SM Energy Co (SM)

Gross profit margin

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
Gross profit (ttm) US$ in thousands 1,191,945 1,111,612 1,131,403 1,073,350 1,109,865 1,204,430 1,414,080 1,840,906 2,121,214 2,255,314 2,155,375 1,719,093 1,340,500 866,823 449,080 123,641 -49,622 10,221 56,321 225,611
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
Gross profit margin 44.58% 45.47% 46.35% 45.62% 46.95% 49.64% 54.09% 60.20% 63.40% 63.91% 62.26% 56.64% 51.16% 41.51% 27.91% 10.18% -4.40% 0.81% 4.12% 14.06%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,191,945K ÷ $2,673,896K
= 44.58%

SM Energy Co's gross profit margin has shown significant fluctuations over the past few years. The company's gross profit margin deteriorated from 14.06% in March 2020 to -4.40% in December 2020, indicating a period of financial challenges. However, there was a notable recovery in subsequent quarters, with the gross profit margin improving to 63.40% by December 2022.

In the following quarters, SM Energy Co's gross profit margin experienced some volatility but generally maintained an upward trend, reaching a peak of 63.91% in September 2022. However, there was a slight decline in the margins in the latter part of 2023 and into 2024.

Overall, SM Energy Co's gross profit margin improved significantly from negative territory to above 60% by 2022, signaling an enhancement in the company's operational efficiency and profitability. However, the slight decrease in margins towards the end of 2023 and into 2024 may warrant further investigation to ensure sustained profitability levels in the future.