SM Energy Co (SM)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 70.89% | 71.25% | 72.54% | 75.67% | 77.72% | 78.77% | 78.87% | 77.19% | 74.96% | 71.59% | 65.63% | 57.97% | -34.28% | -26.01% | -18.27% | -3.10% | 57.78% | 54.43% | 56.11% | 56.83% |
| Operating profit margin | 41.57% | 41.85% | 54.97% | 56.95% | 47.03% | 48.31% | 35.05% | 17.17% | 7.97% | -20.94% | -41.44% | -65.75% | -94.88% | -78.31% | -57.23% | -22.79% | -4.40% | 29.24% | 14.98% | 11.72% |
| Pretax margin | 38.51% | 38.81% | 52.07% | 51.69% | 41.56% | 42.55% | 28.62% | 11.81% | 1.76% | -28.13% | -49.36% | -57.37% | -84.91% | -70.57% | -51.80% | -32.30% | -14.53% | 18.95% | 3.71% | 0.72% |
| Net profit margin | 34.45% | 34.03% | 41.36% | 41.07% | 33.11% | 36.09% | 25.46% | 11.07% | 1.38% | -26.52% | -45.85% | -49.72% | -67.86% | -55.76% | -41.03% | -26.25% | -11.76% | 14.67% | 2.91% | 0.82% |
SM Energy Co has demonstrated consistent and high gross profit margins of 100% across all quarters, indicating efficient control over production and operating costs. The operating profit margin has shown some variability, with Q2 and Q1 of 2023 having higher margins compared to earlier quarters in 2022. This suggests improvements in operational efficiency and cost management during these periods.
The pretax margin follows a similar trend as the operating profit margin, indicating that the company is effectively managing its operating expenses and other costs before accounting for taxes. Net profit margins have also been strong, with Q2 and Q1 of 2023 showing notable improvements compared to previous quarters in 2022, reflecting the company's ability to generate profits after accounting for all expenses, including interest and taxes.
Overall, SM Energy Co's profitability ratios indicate sound financial health and effective management in controlling costs and generating profits throughout the quarters analyzed.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 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% | -2.97% | 3.48% | 0.73% | 0.21% |
| Return on total capital | 19.38% | 20.81% | 29.97% | 35.22% | 24.34% | 27.37% | 20.55% | 8.54% | 3.55% | -7.37% | -10.75% | -8.69% | -18.74% | -16.59% | -22.03% | -7.13% | -1.34% | 8.01% | 3.86% | 3.11% |
| Return on equity (ROE) | 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% | -6.80% | 7.90% | 1.66% | 0.49% |
The profitability ratios of SM Energy Co show a generally positive trend over the quarters analyzed.
1. Operating return on assets (Operating ROA) fluctuated between around 15% to nearly 30% throughout the quarters, with an increasing trend from Q1 2023 to Q2 2023 before a slight decline in Q4 2023.
2. Return on assets (ROA) also displayed fluctuations but remained relatively stable, ranging from approximately 12% to over 21% throughout the quarters. There was a peak in Q1 2023 followed by a gradual decline in the subsequent quarters.
3. Return on total capital saw a consistent increase from around 19% to over 36% from Q1 2022 to Q4 2023, indicating an improving efficiency in generating returns from the company's total capital.
4. Return on equity (ROE) showed a similar upward trend, more prominently increasing from 15.90% in Q1 2022 to 39.07% in Q1 2023, then remaining at relatively high levels in the subsequent quarters.
Overall, the profitability ratios suggest that SM Energy Co is effectively utilizing its assets, capital, and equity to generate profits, demonstrating a positive financial performance over the periods analyzed.