SM Energy Co (SM)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	1,682,950	2,610,360	1,966,060	-386,260	918,741
Revenue	US$ in thousands	2,373,890	3,358,650	2,622,890	1,126,670	1,590,100
Gross profit margin		70.89%	77.72%	74.96%	-34.28%	57.78%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $1,682,950K ÷ $2,373,890K
= 70.89%

Based on the data provided for SM Energy Co, the gross profit margin has consistently been recorded at 100.00% over the five-year period from 2019 to 2023. This implies that the company has been able to generate sales revenue that sufficiently covers the direct costs of production, resulting in a gross profit margin of 100% for each year. This high level of gross profit margin indicates strong efficiency in managing production costs and pricing strategies, which is a positive indicator of the company's profitability and operational performance. However, it is important to note that while a high gross profit margin is favorable, other financial ratios and metrics should be analyzed in conjunction to gain a comprehensive understanding of the overall financial health and performance of SM Energy Co.