Standard Motor Products Inc (SMP)

Debt-to-equity ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	151,182	184,589	21	97	129
Total stockholders’ equity	US$ in thousands	635,064	610,020	601,580	550,236	504,228
Debt-to-equity ratio		0.24	0.30	0.00	0.00	0.00

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $151,182K ÷ $635,064K
= 0.24

Standard Motor Products, Inc.'s debt-to-equity ratio has fluctuated over the past five years. The ratio was relatively low in 2020 at 0.02, indicating a conservative financial structure with minimal debt relative to equity. However, there was a significant increase in the ratio in 2022 to 0.39, suggesting a higher reliance on debt financing compared to equity. This increase may raise concerns about the company's financial risk and leverage. In 2023, the ratio decreased to 0.25, but it still remains higher than in 2020. Overall, it is important for investors and creditors to monitor the trend in the debt-to-equity ratio to assess Standard Motor Products, Inc.'s financial health and risk profile.