SM Energy Co (SM)

Working capital turnover

		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
Revenue (ttm)	US$ in thousands	2,373,886	2,436,478	2,631,028	3,072,376	3,358,647	3,542,289	3,467,077	3,038,824	2,622,894	2,088,226	1,609,002	1,214,785	1,126,673	1,258,067	1,367,369	1,604,909	1,590,105	1,532,611	1,601,663	1,638,407
Total current assets	US$ in thousands	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	252,634	311,114	288,734	221,334
Total current liabilities	US$ in thousands	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	472,043	491,042	503,945	545,342
Working capital turnover		8.40	23.55	22.88	15.91	24.23	—	—	—	—	—	—	—	—	—	28.74	6.64	—	—	—	—

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,373,886K ÷ ($916,439K – $633,812K)
= 8.40

Based on the data provided, the working capital turnover for SM Energy Co has shown fluctuations over the past eight quarters. In Q4 2023, the working capital turnover was 8.40, which decreased significantly compared to the previous quarter's value of 23.55 in Q3 2023. However, Q3 2023 marked a notable increase in efficiency compared to the two preceding quarters, with a working capital turnover of 23.55.

The working capital turnover for Q2 2023 was 22.88, reflecting a strong performance in efficiently utilizing its working capital. This trend continued from Q1 2023, where the company achieved a working capital turnover of 15.91. In comparison to Q4 2022, which had a working capital turnover of 24.23, the company experienced a slight decrease in efficiency in Q1 2023.

The absence of data for Q3 and Q2 2022 limits the ability to provide a comprehensive trend analysis for those periods. However, the data available suggests that SM Energy Co has demonstrated varying levels of efficiency in managing its working capital over the past year.

Overall, the working capital turnover ratio for SM Energy Co has shown fluctuations, indicating changes in the company's ability to convert its working capital into revenue. Further analysis and comparison with industry benchmarks would be beneficial in assessing the company's performance in this area.