SM Energy Co (SM)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	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	-187,001	224,786	46,629	13,438
Total assets	US$ in thousands	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	6,292,230	6,453,080	6,391,940	6,286,620
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%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $817,880K ÷ $6,379,980K
= 12.82%

The return on assets (ROA) for SM Energy Co has exhibited fluctuating trends over the past eight quarters. In Q1 2022, the ROA was the lowest at 6.23%, indicating that the company generated a lower return relative to its total assets during that period. Subsequently, the ROA experienced an upward trend, reaching its peak in Q1 2023 at 21.49%, reflecting higher efficiency in generating profit from its assets. However, in the most recent quarter, Q4 2023, the ROA decreased to 12.82%, signaling a decline in the company's profitability relative to its assets compared to the previous quarters. Overall, the company's ROA has shown variability, with periods of both improvement and decline, highlighting the importance of monitoring and analyzing financial performance consistently to identify trends and make informed decisions.