SM Energy Co (SM)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 8,576,650 | 8,027,770 | 6,657,010 | 6,398,460 | 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 |
| Operating ROA | 12.73% | 13.89% | 14.71% | 14.40% | 15.47% | 16.77% | 21.88% | 27.50% | 32.59% | 35.29% | 30.60% | 17.43% | 4.00% | -8.64% | -13.19% | -15.93% | -21.48% | -19.23% | -14.86% | -6.51% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,091,722K ÷ $8,576,650K
= 12.73%
Operating ROA is a key financial ratio that measures a company's ability to generate profits from its operations relative to its total assets. Looking at the data provided for SM Energy Co, we observe a significant improvement in the company's operating ROA over the quarters.
The trend started at negative levels in early 2020, indicating that the company was facing challenges in generating profits from its operations in relation to its asset base. However, from the latter part of 2021 through the end of 2024, there was a steady and impressive increase in the operating ROA.
The ratio turned positive in the last quarter of 2021 and continued to rise consistently, reaching its peak at 35.29% in the third quarter of 2022. This positive trend demonstrates that SM Energy Co improved its operational efficiency and profitability in utilizing its assets to generate earnings.
Although there was a slight decline in the ratio in the following quarters, the operating ROA remained relatively strong, indicating that the company continued to effectively utilize its assets to generate profits.
Overall, the improving trend in SM Energy Co's operating ROA reflects positively on the company's operational performance and suggests better asset utilization and profitability over the analyzed period.
Peer comparison
Dec 31, 2024