Devon Energy Corporation (DVN)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,062,000 | 4,631,000 | 4,637,000 | 4,505,000 | 4,972,000 | 5,103,000 | 6,498,000 | 8,095,000 | 8,134,000 | 8,239,000 | 6,740,000 | 4,555,000 | 3,277,000 | 1,454,000 | 286,000 | -719,000 | -2,957,000 | -3,501,000 | -3,153,000 | -1,917,000 |
| Long-term debt | US$ in thousands | 8,398,000 | 8,884,000 | 5,665,000 | 5,668,000 | 5,672,000 | 5,675,000 | 6,169,000 | 6,175,000 | 6,189,000 | 6,196,000 | 6,461,000 | 6,471,000 | 6,482,000 | 6,492,000 | 6,502,000 | 7,042,000 | 4,298,000 | 4,297,000 | 4,296,000 | 4,295,000 |
| Total stockholders’ equity | US$ in thousands | 14,496,000 | 14,277,000 | 12,551,000 | 12,167,000 | 12,061,000 | 11,639,000 | 11,021,000 | 10,977,000 | 11,167,000 | 10,873,000 | 10,090,000 | 9,300,000 | 9,262,000 | 8,924,000 | 8,399,000 | 8,353,000 | 2,885,000 | 3,023,000 | 3,227,000 | 3,919,000 |
| 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $4,062,000K ÷ ($8,398,000K + $14,496,000K)
= 17.74%
The return on total capital for Devon Energy Corporation has shown a fluctuating trend over the past few years, starting at negative percentages in early 2020 and steadily improving to positive figures by the end of 2021. The return on total capital saw significant growth from the negative values in 2020 to positive levels in 2021 and continued to rise through 2022.
From 2022 to early 2024, the return on total capital remained relatively stable, hovering around the mid to high 20% range. However, in the latter part of 2024, there was a slight decline to below 20%.
Overall, despite the fluctuations, the return on total capital for Devon Energy Corporation demonstrated an improving trend from negative figures to positive values, indicating a positive turnaround in the company's ability to generate returns relative to its capital employed.
Peer comparison
Dec 31, 2024