SM Energy Co (SM)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 817,880 | 1,111,950 | 36,229 | -764,614 | -187,001 |
| Total assets | US$ in thousands | 6,379,980 | 5,716,040 | 5,233,980 | 4,976,430 | 6,292,230 |
| ROA | 12.82% | 19.45% | 0.69% | -15.36% | -2.97% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $817,880K ÷ $6,379,980K
= 12.82%
SM Energy Co's return on assets (ROA) has fluctuated significantly over the past five years, ranging from a low of -15.36% in 2020 to a high of 19.45% in 2022. The ROA improved to 12.82% in 2023. The positive ROA figures in recent years indicate that the company is generating higher profits relative to its asset base, which is a positive sign for investors and creditors. However, the negative ROA values in 2020 and 2019 suggest that the company faced challenges during those periods in effectively utilizing its assets to generate profits. Overall, SM Energy Co's ROA performance shows variability but has shown improvement in recent years.
Peer comparison
Dec 31, 2023