SM Energy Co (SM)

Working capital 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 current assets US$ in thousands 434,699 916,439 737,203 613,187 203,669
Total current liabilities US$ in thousands 789,950 633,812 598,584 889,327 583,739
Working capital turnover — 8.40 24.14 — —

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,671,280K ÷ ($434,699K – $789,950K)
= —

The working capital turnover ratio for SM Energy Co has shown fluctuations over the years. The ratio was not calculable for the years ending December 31, 2020, and December 31, 2024, indicating potential challenges in efficiently managing working capital during those periods.

In December 31, 2022, the working capital turnover was 24.14, indicating that the company generated $24.14 in net revenue for every dollar of working capital invested. This high ratio suggests that SM Energy Co effectively utilized its working capital to generate sales during that fiscal year.

However, in December 31, 2023, the working capital turnover decreased to 8.40. A lower ratio could imply inefficiencies in managing working capital or a decrease in sales relative to the amount of working capital invested.

Overall, it is essential for SM Energy Co to focus on optimizing working capital management to ensure efficiency in generating sales and sustaining operations in the long term.