SM Energy Co (SM)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 4,237,260 | 3,615,850 | 3,085,460 | 2,063,130 | 2,016,160 |
| ROE | 18.18% | 22.62% | 36.04% | 1.76% | -37.92% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $770,293K ÷ $4,237,260K
= 18.18%
ROE (Return on Equity) is a key financial ratio that measures a company's profitability relative to shareholders' equity. Analyzing SM Energy Co's ROE over the past five years reveals fluctuations in the company's ability to generate profits from shareholders' investments.
In December 31, 2020, SM Energy Co had a negative ROE of -37.92%, indicating that the company incurred a net loss relative to shareholders' equity. However, there was a significant improvement in December 31, 2021, with a ROE of 1.76%, suggesting a slight recovery in profitability.
By December 31, 2022, SM Energy Co demonstrated a substantial increase in ROE to 36.04%, reflecting a significant improvement in profitability and efficiency in utilizing shareholders' equity. The positive trend continued in December 31, 2023, with a ROE of 22.62%, indicating sustained profitability.
In the most recent fiscal year ending December 31, 2024, SM Energy Co maintained a respectable ROE of 18.18%, reflecting solid profitability relative to shareholders' equity. Overall, the fluctuation in ROE over the five-year period suggests varying levels of profitability and efficiency in utilizing shareholders' equity for generating returns.
Peer comparison
Dec 31, 2024