SM Energy Co (SM)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	770,293	829,126	810,946	750,527	817,880	829,232	1,088,129	1,261,740	1,111,952	1,278,389	882,742	336,262	36,229	-553,846	-737,731	-603,988	-764,614	-701,494	-560,968	-421,328
Total assets	US$ in thousands	8,576,650	8,027,770	6,657,010	6,398,460	6,379,980	6,078,570	5,992,630	5,870,160	5,716,040	5,651,510	5,339,120	5,395,780	5,233,980	5,061,960	5,053,000	5,015,640	4,976,430	5,122,280	5,267,630	5,615,020
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%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $770,293K ÷ $8,576,650K
= 8.98%

SM Energy Co's return on assets (ROA) has shown a significant improvement over the past few quarters. The company had negative ROA figures ranging from -7.50% to -15.36% during the first three quarters of 2020, indicating poor asset utilization and profitability. However, there was a noticeable turnaround starting from the first quarter of 2022, with ROA turning positive and increasing steadily.

From March 2022 to December 2024, SM Energy Co's ROA improved consistently from 6.23% to 8.98%. This upward trend suggests that the company has been able to effectively generate earnings from its assets, reflecting better operational efficiency and profitability. The peak ROA of 22.62% in September 2022 indicates a strong performance in utilizing its assets to generate profits.

Overall, the increasing trend in ROA for SM Energy Co is a positive sign of enhanced asset efficiency and profitability, signaling a potentially promising outlook for the company's financial performance.