Ovintiv Inc (OVV)

Total 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
Total assets US$ in thousands 19,254,000 19,987,000 15,056,000 14,055,000 14,469,000
Total asset turnover 0.48 0.53 0.83 0.62 0.42

December 31, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $9,152,000K ÷ $19,254,000K
= 0.48

Based on the provided data, Ovintiv Inc's total asset turnover has shown fluctuations over the years. The ratio increased from 0.42 in December 31, 2020, to 0.83 in December 31, 2022, indicating an improvement in the company's efficiency in generating sales from its total assets. However, there was a decline in total asset turnover to 0.53 in December 31, 2023, and further to 0.48 by December 31, 2024.

The increase in total asset turnover from 2020 to 2022 suggests that Ovintiv Inc was able to generate more revenue from its assets, possibly due to increased sales or better asset utilization during this period. However, the subsequent decrease in 2023 and 2024 may indicate challenges in maintaining this level of efficiency or a shift in the company's asset base.

Overall, the trend in total asset turnover for Ovintiv Inc reflects varying degrees of effectiveness in utilizing its assets to generate sales revenue over the years, highlighting the importance of monitoring and optimizing asset management strategies.