Ovintiv Inc (OVV)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 9,232,000 | 9,866,000 | 10,191,000 | 10,494,000 | 10,539,000 | 10,929,000 | 11,829,000 | 13,048,000 | 12,464,000 | 12,591,000 | 10,831,000 | 8,787,000 | 8,658,000 | 6,847,000 | 6,248,000 | 5,282,000 | 6,087,000 | 6,124,000 | 6,805,000 | 8,134,000 |
| Property, plant and equipment | US$ in thousands | — | — | — | — | — | 14,515,000 | 14,217,000 | 9,911,000 | 9,468,000 | 9,053,000 | 9,194,000 | 8,983,000 | 8,761,000 | 8,590,000 | 8,535,000 | 9,514,000 | 9,450,000 | 10,223,000 | 11,636,000 | 15,080,000 |
| Fixed asset turnover | — | — | — | — | — | 0.75 | 0.83 | 1.32 | 1.32 | 1.39 | 1.18 | 0.98 | 0.99 | 0.80 | 0.73 | 0.56 | 0.64 | 0.60 | 0.58 | 0.54 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $9,232,000K ÷ $—K
= —
The fixed asset turnover ratio measures a company's ability to generate revenue from its fixed assets. A higher ratio indicates more efficient utilization of fixed assets to generate sales.
Analyzing Ovintiv Inc's fixed asset turnover over the recent quarters, we see a fluctuating trend. In the early quarters of 2020, the ratio was around 0.5 to 0.6, suggesting that the company was generating about 50 to 60 cents of revenue for every dollar invested in fixed assets.
After a gradual increase throughout 2020 and into 2021, the ratio spiked to 1.18 in June 2022, signaling a significant improvement in efficiency in utilizing fixed assets to generate sales. This increase continued until September 2022, where the ratio reached 1.39, indicating further improvement.
However, the ratio decreased in the following quarters, dropping to 0.75 by September 2023. This decline may indicate challenges in effectively utilizing fixed assets to generate revenue, which could be attributed to various factors such as changes in demand, operational issues, or strategic shifts.
Notably, the data shows that the fixed asset turnover ratio has not been reported for the quarters after September 2023, suggesting potential data availability issues. This lack of recent data limits the ability to assess the company's current efficiency in generating revenue from fixed assets.
In conclusion, the trend of Ovintiv Inc's fixed asset turnover ratio has been variable, with periods of improvement and decline. Continued monitoring of this ratio will be important to gauge the company's efficiency in utilizing fixed assets and generating revenue in the future.
Peer comparison
Dec 31, 2024