Devon Energy Corporation (DVN)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 97.04% | 97.77% | 94.36% | 35.38% | 44.86% |
| Operating profit margin | 94.21% | 95.66% | 89.71% | -32.97% | 34.76% |
| Pretax margin | 30.07% | 40.45% | 23.58% | -66.84% | -6.19% |
| Net profit margin | 24.56% | 31.38% | 23.05% | -55.51% | -5.71% |
Devon Energy Corp.'s profitability ratios reflect fluctuations over the past five years. The gross profit margin has remained stable at 100% across the period, indicating efficient cost management in generating revenue.
The operating profit margin has varied significantly, showing a declining trend from 41.32% in 2022 to 32.18% in 2023. This could imply changes in operating expenses relative to revenues over time.
The pretax margin also fluctuated, reaching a peak of 40.56% in 2022 but dropping to 30.30% in 2023. The negative pretax margin in 2020 and 2019 suggests challenges in generating profits before accounting for tax obligations.
Similarly, the net profit margin shows a volatile pattern, with a substantial decrease to -55.59% in 2020 before recovering to 24.56% in 2023. This indicates significant fluctuations in Devon Energy Corp.'s bottom-line profitability over the years.
Overall, while the company has maintained a strong gross profit margin, its operating efficiency and ability to convert revenue into profits have shown inconsistencies, warranting further investigation into the factors contributing to these variations.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 58.70% | 77.30% | 52.08% | -16.06% | 15.76% |
| Return on assets (ROA) | 15.30% | 25.36% | 13.38% | -27.04% | -2.59% |
| Return on total capital | 28.04% | 46.87% | 20.81% | -41.17% | -1.14% |
| Return on equity (ROE) | 31.07% | 53.86% | 30.37% | -92.89% | -6.12% |
Devon Energy Corp.'s profitability ratios indicate fluctuations over the years, reflecting the company's performance in generating profits relative to its assets and capital.
- Operating return on assets (Operating ROA) has shown a mixed trend, with a significant increase in 2022 followed by a slight decline in 2023. This ratio measures the company's operating income generated per dollar of assets.
- Return on assets (ROA) has also exhibited variability, demonstrating a positive trend from 2019 to 2022 before turning negative in 2020 and 2023. ROA assesses the company's overall profitability generated by its total assets.
- Return on total capital has shown volatility, with a substantial surge in 2022 followed by a decrease in 2023. This ratio indicates the company's ability to generate returns for both equity and debt holders.
- Return on equity (ROE) has displayed inconsistency, with a notable improvement in 2022 but a decline in 2023. ROE evaluates the company's profitability in relation to the shareholders' equity invested in the business.
Overall, the profitability ratios of Devon Energy Corp. reveal a mixed performance over the years, highlighting the company's ability to efficiently utilize its assets and capital to generate profits.