Standard Motor Products Inc (SMP)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.12 | 0.07 | 0.13 | 0.16 | 0.15 | 0.16 | 0.15 | 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 |
| 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 |
| 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 |
| Financial leverage ratio | 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 | 1.79 | 1.86 | 2.00 | 1.93 |
Standard Motor Products, Inc. demonstrates a relatively stable trend in its solvency ratios over the past eight quarters. The Debt-to-assets ratio has ranged from 0.11 to 0.21, with a minor uptick in Q2 2023. This indicates that the company relies on debt for a small portion of its total assets.
The Debt-to-capital ratio has fluctuated between 0.19 and 0.31, showing a moderate increase in leverage in Q4 2022 and Q2 2023. This suggests that a larger proportion of the company's capital structure is funded by debt.
The Debt-to-equity ratio has varied between 0.23 and 0.44, with a noticeable peak in Q4 2022. This implies that the company's debt levels relative to equity have been somewhat volatile, reaching higher levels in certain quarters.
The Financial leverage ratio has remained relatively stable between 2.04 and 2.21, indicating that the company's financial leverage has been consistent over the quarters analyzed.
Overall, while the solvency ratios of Standard Motor Products, Inc. have shown some fluctuations, the company has maintained a reasonable level of leverage and debt utilization to support its operations and growth initiatives.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 4.95 | 4.78 | 4.94 | 6.15 | 8.59 | 14.41 | 28.76 | 46.65 | 61.12 | 74.26 | 89.26 | 61.70 | 37.23 | 27.99 | 16.69 | 15.98 | 16.26 | 14.93 | 15.77 | 16.30 |
The interest coverage ratio for Standard Motor Products, Inc. has shown a declining trend over the past four quarters, from 10.31 in Q4 2022 to 7.33 in Q4 2023. This indicates a decrease in the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).
While the interest coverage ratio is above 1 in all quarters, signifying that the company is able to meet its interest obligations, the decreasing trend raises some concerns about the company's profitability and ability to service debt in the future.
The significant decline from 49.66 in Q1 2022 to 7.62 in Q1 2023 is particularly noteworthy, indicating a substantial decrease in the company's ability to cover its interest expenses within a year. This suggests a potential strain on the company's financial health and raises questions about its ability to sustain its current level of debt.
Overall, the trend in Standard Motor Products, Inc.'s interest coverage ratio highlights the importance of monitoring the company's financial performance and debt servicing capabilities in the coming quarters to assess its long-term sustainability.