SM Energy Co (SM)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 44.58% | 45.47% | 46.35% | 45.62% | 46.95% | 49.64% | 54.09% | 60.20% | 63.40% | 63.91% | 62.26% | 56.64% | 51.16% | 41.51% | 27.91% | 10.18% | -4.40% | 0.81% | 4.12% | 14.06% |
| Operating profit margin | 40.83% | 45.59% | 40.12% | 39.16% | 41.75% | 42.03% | 50.15% | 52.80% | 55.68% | 56.52% | 47.20% | 30.99% | 7.98% | -20.94% | -41.44% | -65.76% | -94.88% | -78.35% | -57.26% | -22.80% |
| 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% |
| Net profit margin | 28.81% | 33.91% | 33.22% | 31.90% | 34.60% | 34.18% | 41.62% | 41.26% | 33.23% | 36.23% | 25.50% | 11.08% | 1.38% | -26.52% | -45.85% | -49.72% | -67.87% | -55.79% | -41.04% | -26.27% |
Based on the provided data, SM Energy Co's profitability ratios have shown significant fluctuations over the quarters. Here is a detailed analysis:
1. Gross Profit Margin: SM Energy Co's gross profit margin has shown an improving trend from negative figures in 2020 to reaching a peak of 63.91% in September 2022. However, there has been a slight decline thereafter to 44.58% by December 2024.
2. Operating Profit Margin: The operating profit margin of SM Energy Co has shown a remarkable recovery, transitioning from negative margins in 2020 to positive margins by December 2021. The margin increased steadily and peaked at 45.59% in September 2024 before experiencing a slight decrease to 40.83% by December 2024.
3. Pretax Margin: The pretax margin also followed a similar pattern of improvement over the quarters, moving from negative figures in 2020 to positive margins by December 2021. The margin continued to increase and peaked at 41.58% in September 2024.
4. Net Profit Margin: SM Energy Co's net profit margin exhibited a recovery trend similar to the other profitability ratios, turning from negative numbers to positive margins by December 2021. The margin increased steadily, reaching a peak of 41.62% in June 2023, before slightly declining to 28.81% by December 2024.
Overall, SM Energy Co has shown significant improvements in its profitability ratios over the quarters, indicating better operational efficiency and financial performance. However, there are some fluctuations in the margins in recent periods, which may need further monitoring and analysis to ensure sustained profitability in the future.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 8.98% | 10.33% | 12.18% | 11.73% | 12.82% | 13.64% | 18.16% | 21.49% | 19.45% | 22.62% | 16.53% | 6.23% | 0.69% | -10.94% | -14.60% | -12.04% | -15.36% | -13.69% | -10.65% | -7.50% |
| Return on total capital | 26.19% | 27.87% | 25.48% | 24.91% | 27.42% | 30.18% | 39.95% | 50.06% | 60.28% | 69.33% | 66.61% | 44.28% | 9.97% | -17.16% | -30.79% | -21.89% | -30.37% | -26.53% | -17.97% | -9.11% |
| Return on equity (ROE) | 18.18% | 20.41% | 21.10% | 20.29% | 22.62% | 24.36% | 32.99% | 39.07% | 36.04% | 44.58% | 36.11% | 15.90% | 1.76% | -33.84% | -47.52% | -34.13% | -37.92% | -32.10% | -24.59% | -17.99% |
SM Energy Co has shown a significant improvement in its profitability ratios over the past few quarters. The Operating Return on Assets (Operating ROA) has increased from negative percentages to positive percentages, indicating that the company has been able to generate operating profits more efficiently from its assets.
Similarly, the Return on Assets (ROA) has also shown an upward trend, reflecting the company's ability to generate profits from its total assets. This improvement suggests that SM Energy Co is utilizing its assets more efficiently to generate earnings.
The Return on Total Capital has also shown a positive trend, indicating that the company has been able to generate higher returns on the capital invested in the business. This demonstrates improved financial performance and efficiency in capital utilization.
Lastly, the Return on Equity (ROE) has also improved steadily, showing that the company is effectively generating profits for its shareholders relative to the equity invested in the business.
Overall, the increasing profitability ratios reflect SM Energy Co's improved financial performance and efficiency in utilizing its assets and capital to generate profits for both the company and its shareholders.