SM Energy Co (SM)
Financial leverage ratio
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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Total assets | US$ in thousands | 8,576,650 | 8,027,770 | 6,657,010 | 6,398,460 | 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 |
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 |
Financial leverage ratio | 2.02 | 1.98 | 1.73 | 1.73 | 1.76 | 1.79 | 1.82 | 1.82 | 1.85 | 1.97 | 2.18 | 2.55 | 2.54 | 3.09 | 3.25 | 2.83 | 2.47 | 2.34 | 2.31 | 2.40 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,576,650K ÷ $4,237,260K
= 2.02
The financial leverage ratio of SM Energy Co has exhibited fluctuations over the period analyzed. The ratio decreased from 2.40 as of March 31, 2020, to 1.76 as of December 31, 2023. This downward trend indicates that the company reduced its reliance on debt to finance its operations relative to its equity during this period.
However, in the subsequent quarters, the financial leverage ratio increased slightly to 2.02 by December 31, 2024. This uptick suggests that there was a slight increase in the company's debt levels compared to the equity levels at the end of 2024.
Overall, the trend in SM Energy Co's financial leverage ratio indicates a fluctuation in its capital structure, with periods of decreases and increases in leverage ratios. It is essential for stakeholders to monitor these changes to assess the company's debt management and financial risk levels effectively.
Peer comparison
Dec 31, 2024