SM Energy Co (SM)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,005,832 | 1,036,069 | 1,460,043 | 1,691,621 | 1,516,116 | 1,645,166 | 1,148,137 | 518,824 | 206,520 | -426,595 | -632,752 | -534,714 | -792,813 | -723,566 | -544,895 | -355,707 | -71,942 | 446,724 | 213,235 | 167,580 |
| Long-term debt | US$ in thousands | 1,575,330 | 1,574,550 | 1,573,770 | 1,572,990 | 3,144,420 | 3,142,860 | 3,141,300 | 3,960,780 | 3,754,620 | 4,155,260 | 4,331,750 | 4,386,300 | 2,214,320 | 2,175,040 | 193,000 | 2,645,380 | 2,610,300 | 2,735,770 | 2,721,240 | 2,646,290 |
| Total stockholders’ equity | US$ in thousands | 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 | 2,748,990 | 2,843,750 | 2,801,840 | 2,743,220 |
| Return on total capital | 19.38% | 20.81% | 29.97% | 35.22% | 24.34% | 27.37% | 20.55% | 8.54% | 3.55% | -7.37% | -10.75% | -8.69% | -18.74% | -16.59% | -22.03% | -7.13% | -1.34% | 8.01% | 3.86% | 3.11% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,005,832K ÷ ($1,575,330K + $3,615,850K)
= 19.38%
SM Energy Co's return on total capital has fluctuated over the past eight quarters, ranging from a low of 13.41% in Q1 2022 to a high of 36.57% in Q1 2023. The company's return on total capital has generally been strong, consistently above 20% in most quarters. This indicates that SM Energy Co has been effectively utilizing its total capital to generate profits for its shareholders. The significant increase in return on total capital from Q1 2023 to Q2 2023 suggests a notable improvement in the company's operational efficiency or profitability during that period. Overall, the trend in SM Energy Co's return on total capital demonstrates a good performance in capital allocation and operational effectiveness.
Peer comparison
Dec 31, 2023