SM Energy Co (SM)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,075,700 | 986,906 | 1,579,480 | 1,145,320 | -218,548 |
| Revenue | US$ in thousands | 2,671,280 | 2,373,890 | 3,345,910 | 2,597,920 | 1,126,580 |
| Operating profit margin | 40.27% | 41.57% | 47.21% | 44.09% | -19.40% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $1,075,700K ÷ $2,671,280K
= 40.27%
The operating profit margin of SM Energy Co has shown significant variability over the past five years. In December 2020, the margin was negative at -19.40%, indicating that the company's operating expenses exceeded its gross profit. However, the company made a remarkable turnaround in the following years, with the margin increasing to 44.09% in December 2021, 47.21% in December 2022, and 41.57% in December 2023. This demonstrates improved cost management and operational efficiency.
In December 2024, the operating profit margin slightly decreased to 40.27%, but it still remains at a relatively healthy level. Overall, the upward trend in the operating profit margin from 2020 to 2023 reflects SM Energy Co's efforts to enhance profitability and streamline its operations. However, it will be important for the company to closely monitor and manage its costs to sustain these positive results in the future.
Peer comparison
Dec 31, 2024