SM Energy Co (SM)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	6,379,980	6,078,570	5,992,630	5,870,160	5,716,040	5,651,510	5,339,120	5,395,780	5,233,980	5,061,960	5,053,000	5,015,640	4,976,430	5,122,280	5,267,630	5,615,020	6,292,230	6,453,080	6,391,940	6,286,620
Operating ROA		15.47%	16.77%	24.14%	29.81%	27.63%	30.28%	22.76%	9.67%	4.00%	-8.64%	-13.19%	-15.93%	-21.48%	-19.23%	-14.86%	-6.51%	-1.11%	6.94%	3.75%	3.05%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $986,906K ÷ $6,379,980K
= 15.47%

To analyze SM Energy Co's operating return on assets (operating ROA), we track the performance across multiple quarters. The trend shows fluctuations in operating ROA over the eight quarters analyzed.

In Q1 2022, the operating ROA was 10.18%, which increased to 23.19% in Q2 2022 before further increasing to 30.55% in Q3 2022. However, a slight decline was observed in Q4 2022 with an operating ROA of 27.76%.

The trend continued in 2023, with a significant decrease to 29.92% in Q1 2023, followed by a further decline to 24.17% in Q2 2023 and 16.79% in Q3 2023. The operating ROA then slightly increased to 15.47% in Q4 2023.

The fluctuation in operating ROA suggests variability in the company's profitability relative to its assets over the analyzed period. Further analysis of the company's operational efficiency, asset utilization, and profitability drivers may be required to understand the reasons behind these fluctuations.