SM Energy Co (SM)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 3,615,850 | 3,085,460 | 2,063,130 | 2,016,160 | 2,748,990 |
| ROE | 22.62% | 36.04% | 1.76% | -37.92% | -6.80% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $817,880K ÷ $3,615,850K
= 22.62%
The return on equity (ROE) for SM Energy Co has fluctuated significantly over the past five years. In 2023, the ROE stood at 22.62%, showing a decrease from the previous year's level of 36.04%. Despite the decrease, the company still managed to generate a respectable return for its shareholders.
In 2021, SM Energy Co experienced a significant improvement in its ROE compared to the previous years, with a ROE of 1.76%, marking a noticeable recovery. However, in 2020 and 2019, the company's ROE was negative, indicating that the company was not generating profits sufficient to cover its shareholders' equity.
Overall, the trend in SM Energy Co's ROE shows a mixed performance over the past five years, with significant fluctuations. It is crucial for the company to continue to focus on improving its profitability and operational efficiency to sustain and enhance its return on equity in the future.
Peer comparison
Dec 31, 2023