SM Energy Co (SM)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,373,890 | 3,358,650 | 2,622,890 | 1,126,670 | 1,590,100 |
| Property, plant and equipment | US$ in thousands | 5,376,420 | 4,882,780 | 4,576,000 | 4,701,870 | 5,953,650 |
| Fixed asset turnover | 0.44 | 0.69 | 0.57 | 0.24 | 0.27 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,373,890K ÷ $5,376,420K
= 0.44
The fixed asset turnover ratio for SM Energy Co has exhibited fluctuating trends over the past five years. In 2023, the ratio decreased to 0.44 from 0.69 in 2022, indicating a decline in the company's ability to generate revenue relative to its investment in fixed assets. Despite the decrease, the ratio remains above the 2020 and 2019 levels of 0.24 and 0.27, respectively. This suggests that SM Energy Co has improved its efficiency in utilizing fixed assets to generate sales compared to those years. However, the ratio is still lower than the 2021 level of 0.57, signifying a potential inefficiency in asset utilization compared to the previous year. Overall, the company may benefit from further analysis and action to optimize the management of fixed assets to improve its revenue generation efficiency.
Peer comparison
Dec 31, 2023