Ovintiv Inc (OVV)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | 492.67 | 146.65 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | — | — | — | — | — |
Based on the provided data for Ovintiv Inc, we can analyze the activity ratios as follows:
1. Inventory Turnover measures how efficiently the company is managing its inventory. In 2020, the inventory turnover ratio was 146.65, which increased significantly to 492.67 in 2021. The high inventory turnover ratio in 2021 indicates that Ovintiv Inc was able to sell its inventory more frequently during that year, showing efficient management of inventory levels. However, there is no data available for the years 2022-2024 to further analyze the trend.
2. Receivables Turnover is not available for any of the years provided. This ratio typically measures how efficiently a company is collecting its accounts receivables. The absence of data for this ratio makes it challenging to assess Ovintiv Inc's effectiveness in converting credit sales into cash.
3. Payables Turnover is also not available for any of the years provided. This ratio helps in understanding how effectively the company is managing its accounts payable. Without this data, it is difficult to evaluate Ovintiv Inc's payment practices and relationships with suppliers.
4. Working Capital Turnover, which shows how effectively a company is using its working capital to generate sales, is not available for any of the years provided. This ratio helps in assessing the company's efficiency in utilizing its current assets and liabilities to drive revenue.
In conclusion, based on the available data, we can see that Ovintiv Inc significantly improved its inventory turnover in 2021, indicating better inventory management. However, the lack of data for receivables turnover, payables turnover, and working capital turnover limits our ability to provide a more comprehensive analysis of the company's overall efficiency in managing its assets and liabilities.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | 0.74 | 2.49 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data for Ovintiv Inc, the activity ratios can be analyzed as follows:
1. Days of Inventory on Hand (DOH):
- In 2020, the company had inventory that lasted on average for 2.49 days.
- By the end of 2021, the number of days of inventory on hand decreased significantly to 0.74 days.
- There is no data available for the years 2022, 2023, and 2024, indicating a lack of information or potential changes in reporting.
2. Days of Sales Outstanding (DSO):
- Data for days of sales outstanding is not available for any of the years from 2020 to 2024. This lack of information makes it challenging to assess the efficiency of the company in collecting its accounts receivable.
3. Number of Days of Payables:
- No data on the number of days of payables is provided for the years 2020 to 2024. This absence of information makes it difficult to evaluate how long the company takes to pay its suppliers.
Overall, without complete data for the activity ratios, a comprehensive analysis of Ovintiv Inc's efficiency in managing its inventory, receivables, and payables over the years is not possible. It is essential for investors and stakeholders to have access to complete and accurate financial information to assess the company's operational effectiveness.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 1.21 | 0.99 | 0.64 |
| Total asset turnover | 0.48 | 0.53 | 0.83 | 0.62 | 0.42 |
Long-term activity ratios provide insights into how efficiently a company is utilizing its assets to generate sales revenue.
1. Fixed Asset Turnover:
- Ovintiv Inc's fixed asset turnover ratio has been gradually increasing over the years. In 2020, the ratio was 0.64, indicating that the company generated $0.64 in sales for every $1 of fixed assets. By 2022, the ratio improved significantly to 1.21, demonstrating that the company is generating more revenue per fixed asset invested.
- The absence of data for 2023 and 2024 makes it difficult to assess the trend accurately. This missing data may be due to a change in reporting practices or other factors that impacted fixed asset turnover.
2. Total Asset Turnover:
- Ovintiv Inc's total asset turnover ratio shows fluctuation in the efficiency of asset utilization. The ratio increased from 0.42 in 2020 to 0.83 in 2022, indicating an enhanced ability to generate sales relative to total assets held by the company.
- However, the ratio dropped to 0.53 in 2023 and further to 0.48 in 2024, suggesting a decrease in revenue generated for each dollar of total assets. This decline could be attributed to various factors such as changes in business operations, market conditions, or asset management strategies.
In conclusion, Ovintiv Inc's long-term activity ratios reveal a mixed performance in asset utilization efficiency, with improvements in fixed asset turnover but fluctuations in total asset turnover. Further analysis of the underlying factors affecting these ratios would be necessary to gain a more comprehensive understanding of the company's operational efficiency over time.