Ovintiv Inc (OVV)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 10,883,000 | 12,464,000 | 8,658,000 | 6,087,000 | 6,726,000 |
| Property, plant and equipment | US$ in thousands | 14,640,000 | 9,468,000 | 8,761,000 | 9,450,000 | 15,191,000 |
| Fixed asset turnover | 0.74 | 1.32 | 0.99 | 0.64 | 0.44 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $10,883,000K ÷ $14,640,000K
= 0.74
The fixed asset turnover ratio for Ovintiv Inc has been fluctuating over the past five years, indicating varying levels of efficiency in utilizing its fixed assets to generate revenue.
In 2023, the fixed asset turnover ratio decreased to 0.74 from 1.31 in 2022, suggesting a decline in the company's ability to generate sales from its fixed assets. This decrease could be due to a decrease in sales relative to the value of fixed assets, indicating potential underutilization of fixed assets or inefficiencies in operations.
Comparing to 2021, the fixed asset turnover ratio was 0.98, showing a further decline in the efficiency of fixed asset utilization in 2023. The company may need to reassess its asset management strategies to improve efficiency and generate more revenue from its fixed assets.
The fixed asset turnover ratios for 2020 and 2019 were 0.64 and 0.44, respectively, indicating a historically lower level of efficiency in generating sales from fixed assets. This trend suggests that Ovintiv Inc has been facing challenges in maximizing the productivity of its fixed assets over the past few years.
Overall, the fluctuating trend in Ovintiv Inc's fixed asset turnover ratio highlights the importance of monitoring and optimizing the utilization of fixed assets to enhance operational efficiency and profitability.
Peer comparison
Dec 31, 2023