital indicates better efficiency in generating profits from the company's total capital employed. Monitoring this ratio over time can provide insights into the company's profitability and overall financial performance.