SM Energy Co's gross profit for the
three
months ended in Dec. 2023 was $280 Mil. SM Energy Co's gross profit for the trailing twelve months (TTM) ended in Dec. 2023 was $1,110 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. SM Energy Co's gross profit for the
three
months ended in Dec. 2023 was $280 Mil. SM Energy Co's Revenue for the
three
months ended in Dec. 2023 was $607 Mil. Therefore, SM Energy Co's Gross Margin % for the quarter that ended in Dec. 2023 was 46.21%.
SM Energy Co had a gross margin of 46.21% for the quarter that ended in Dec. 2023 => Durable competitive advantage
During the past 13 years, the highestGross Margin % of SM Energy Co was 63.40%. The lowest was -17.62%. And the median was 23.10%.
SM Energy Co Gross Profit Historical Data
The historical data trend for SM Energy Co's Gross Profit can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of SM Energy Co's Gross Profit
For the Oil & Gas E&P subindustry, SM Energy Co's Gross Profit, along with its competitors' market caps and Gross Profit data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
SM Energy Co's Gross Profit Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, SM Energy Co's Gross Profit distribution charts can be found below:
* The bar in red indicates where SM Energy Co's Gross Profit falls into.
SM Energy Co Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
SM Energy Co's Gross Profit for the fiscal year that ended in Dec. 2023 is calculated as
Gross Profit for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,110 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
SM Energy Co (NYSE:SM) Gross Profit Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
SM Energy Co had a gross margin of 46.21% for the quarter that ended in Dec. 2023 => Durable competitive advantage
SM Energy Co Gross Profit Related Terms
Thank you for viewing the detailed overview of SM Energy Co's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
SM Energy Co is an independent energy company engaged in the acquisition, exploration, development, and production of crude oil and condensate, natural gas, and natural gas liquids. Operating primarily out of the United States, the company actively participates in joint ventures, prospects/leaseholds, and drill-to-earn opportunities. The majority of the company's revenue is derived from some of the United States' premier drilling locations. Drilling location interests have been traditionally obtained through oil and gas leases from third parties. SM Energy relies on its fleet of geologists, geophysicists, landmen, and engineers to help extract the full potential out of all properties held.
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