SM Energy Co (SM)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 770,293 | 817,880 | 1,111,950 | 36,229 | -764,614 |
| Total assets | US$ in thousands | 8,576,650 | 6,379,980 | 5,716,040 | 5,233,980 | 4,976,430 |
| ROA | 8.98% | 12.82% | 19.45% | 0.69% | -15.36% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $770,293K ÷ $8,576,650K
= 8.98%
Based on the data provided, SM Energy Co's return on assets (ROA) has shown significant fluctuations over the past five years.
- As of December 31, 2020, the company had a negative ROA of -15.36%, indicating that the company was not effectively utilizing its assets to generate profits.
- However, by the end of 2021, the ROA had improved to 0.69%, suggesting that the company's asset efficiency had slightly increased.
- The following year, by December 31, 2022, SM Energy Co's ROA experienced a substantial jump to 19.45%, indicating a significant improvement in the company's ability to generate profits from its assets.
- In 2023, the ROA remained strong at 12.82%, indicating that the company continued to efficiently utilize its assets to generate returns.
- By the end of 2024, the ROA had decreased to 8.98%, indicating a slight decline in the company's asset efficiency compared to the previous year.
Overall, SM Energy Co's ROA has shown variability over the past five years, with significant improvements in some years and slight declines in others. It is important for the company to continuously monitor and manage its asset utilization to ensure sustained profitability and efficiency in the future.
Peer comparison
Dec 31, 2024