Ovintiv Inc (OVV)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 9,152,000 | 10,661,000 | 12,464,000 | 8,658,000 | 6,087,000 |
| Property, plant and equipment | US$ in thousands | — | — | 10,338,000 | 8,761,000 | 9,450,000 |
| Fixed asset turnover | — | — | 1.21 | 0.99 | 0.64 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $9,152,000K ÷ $—K
= —
Based on the data provided for Ovintiv Inc's fixed asset turnover ratios from 2020 to 2024, we observe a trend of improvement in the company's efficiency in utilizing its fixed assets to generate sales. The fixed asset turnover ratio indicates how well a company is utilizing its fixed assets to generate revenue.
In 2020, the fixed asset turnover ratio was 0.64, suggesting that for every dollar of fixed assets, Ovintiv Inc generated $0.64 in sales. Over the next few years, there was a consistent improvement in this ratio. By the end of 2021, the ratio increased to 0.99, indicating that the company improved its efficiency in utilizing fixed assets to generate sales.
Further improvement was seen in 2022, with the fixed asset turnover ratio reaching 1.21, reflecting a significant enhancement in asset utilization efficiency. However, it's worth noting that the data for 2023 and 2024 is not available (denoted by "—"), which limits the ability to analyze the complete trend.
Overall, the increasing trend in the fixed asset turnover ratio from 2020 to 2022 suggests a positive development in Ovintiv Inc's efficiency in generating revenue from its fixed assets. Further monitoring of this ratio in the upcoming years will provide more insights into the company's continued performance in this aspect.
Peer comparison
Dec 31, 2024