Devon Energy Corporation (DVN)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	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	-107,000	2,122,000	4,344,000	3,402,000
Long-term debt	US$ in thousands	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	4,294,000	4,295,000	4,294,000	5,786,000
Total stockholders’ equity	US$ in thousands	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	5,802,000	6,542,000	6,994,000	7,857,000
Return on total capital		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%	-1.06%	19.58%	38.48%	24.94%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $4,972,000K ÷ ($5,672,000K + $12,061,000K)
= 28.04%

Devon Energy Corp.'s return on total capital has shown fluctuation over the past eight quarters, ranging from 26.54% in Q4 2023 to a high of 44.97% in Q1 2023. Generally, the company has demonstrated strong performance in generating returns from its total capital investment. The trend indicates that there was a notable increase in Q1 2023 compared to previous quarters, followed by a slight decline in Q2 and Q3 2023. It is essential to assess the underlying factors contributing to these changes to determine the company's overall capital utilization efficiency and profitability.