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.