Devon Energy Corporation (DVN)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 96.46% | 97.04% | 97.77% | 94.36% | 35.38% |
| Operating profit margin | 15.40% | 94.21% | 95.66% | 89.71% | -32.97% |
| Pretax margin | 22.97% | 30.07% | 40.45% | 23.58% | -66.84% |
| Net profit margin | 18.14% | 24.56% | 31.38% | 23.05% | -55.51% |
Based on the provided data, Devon Energy Corporation's profitability ratios have shown significant improvements over the years:
1. Gross Profit Margin: Devon Energy's gross profit margin has steadily increased from 35.38% in December 2020 to 96.46% in December 2024. This indicates the company's ability to efficiently generate profits from its revenue after accounting for the cost of goods sold.
2. Operating Profit Margin: The operating profit margin exhibited a remarkable turnaround, transitioning from a negative margin of -32.97% in December 2020 to a positive margin of 15.40% in December 2024. This suggests that Devon Energy has effectively managed its operating expenses and improved operational efficiency.
3. Pretax Margin: Devon Energy's pretax margin has also shown consistent growth, rising from -66.84% in December 2020 to 22.97% in December 2024. This implies that the company has been able to control its pre-tax expenses and enhance profitability before accounting for taxes.
4. Net Profit Margin: Although there was a dip in net profit margin from 2022 to 2024, the figure remained positive, ranging from 18.14% in December 2024 to 31.38% in December 2022. This suggests that Devon Energy has been able to maintain a healthy bottom line after accounting for all expenses, including taxes.
Overall, Devon Energy Corporation has shown significant improvements in its profitability ratios over the years, reflecting effective cost management, operational efficiency, and revenue optimization strategies.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.05% | 58.70% | 77.30% | 52.08% | -16.06% |
| Return on assets (ROA) | 9.48% | 15.30% | 25.36% | 13.38% | -27.04% |
| Return on total capital | 17.74% | 28.04% | 46.87% | 20.81% | -41.17% |
| Return on equity (ROE) | 19.94% | 31.07% | 53.86% | 30.37% | -92.89% |
Based on the data provided, Devon Energy Corporation's profitability ratios have shown significant fluctuations over the years.
1. Operating Return on Assets (Operating ROA): This ratio indicates how well the company is generating operating profits from its assets. Devon Energy Corporation's Operating ROA has displayed a notable improvement from -16.06% in 2020 to 77.30% in 2022, peaking at 77.30% before decreasing to 8.05% in 2024.
2. Return on Assets (ROA): ROA measures the company's efficiency in generating profits from its total assets. Devon Energy Corporation's ROA improved from -27.04% in 2020 to 25.36% in 2022, before declining to 9.48% in 2024.
3. Return on Total Capital: This ratio assesses the return generated from all forms of capital (both debt and equity). Devon Energy Corporation's Return on Total Capital showcased a positive trend, increasing from -41.17% in 2020 to 46.87% in 2022, before settling at 17.74% in 2024.
4. Return on Equity (ROE): ROE measures the return on shareholders' equity. Devon Energy Corporation's ROE has varied significantly, from a substantial -92.89% in 2020 to 53.86% in 2022, eventually declining to 19.94% in 2024.
Overall, the company's profitability ratios demonstrate fluctuating performance, with periods of improvement followed by declines. It is essential for stakeholders to monitor these ratios closely to gauge the company's financial health and performance over time.