Devon Energy Corporation (DVN)

Operating profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Operating income (ttm)	US$ in thousands	2,492,000	14,651,000	14,508,000	14,123,000	14,375,000	14,585,000	16,183,000	18,339,000	18,365,000	18,288,000	16,300,000	13,125,000	10,690,000	7,662,000	5,153,000	3,090,000	-2,248,000	-1,638,000	-1,509,000	-783,000
Revenue (ttm)	US$ in thousands	15,940,000	15,682,000	15,494,000	15,031,000	15,258,000	15,412,000	17,008,000	19,180,000	19,169,000	19,143,000	17,177,000	13,968,000	12,206,000	9,213,000	6,814,000	4,791,000	4,828,000	5,137,000	5,816,000	7,228,000
Operating profit margin		15.63%	93.43%	93.64%	93.96%	94.21%	94.63%	95.15%	95.62%	95.81%	95.53%	94.89%	93.96%	87.58%	83.17%	75.62%	64.50%	-46.56%	-31.89%	-25.95%	-10.83%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $2,492,000K ÷ $15,940,000K
= 15.63%

The operating profit margin of Devon Energy Corporation has shown a significant improvement over the last few quarters. Starting from negative margins in March 2020, the company steadily progressed to positive margins by March 2021. The trend continued with consistent growth, reaching a peak operating profit margin of 95.81% by December 2022.

However, a slight decline was observed in the following quarters, with the margin hovering around the mid-90% range until December 2024, where there was a sharp decrease to 15.63%. This substantial drop in the operating profit margin in the last quarter of 2024 compared to the previous periods raises concerns and may warrant further investigation into the reasons behind this downturn.