Devon Energy Corporation (DVN)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 96.58% | 96.86% | 96.94% | 96.95% | 97.06% | 97.11% | 97.41% | 97.71% | 97.77% | 97.70% | 97.37% | 96.61% | 92.11% | 89.51% | 85.28% | 79.65% | 22.60% | 30.02% | 28.25% | 33.34% |
| 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% |
| Pretax margin | 22.97% | 27.14% | 27.54% | 27.46% | 30.07% | 30.61% | 35.94% | 40.21% | 40.45% | 41.05% | 37.02% | 29.85% | 23.58% | 11.76% | -0.84% | -21.48% | -66.84% | -73.25% | -58.77% | -30.19% |
| Net profit margin | 18.14% | 21.71% | 22.60% | 22.27% | 24.56% | 24.63% | 28.10% | 31.39% | 31.38% | 33.01% | 30.65% | 25.69% | 23.05% | 13.08% | 4.04% | -13.59% | -55.51% | -62.68% | -51.91% | -25.65% |
Devon Energy Corporation's profitability ratios have shown significant improvements over the years. The gross profit margin steadily increased from 33.34% in March 2020 to 96.58% in December 2024, indicating a strong ability to generate profits from its core business operations.
The operating profit margin, which was negative in the earlier periods, turned positive and soared from 15.63% in December 2024. This improvement suggests enhanced operational efficiency and cost management.
The pretax margin also exhibited a positive trend, increasing from -73.25% in September 2020 to 22.97% in December 2024. This indicates better control over pre-tax expenses and a more profitable business model.
The net profit margin showed a similar positive trajectory, rising from -62.68% in September 2020 to 18.14% in December 2024, showcasing enhanced profitability after facing losses in the previous periods.
Overall, Devon Energy Corporation's profitability ratios demonstrate a consistent and substantial improvement over the years, reflecting a successful strategy in boosting profitability and operational performance.
Return on investment
| 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 return on assets (Operating ROA) | 8.17% | 48.41% | 57.66% | 56.54% | 58.70% | 60.17% | 69.29% | 78.30% | 77.42% | 77.63% | 70.28% | 60.27% | 50.84% | 36.39% | 25.68% | 15.10% | -22.68% | -15.86% | -14.57% | -7.03% |
| Return on assets (ROA) | 9.48% | 11.25% | 13.92% | 13.40% | 15.30% | 15.66% | 20.46% | 25.71% | 25.36% | 26.83% | 22.70% | 16.48% | 13.38% | 5.72% | 1.37% | -3.18% | -27.04% | -31.18% | -29.15% | -16.64% |
| Return on total capital | 17.74% | 19.99% | 25.46% | 25.26% | 28.04% | 29.47% | 37.80% | 47.20% | 46.87% | 48.27% | 40.72% | 28.88% | 20.81% | 9.43% | 1.92% | -4.67% | -41.17% | -47.83% | -41.91% | -23.34% |
| Return on equity (ROE) | 19.94% | 23.84% | 27.90% | 27.52% | 31.07% | 32.61% | 43.36% | 54.85% | 53.86% | 58.13% | 52.18% | 38.59% | 30.37% | 13.50% | 3.27% | -7.79% | -92.89% | -106.52% | -93.55% | -47.31% |
Devon Energy Corporation's profitability has shown significant improvement over the past few years based on various profitability ratios.
Operating return on assets (Operating ROA) has increased steadily from negative percentages in early 2020 to reaching a peak of 77.63% in September 2022. However, there was a slight decline in the following quarters, but the ratio remained relatively high in comparison to the earlier periods. This indicates that Devon Energy has been able to generate more profit from its operations in relation to its total assets.
Return on assets (ROA) also displays a positive trend, moving from negative values in 2020 to reaching 13.92% by June 30, 2024. This metric measures the company's efficiency in using its assets to generate earnings, and the increase over time suggests improved asset utilization and profitability.
Return on total capital shows a similar pattern of improvement, with the ratio climbing from negative levels to 17.74% by December 31, 2024. This indicates that Devon Energy has been able to generate a higher return for its total invested capital, demonstrating effective capital management.
Return on equity (ROE) reflects the company's ability to generate profits from shareholders' equity. Devon Energy's ROE has shown a consistent upward trend, reaching 27.90% by June 30, 2024. This signals that the company has been successful in delivering increasing returns to its equity investors over the years.
Overall, the positive trajectory of these profitability ratios suggests that Devon Energy Corporation has enhanced its operational efficiency, asset utilization, and capital management, leading to improved profitability and value creation for its shareholders.
See also:
Devon Energy Corporation Profitability Ratios (Quarterly Data)