Devon Energy Corporation (DVN)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	2,454,000	14,375,000	18,337,000	10,950,000	-1,592,000
Revenue	US$ in thousands	15,940,000	15,258,000	19,169,000	12,206,000	4,828,000
Operating profit margin		15.40%	94.21%	95.66%	89.71%	-32.97%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $2,454,000K ÷ $15,940,000K
= 15.40%

The operating profit margin of Devon Energy Corporation has shown significant variation over the years based on the provided data. In December 31, 2020, the operating profit margin was -32.97%, indicating that the company had a negative profitability from its core operations. The following year, in December 31, 2021, there was a significant turnaround with a substantial increase to 89.71%, reflecting a strong improvement in operational efficiency.

In the subsequent years, the operating profit margin continued to increase, reaching 95.66% in December 31, 2022, and 94.21% in December 31, 2023. These high percentages suggest that Devon Energy Corporation was able to generate more profits from its core business activities relative to its revenue during those periods.

However, there was a notable drop in the operating profit margin to 15.40% in December 31, 2024, indicating a decline in profitability compared to the previous years. This decline could be due to various factors such as changes in operating costs, revenue fluctuations, or other external economic conditions impacting the company's financial performance.

Overall, the analysis of Devon Energy Corporation's operating profit margin highlights the company's ability to improve profitability significantly in recent years, but also underscores the importance of monitoring and managing operational efficiencies to sustain financial success.