SM Energy Co (SM)
Net 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 770,293 | 829,126 | 810,946 | 750,527 | 817,880 | 829,232 | 1,088,129 | 1,261,740 | 1,111,952 | 1,278,389 | 882,742 | 336,262 | 36,229 | -553,846 | -737,731 | -603,988 | -764,614 | -701,494 | -560,968 | -421,328 |
| 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 |
| Net profit margin | 28.81% | 33.91% | 33.22% | 31.90% | 34.60% | 34.18% | 41.62% | 41.26% | 33.23% | 36.23% | 25.50% | 11.08% | 1.38% | -26.52% | -45.85% | -49.72% | -67.87% | -55.79% | -41.04% | -26.27% |
December 31, 2024 calculation
Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $770,293K ÷ $2,673,896K
= 28.81%
The net profit margin of SM Energy Co has shown a significant improvement over the past few years. The company experienced negative net profit margins from March 2020 to December 2021, indicating that its expenses exceeded its revenues during this period. However, starting from March 2022, the net profit margin turned positive and has been on an upward trend.
The net profit margin increased steadily from 11.08% in March 2022 to 28.81% in December 2024. This improvement reflects the company's efforts in controlling costs, increasing operational efficiency, and potentially benefiting from improved market conditions.
A net profit margin of 28.81% in December 2024 indicates that for every dollar in revenue generated, the company was able to retain approximately 28.81 cents as profit after accounting for all expenses. This positive trend in net profit margin is a positive sign for SM Energy Co's financial health and profitability. It suggests that the company has been able to enhance its profitability and potentially create more value for its shareholders.
Peer comparison
Dec 31, 2024