Devon Energy Corporation (DVN)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	2,891,000	3,404,000	3,502,000	3,348,000	3,747,000	3,796,000	4,779,000	6,021,000	6,015,000	6,320,000	5,265,000	3,589,000	2,813,000	1,205,000	275,000	-651,000	-2,680,000	-3,220,000	-3,019,000	-1,854,000
Total assets	US$ in thousands	30,489,000	30,263,000	25,162,000	24,978,000	24,490,000	24,241,000	23,355,000	23,420,000	23,721,000	23,557,000	23,194,000	21,778,000	21,025,000	21,057,000	20,065,000	20,457,000	9,912,000	10,326,000	10,357,000	11,144,000
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%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $2,891,000K ÷ $30,489,000K
= 9.48%

Devon Energy Corporation's return on assets (ROA) has shown significant fluctuations over the past few years. The company experienced negative ROA figures in the first half of 2020 and into the end of the year, indicating challenges in generating profits from its assets during that period. However, the ROA started to improve in early 2021, turning positive and steadily increasing through 2022 and into the first half of 2024.

The positive trend in ROA indicates that Devon Energy has been more effective in utilizing its assets to generate earnings and improve overall profitability. The company's ROA peaked at 26.83% in the third quarter of 2022, demonstrating a strong performance in asset efficiency. However, there was a slight decline in ROA in the second half of 2024, possibly signaling some challenges in maintaining the same level of asset productivity.

Overall, Devon Energy Corporation's ROA trajectory reflects a mix of challenges and improvements in asset utilization and profitability, highlighting the importance of efficient asset management in driving financial performance.