Standard Motor Products Inc (SMP)

Financial leverage ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Total assets US$ in thousands 1,814,130 1,350,540 1,374,330 1,351,560 1,293,050 1,299,930 1,302,140 1,320,020 1,254,930 1,318,730 1,326,550 1,310,410 1,197,960 1,195,730 1,155,280 976,482 956,540 950,997 944,765 940,711
Total stockholders’ equity US$ in thousands 615,745 638,833 640,018 639,150 635,064 629,348 629,673 621,644 610,020 599,387 601,586 611,871 601,580 587,018 583,616 556,940 550,236 544,904 510,656 496,613
Financial leverage ratio 2.95 2.11 2.15 2.11 2.04 2.07 2.07 2.12 2.06 2.20 2.21 2.14 1.99 2.04 1.98 1.75 1.74 1.75 1.85 1.89

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,814,130K ÷ $615,745K
= 2.95

Standard Motor Products Inc's financial leverage ratio has been fluctuating over the years, starting from around 1.85 in June 2020 and ending at 2.95 in December 2024. The ratio indicates that the company's reliance on debt to finance its operations has been increasing steadily. This suggests that the company has been taking on more debt relative to its equity, which may increase financial risk. It is important for investors and stakeholders to monitor this trend closely to ensure the company's long-term financial health and stability.