SM Energy Co (SM)

Net profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	817,880	1,111,950	36,229	-764,614	-187,001
Revenue	US$ in thousands	2,373,890	3,358,650	2,622,890	1,126,670	1,590,100
Net profit margin		34.45%	33.11%	1.38%	-67.86%	-11.76%

December 31, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $817,880K ÷ $2,373,890K
= 34.45%

The net profit margin of SM Energy Co has shown a positive trend over the past five years, with significant improvement from 2019 to 2023. The company achieved a net profit margin of 34.45% in 2023, reflecting a strong profitability level compared to the previous years. The substantial increase in net profit margin from 2019 to 2023 indicates effective cost management and operational efficiency measures implemented by the company. However, it is worth noting the drastic decline in net profit margin in 2020, which may have been influenced by external factors such as the economic downturn or industry-specific challenges. Overall, the upward trajectory of SM Energy Co's net profit margin demonstrates a positive performance and potential for sustained profitability in the future.