Standard Motor Products Inc (SMP)

Debt-to-equity 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-equity ratio		0.24	0.15	0.26	0.35	0.30	0.35	0.34	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-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 eight quarters. The ratio has ranged from a low of 0.23 in Q3 2023 to a high of 0.44 in Q1 2023. Generally, a lower debt-to-equity ratio is considered more favorable as it indicates that the company relies less on debt financing and has a stronger equity base to support its operations.

The decreasing trend in the debt-to-equity ratio from Q1 2023 to Q3 2023 suggests that the company has been reducing its debt relative to its equity, which could be a positive sign of improved financial health and lower financial risk. However, the ratio increased in Q4 2023 compared to the previous quarter, indicating a potential increase in debt relative to equity.

It is important for stakeholders to monitor these changes in the debt-to-equity ratio over time to assess the company's financial leverage and risk profile. Overall, the company's debt-to-equity ratio demonstrates a mixed performance in managing its debt and equity structure.