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.