Standard Motor Products Inc (SMP)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.19	0.13	0.21	0.26	0.23	0.26	0.25	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $151,182K ÷ ($151,182K + $635,064K)
= 0.19

Standard Motor Products, Inc.'s debt-to-capital ratio has fluctuated over the past eight quarters, ranging from 0.19 to 0.31. The ratio indicates the proportion of the company's capital that is financed by debt. A lower ratio implies less reliance on debt for financing operations, while a higher ratio suggests a higher debt burden.

The trend in Standard Motor Products' debt-to-capital ratio shows a decrease in the first two quarters of 2023, indicating a reduced level of debt relative to capital. This potentially signals improved financial health and reduced financial risk for the company. However, the ratio increased in Q2 and Q1 2023 compared to the previous quarters, highlighting a higher debt level relative to capital during those periods.

Further analysis is recommended to understand the reasons behind these fluctuations and their potential implications for the company's financial stability and future growth prospects. It would be beneficial to assess the company's debt management strategies, overall capital structure, and profitability to gain a comprehensive understanding of its financial position.