Flagship explainer

What drives SM ENERGY CO’s return on equity?

ROE is five filed business factors multiplied together.

DuPont return on equity factor treeReturn on equity branches into tax burden, interest burden, operating margin, asset turnover, and the equity multiplier.Return on equity14%Tax burden78%net income ÷ pretax incomeInterest burden83%pretax ÷ operating incomeOperating margin32%operating income ÷ revenueAsset turnover0.35×revenue ÷ average assetsEquity multiplier1.97×average assets ÷ average equityAs of 2025-12-31 · 1 SEC filing sourceBuy Like Buffett · buylikebuffett.com
DuPont source inputs
InputValueFiscal yearSource
$648MFY2025
Income before tax$830MFY2025
Operating income$1.0BFY2025
$3.1BFY2025
Ending assets$9.3BFY2025
Beginning assets$8.6BFY2024
$4.8BFY2025
$4.2BFY2024
Source: · event Dec 31, 2025 · retrieved Jul 26, 2026 · annual-row source set
Embed this chart

View the full SM ENERGY CO analysis at Buy Like Buffett