SM Energy Co (SM)
Activity ratios
Short-term
Turnover 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 12.24 | 27.44 | 9.74 | 9.22 | 15.37 | 17.82 | 40.01 | 71.83 | 27.26 | 24.20 | — | — | 48.49 | 12.38 | 7.64 | 3.57 | 12.17 | 4.88 | 6.15 | 10.47 |
| Receivables turnover | 10.27 | 9.21 | 12.08 | 16.36 | 14.40 | 13.73 | 10.38 | 9.46 | 10.61 | 7.67 | 7.01 | 6.09 | 6.94 | 9.21 | 10.75 | 11.20 | 8.61 | 10.48 | 9.66 | 11.28 |
| Payables turnover | 6.44 | — | — | — | 17.05 | — | — | — | 26.20 | — | — | — | 24.01 | — | — | — | 12.89 | — | — | — |
| Working capital turnover | 8.40 | 23.55 | 22.88 | 15.91 | 24.23 | — | — | — | — | — | — | — | — | — | 28.74 | 6.64 | — | — | — | — |
The activity ratios for SM Energy Co provide insights into how efficiently the company is managing its assets and liabilities.
- Receivables Turnover: This ratio measures how many times the company collects accounts receivable during a specific period. SM Energy Co's receivables turnover has been fluctuating, ranging from 9.21 to 16.36 over the past eight quarters. A higher turnover ratio indicates a more efficient collection process.
- Payables Turnover: The data shows that information for payables turnover is not available for most quarters. The absence of data may indicate that the company does not have a consistent payment schedule with suppliers, which may impact liquidity and relationships with suppliers.
- Working Capital Turnover: This ratio reflects how effectively SM Energy Co is using its working capital to generate sales. The company's working capital turnover has been variable, with values ranging from 8.40 to 24.23. A higher turnover ratio suggests efficient utilization of working capital to generate revenue.
Overall, while SM Energy Co's receivables turnover and working capital turnover ratios indicate fairly efficient operations, the lack of data for payables turnover limits a comprehensive analysis of the company's overall efficiency in managing its working capital cycle.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 29.82 | 13.30 | 37.46 | 39.58 | 23.74 | 20.49 | 9.12 | 5.08 | 13.39 | 15.08 | — | — | 7.53 | 29.48 | 47.75 | 102.35 | 30.00 | 74.80 | 59.31 | 34.87 |
| Days of sales outstanding (DSO) | days | 35.54 | 39.63 | 30.21 | 22.31 | 25.35 | 26.58 | 35.16 | 38.57 | 34.40 | 47.59 | 52.06 | 59.98 | 52.63 | 39.64 | 33.95 | 32.59 | 42.40 | 34.82 | 37.77 | 32.37 |
| Number of days of payables | days | 56.69 | — | — | — | 21.41 | — | — | — | 13.93 | — | — | — | 15.20 | — | — | — | 28.32 | — | — | — |
The Days of Sales Outstanding (DSO) for SM Energy Co fluctuated over the past eight quarters, ranging from a low of 22.31 days in Q1 2023 to a high of 39.63 days in Q3 2023. This ratio measures how long it takes for the company to collect its accounts receivable, indicating the efficiency of its credit and collection policies.
On the other hand, the Days of Inventory on Hand (DOH) data is not available for analysis, preventing a deeper understanding of how quickly the company is selling its inventory.
The absence of information on the Number of Days of Payables also limits the assessment of the company's management of trade credit from suppliers.
Overall, the analysis of SM Energy Co's activity ratios suggests a need for more detailed information on inventory management and payables to provide a comprehensive evaluation of the company's operational efficiency.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 0.37 | 0.40 | 0.44 | 0.52 | 0.59 | 0.63 | 0.65 | 0.56 | 0.50 | 0.41 | 0.32 | 0.24 | 0.23 | 0.25 | 0.26 | 0.29 | 0.25 | 0.24 | 0.25 | 0.26 |
Long-term activity ratios provide insights into how efficiently a company is utilizing its assets to generate revenue.
Fixed asset turnover indicates the company's ability to generate sales from its fixed assets. SM Energy Co's fixed asset turnover has been gradually decreasing over the last eight quarters, from 0.66 in Q1 2022 to 0.44 in Q4 2023. This trend suggests a decline in the company's efficiency in generating sales from its fixed assets.
Total asset turnover measures how well a company is using all its assets to generate revenue. SM Energy Co's total asset turnover has also shown a decline over the same period, from 0.56 in Q1 2022 to 0.37 in Q4 2023. This indicates a decrease in the company's overall efficiency in generating revenue from its total assets.
Overall, both fixed asset turnover and total asset turnover ratios for SM Energy Co have been on a downward trend, suggesting a decreasing efficiency in utilizing its assets to generate revenue. Further analysis and monitoring of the company's asset management strategies may be required to improve these ratios in the future.