SM Energy Co (SM)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 4,237,260 | 4,061,550 | 3,843,940 | 3,698,250 | 3,615,850 | 3,404,290 | 3,298,470 | 3,229,800 | 3,085,460 | 2,867,660 | 2,444,900 | 2,115,110 | 2,063,130 | 1,636,900 | 1,552,510 | 1,769,670 | 2,016,160 | 2,185,110 | 2,280,830 | 2,341,720 |
| ROE | 18.18% | 20.41% | 21.10% | 20.29% | 22.62% | 24.36% | 32.99% | 39.07% | 36.04% | 44.58% | 36.11% | 15.90% | 1.76% | -33.84% | -47.52% | -34.13% | -37.92% | -32.10% | -24.59% | -17.99% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $770,293K ÷ $4,237,260K
= 18.18%
Based on the data provided, SM Energy Co's return on equity (ROE) has exhibited a notable improvement over the past few quarters.
The ROE was consistently negative from March 2020 to March 2022, indicating that the company was not generating sufficient profits relative to its equity base during that period. However, starting from the second quarter of 2022, the ROE turned positive and began increasing steadily.
From June 2022 to June 2024, the ROE demonstrated a significant upward trend, reaching a peak of 32.99%. This indicates that SM Energy Co became more efficient in generating profits from shareholders' equity during these quarters.
Although there was a slight decrease in the ROE from June 2024 to December 2024, the ratio remained above 18%, suggesting that the company's profitability relative to its equity investment continues to be favorable.
Overall, the positive trend in SM Energy Co's ROE from 2022 to 2024 indicates an improvement in the company's financial performance and efficiency in utilizing shareholder equity to generate profits.
Peer comparison
Dec 31, 2024