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.