SM Energy Co (SM)

Pretax margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	914,202	1,395,770	46,167	-956,705	-231,044
Revenue	US$ in thousands	2,373,890	3,358,650	2,622,890	1,126,670	1,590,100
Pretax margin		38.51%	41.56%	1.76%	-84.91%	-14.53%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $914,202K ÷ $2,373,890K
= 38.51%

The pretax margin of SM Energy Co has fluctuated significantly over the past five years, ranging from -84.92% in 2020 to a high of 41.56% in 2022. The company experienced a significant improvement in its pretax margin from 2020 to 2022, indicating better control over operating expenses or more efficient revenue generation during that period. However, there was a notable decrease in pretax margin in 2023 compared to the prior year. Despite the fluctuations, in 2023, SM Energy Co reported a pretax margin of 38.51%, which suggests that the company was able to generate a strong level of pre-tax income relative to its revenue for that year. Continued monitoring and analysis of the pretax margin will be important to assess the company's profitability and efficiency in the coming years.