SM Energy Co (SM)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,671,280 | 2,373,890 | 3,345,910 | 2,597,920 | 1,126,580 |
| Total assets | US$ in thousands | 8,576,650 | 6,379,980 | 5,716,040 | 5,233,980 | 4,976,430 |
| Total asset turnover | 0.31 | 0.37 | 0.59 | 0.50 | 0.23 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,671,280K ÷ $8,576,650K
= 0.31
SM Energy Co's total asset turnover has shown variability over the past five years. The ratio increased from 0.23 on December 31, 2020, to 0.50 on December 31, 2021, indicating an improvement in efficiency in generating sales from its assets. This trend continued as the total asset turnover ratio further increased to 0.59 by December 31, 2022, reflecting that the company was generating $0.59 in revenue for every $1 in total assets.
However, the total asset turnover ratio declined in the following years, dropping to 0.37 by December 31, 2023, and further to 0.31 by December 31, 2024. These declining ratios suggest that SM Energy Co may have faced challenges in efficiently utilizing its assets to generate revenue during these periods.
Overall, while there were fluctuations in the total asset turnover ratio, it is essential for SM Energy Co to closely monitor and manage its asset utilization to ensure sustainable revenue generation and operational efficiency in the future.
Peer comparison
Dec 31, 2024