Ovintiv Inc (OVV)
Total 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 |
| Total assets | US$ in thousands | 19,987,000 | 15,056,000 | 14,055,000 | 14,469,000 | 21,487,000 |
| Total asset turnover | 0.54 | 0.83 | 0.62 | 0.42 | 0.31 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $10,883,000K ÷ $19,987,000K
= 0.54
Total asset turnover measures how efficiently a company generates revenue from its assets. A higher total asset turnover indicates better efficiency in asset utilization. Looking at Ovintiv Inc's total asset turnover over the past five years, we observe fluctuations in the ratio.
In 2023, the total asset turnover ratio decreased to 0.54 from 0.82 in 2022. This decline suggests that Ovintiv Inc generated less revenue per dollar of assets in 2023 compared to the previous year. Despite the drop, the company still managed to generate revenue at a reasonable pace relative to its asset base.
The ratio was above 1 in 2021, indicating that for every dollar of assets, Ovintiv Inc generated more than a dollar in revenue. This implies strong asset productivity and efficient operations during that period.
In comparison, the total asset turnover was lower in 2020 and 2019, at 0.42 and 0.31, respectively. These lower ratios suggest that the company was less efficient in utilizing its assets to generate revenue during those years.
Overall, while the total asset turnover ratio has fluctuated over the years, Ovintiv Inc should aim to maintain or increase this ratio to enhance its operational efficiency and maximize revenue generation from its asset base.
Peer comparison
Dec 31, 2023