SM Energy Co (SM)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	2,373,886	2,436,478	2,631,028	3,072,376	3,358,647	3,542,289	3,467,077	3,038,824	2,622,894	2,088,226	1,609,002	1,214,785	1,126,673	1,258,067	1,367,369	1,604,909	1,590,105	1,532,611	1,601,663	1,638,407
Property, plant and equipment	US$ in thousands	5,376,420	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	5,953,650	6,029,140	5,985,330	5,954,390
Fixed asset turnover		0.44	0.46	0.50	0.61	0.69	0.75	0.75	0.66	0.57	0.45	0.34	0.26	0.24	0.26	0.28	0.33	0.27	0.25	0.27	0.28

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,373,886K ÷ $5,376,420K
= 0.44

SM Energy Co's fixed asset turnover has been showing a decreasing trend over the last few quarters, falling from 0.69 in Q4 2022 to 0.44 in Q4 2023. This indicates that the company is generating less revenue relative to its investment in fixed assets. A lower fixed asset turnover could be a sign of inefficiency in asset utilization or underperformance in generating sales from its fixed assets. It may also suggest that the company is facing challenges in effectively managing its fixed assets to generate revenue. Further analysis and investigation into the company's operational performance and asset management strategies are recommended to better understand the reasons behind the declining fixed asset turnover ratios.