SM Energy Co (SM)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 8,576,650 | 6,379,980 | 5,716,040 | 5,233,980 | 4,976,430 |
| Operating ROA | 12.54% | 15.47% | 27.63% | 21.88% | -4.39% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,075,700K ÷ $8,576,650K
= 12.54%
SM Energy Co's operating return on assets (operating ROA) has shown a mixed performance over the past five years. In December 2020, the company had a negative operating ROA of -4.39%, indicating that for every dollar of assets, the company generated a loss from its operations.
However, the operating ROA improved significantly in the subsequent years. By December 2021, the operating ROA had surged to 21.88%, reflecting a strong operational performance and efficient asset utilization. The positive trend continued into December 2022, with operating ROA further increasing to 27.63%, indicating continued profitability and effective management of assets.
In December 2023, there was a slight decline in operating ROA to 15.47%, possibly signaling some challenges or changes in the company's operations or market conditions. This decrease was followed by another drop in December 2024 to 12.54%, suggesting a further moderation in the company's operational efficiency and return on assets.
Overall, SM Energy Co's operating ROA has displayed fluctuations over the years, with notable improvements in 2021 and 2022, but some moderation in 2023 and 2024. It would be important for the company to assess the factors influencing these fluctuations and strive for consistent operational efficiency and profitability in the future.
Peer comparison
Dec 31, 2024