SM Energy Co (SM)

Pretax 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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	966,223	1,016,615	895,329	823,412	914,202	945,718	1,369,973	1,588,203	1,395,770	1,507,373	992,308	358,955	46,167	-587,370	-794,185	-696,965	-956,705	-887,862	-708,256	-518,341
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
Pretax margin		36.14%	41.58%	36.68%	34.99%	38.67%	38.98%	52.41%	51.94%	41.72%	42.71%	28.67%	11.83%	1.76%	-28.13%	-49.36%	-57.38%	-84.92%	-70.61%	-51.82%	-32.31%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $966,223K ÷ $2,673,896K
= 36.14%

The pretax margin of SM Energy Co has shown a significant improvement over the past few quarters. From negative percentages in the range of -32.31% to -84.92% in 2020 and early 2021, the company has managed to reverse the trend and achieve positive pretax margins of 1.76% and higher from Q4 2021 to Q2 2024.

The most recent data indicates a pretax margin of 36.14% as of December 31, 2024, reflecting a consistent upward trend in profitability. This improvement suggests that SM Energy Co has successfully managed its operating expenses and tax obligations, leading to healthier financial performance. Overall, the positive pretax margins indicate that the company's revenue growth has outpaced its operating costs and tax expenses, signaling improved efficiency and financial strength.