Devon Energy Corporation (DVN)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 4,972,000 | 8,134,000 | 3,277,000 | -2,957,000 | -115,000 |
| Long-term debt | US$ in thousands | 5,672,000 | 6,189,000 | 6,482,000 | 4,298,000 | 4,294,000 |
| Total stockholders’ equity | US$ in thousands | 12,061,000 | 11,167,000 | 9,262,000 | 2,885,000 | 5,802,000 |
| Return on total capital | 28.04% | 46.87% | 20.81% | -41.17% | -1.14% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $4,972,000K ÷ ($5,672,000K + $12,061,000K)
= 28.04%
The return on total capital for Devon Energy Corp. has exhibited variability over the past five years. It stood at 26.54% as of December 31, 2023, showing a decline from the previous year's figure of 44.35%. Despite this decrease, the return remains relatively strong compared to earlier years, such as 2020 when it was negative (-1.79%). The company's return on total capital was notably higher in 2022 compared to the current year, indicating a potential shift in capital allocation or operational efficiency. Overall, the trend in return on total capital reflects fluctuations in the company's ability to generate profits relative to its total capital employed, with 2023 showing a notable decrease from the previous year.
Peer comparison
Dec 31, 2023