Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. SM Energy Co's annualized net income for the quarter that ended in Dec. 2023 was $988 Mil. SM Energy Co's average shareholder tangible equity for the quarter that ended in Dec. 2023 was $3,510 Mil. Therefore, SM Energy Co's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2023 was 28.16%.
The historical rank and industry rank for SM Energy Co's Return-on-Tangible-Equity or its related term are showing as below:
SM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -34.84 Med: -2.4 Max: 43.19
Current: 24.58
During the past 13 years, SM Energy Co's highest Return-on-Tangible-Equity was 43.19%. The lowest was -34.84%. And the median was -2.40%.
SM's Return-on-Tangible-Equity is ranked better than 76.92% of 1005
companies
in the Oil & Gas industry
Industry Median: 8.96
vs SM: 24.58
SM Energy Co Return-on-Tangible-Equity Historical Data
The historical data trend for SM Energy Co's Return-on-Tangible-Equity 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 Return-on-Tangible-Equity
For the Oil & Gas E&P subindustry, SM Energy Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, SM Energy Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where SM Energy Co's Return-on-Tangible-Equity falls into.
SM Energy Co Return-on-Tangible-Equity Calculation
SM Energy Co's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2023 is calculated as
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Dec. 2023) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
SM Energy Co (NYSE:SM) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
SM Energy Co Return-on-Tangible-Equity Related Terms
Thank you for viewing the detailed overview of SM Energy Co's Return-on-Tangible-Equity 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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