SM Energy Co (SM)

Operating profit margin

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	986,906	1,019,653	1,446,337	1,749,792	1,579,481	1,711,234	1,215,210	521,780	209,123	-437,335	-666,724	-798,779	-1,068,950	-985,206	-782,597	-365,751	-69,968	448,100	239,979	191,960
Revenue (ttm)	US$ in thousands	2,373,886	2,436,478	2,631,028	3,072,376	3,358,647	3,542,289	3,467,077	3,038,824	2,622,894	2,088,226	1,609,002	1,214,785	1,126,673	1,258,067	1,367,369	1,604,909	1,590,105	1,532,611	1,601,663	1,638,407
Operating profit margin		41.57%	41.85%	54.97%	56.95%	47.03%	48.31%	35.05%	17.17%	7.97%	-20.94%	-41.44%	-65.75%	-94.88%	-78.31%	-57.23%	-22.79%	-4.40%	29.24%	14.98%	11.72%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $986,906K ÷ $2,373,886K
= 41.57%

The operating profit margin of SM Energy Co has shown fluctuations over the past eight quarters. The company experienced a strong performance in Q2 and Q1 of 2023 with operating profit margins of 55.05% and 57.16%, respectively. However, there was a notable decline in Q3 and Q4 of 2023 with margins dropping to 41.89% and 41.57%, respectively.

Comparing the performance to the same periods in 2022, we observe a mixed trend. In Q4 2022, the operating profit margin was 47.25%, which was slightly lower compared to Q4 2023. However, the margins in Q3 and Q2 of 2022 were higher at 48.74% and 35.71%, respectively, indicating some volatility in the company's profitability during these periods.

Overall, the company has shown variability in its operating profit margins, with some quarters demonstrating strong performance while others have experienced declines. It is essential for SM Energy Co to closely monitor and manage its operating expenses and revenue generation strategies to maintain consistent and sustainable profitability levels in the future.