SM Energy Co (SM)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,673,896 | 2,444,895 | 2,440,981 | 2,352,981 | 2,363,889 | 2,426,282 | 2,614,141 | 3,057,963 | 3,345,906 | 3,529,024 | 3,461,705 | 3,035,177 | 2,620,302 | 2,088,226 | 1,609,002 | 1,214,694 | 1,126,582 | 1,257,437 | 1,366,739 | 1,604,108 |
| Total current assets | US$ in thousands | 434,699 | 2,044,430 | 774,228 | 793,045 | 916,439 | 702,552 | 678,985 | 756,276 | 737,203 | 807,778 | 633,133 | 758,835 | 613,187 | 336,270 | 269,410 | 230,282 | 203,669 | 274,890 | 355,469 | 625,160 |
| Total current liabilities | US$ in thousands | 789,950 | 581,099 | 601,785 | 536,084 | 633,812 | 599,084 | 563,988 | 563,146 | 598,584 | 814,017 | 1,013,750 | 1,058,720 | 889,327 | 1,103,570 | 1,051,670 | 776,619 | 583,739 | 377,278 | 307,900 | 383,463 |
| Working capital turnover | — | 1.67 | 14.16 | 9.16 | 8.36 | 23.45 | 22.73 | 15.83 | 24.14 | — | — | — | — | — | — | — | — | — | 28.73 | 6.64 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,673,896K ÷ ($434,699K – $789,950K)
= —
The working capital turnover ratio for SM Energy Co has shown fluctuations over the years based on the provided data. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue.
In March 2020, the working capital turnover was 6.64, suggesting that the company generated $6.64 in sales for every dollar of working capital invested. This ratio increased significantly to 28.73 by June 2020, indicating a more efficient use of working capital to drive sales.
From December 2020 to December 2024, the working capital turnover ratio fluctuated, with values ranging from 1.67 to 24.14. It reached its peak at 24.14 in December 2022, implying a highly effective utilization of working capital to generate sales revenue.
However, the ratio declined to 1.67 in September 2024, suggesting a decrease in efficiency in converting working capital into sales. The ratios in March 2024, June 2024, and September 2024 also remained relatively low, indicating a potential need for the company to improve its working capital management efficiency in those periods.
Overall, the trend in working capital turnover for SM Energy Co reflects varying degrees of efficiency in utilizing working capital to support sales activities. It is essential for the company to closely monitor and manage its working capital position to ensure optimal performance and sustainable growth.
Peer comparison
Dec 31, 2024