SM Energy Co (SM)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	2,673,896	2,444,895	2,440,981	2,352,981	2,363,889	2,426,282	2,614,141	3,057,963	3,345,906	3,529,024	3,461,705	3,035,177	2,620,302	2,088,226	1,609,002	1,214,694	1,126,582	1,257,437	1,366,739	1,604,108
Property, plant and equipment	US$ in thousands	—	—	—	—	—	5,292,290	5,231,230	5,029,550	4,882,780	4,746,860	4,651,980	4,582,970	4,576,000	4,665,480	4,714,810	4,712,620	4,701,870	4,765,100	4,825,820	4,888,340
Fixed asset turnover		—	—	—	—	—	0.46	0.50	0.61	0.69	0.74	0.74	0.66	0.57	0.45	0.34	0.26	0.24	0.26	0.28	0.33

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,673,896K ÷ $—K
= —

Fixed asset turnover is a financial ratio that measures a company's efficiency in generating sales revenue from its investment in fixed assets. In the case of SM Energy Co, the trend in fixed asset turnover over the past few years shows some variability.

From March 31, 2020, to September 30, 2021, the fixed asset turnover ratio steadily declined from 0.33 to 0.45, indicating a decreasing efficiency in utilizing fixed assets to generate sales. However, from September 30, 2021, to June 30, 2023, the ratio improved significantly, reaching a peak of 0.74 by September 30, 2022. This indicates that SM Energy Co became more efficient in utilizing its fixed assets to generate revenue during this period.

The most recent data available for December 31, 2023, shows a slight decrease in fixed asset turnover to 0.46, followed by a further decrease to 0.50 by June 30, 2023. This decline in the ratio may suggest a potential decrease in efficiency in generating sales revenue from fixed assets.

Overall, the trend in SM Energy Co's fixed asset turnover ratio demonstrates periods of fluctuation, indicating variations in the company's ability to efficiently utilize its fixed assets to drive sales revenue. Further analysis and comparison with industry benchmarks may provide additional insights into the company's operational efficiency and performance.