SM Energy Co (SM)
Total 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 |
| Total assets | US$ in thousands | 6,379,980 | 5,716,040 | 5,233,980 | 4,976,430 | 6,292,230 |
| Total asset turnover | 0.37 | 0.59 | 0.50 | 0.23 | 0.25 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,373,890K ÷ $6,379,980K
= 0.37
The total asset turnover ratio measures a company's ability to generate revenue from its total assets. SM Energy Co's total asset turnover has shown fluctuations over the past five years. In 2023, the ratio was 0.37, indicating that the company generated $0.37 in revenue for every dollar of total assets. This represents a decrease from the previous year when the ratio was 0.59.
The decline in total asset turnover from 2022 to 2023 may suggest inefficiencies in asset utilization or a decrease in revenue generation relative to the size of the asset base. It is worth noting that the total asset turnover ratio was higher in 2021 at 0.50 compared to both 2023 and 2022.
In 2020 and 2019, SM Energy Co's total asset turnover ratios were relatively low at 0.23 and 0.25, respectively. These lower ratios may indicate challenges in effectively utilizing assets to generate revenue during those years.
Overall, the trend in total asset turnover for SM Energy Co indicates variability in the company's ability to efficiently generate revenue from its total assets. Further analysis of the underlying factors affecting asset utilization and revenue generation may be necessary to fully understand the fluctuations in this ratio over the years.
Peer comparison
Dec 31, 2023