SM Energy Co (SM)

Operating 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
Operating income (ttm)	US$ in thousands	1,091,722	1,114,665	979,310	921,399	986,906	1,019,653	1,311,000	1,614,455	1,862,941	1,994,694	1,634,007	940,577	209,123	-437,335	-666,724	-798,779	-1,068,950	-985,206	-782,597	-365,751
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
Operating profit margin		40.83%	45.59%	40.12%	39.16%	41.75%	42.03%	50.15%	52.80%	55.68%	56.52%	47.20%	30.99%	7.98%	-20.94%	-41.44%	-65.76%	-94.88%	-78.35%	-57.26%	-22.80%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $1,091,722K ÷ $2,673,896K
= 40.83%

The operating profit margin of SM Energy Co has shown significant improvement over the past few quarters. The company had negative operating profit margins in the range of -22.80% to -94.88% in the first three quarters of 2020, indicating operating losses during that period. However, there was a turnaround starting from the fourth quarter of 2020, with the operating profit margin improving to 7.98%.

Subsequently, the operating profit margin continued to increase steadily, reaching 56.52% by the end of the third quarter of 2022. This upward trend in operating profit margin demonstrates the company's ability to generate more profit from its core operations.

However, there was a slight decline in the operating profit margin in the following quarters, dropping to 40.83% by the end of December 2024. Despite the decline, the operating profit margin remained above the 40% mark, indicating strong operational efficiency and profitability for SM Energy Co.

Overall, the recent performance of SM Energy Co in terms of operating profit margin reflects a positive trend, with a notable improvement in profitability and operational effectiveness in the latter half of the analyzed period.