Ovintiv Inc (OVV)
Total 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 |
| Total assets | US$ in thousands | 19,254,000 | 70,914,000 | 19,809,000 | 19,834,000 | 19,987,000 | 19,900,000 | 19,519,000 | 15,123,000 | 15,056,000 | 14,374,000 | 14,923,000 | 14,900,000 | 14,055,000 | 13,636,000 | 13,767,000 | 14,534,000 | 14,469,000 | 15,157,000 | 16,795,000 | 21,505,000 |
| Total asset turnover | 0.48 | 0.14 | 0.51 | 0.53 | 0.53 | 0.55 | 0.61 | 0.86 | 0.83 | 0.88 | 0.73 | 0.59 | 0.62 | 0.50 | 0.45 | 0.36 | 0.42 | 0.40 | 0.41 | 0.38 |
December 31, 2024 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $9,232,000K ÷ $19,254,000K
= 0.48
Based on the data provided, Ovintiv Inc's total asset turnover ratio has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The total asset turnover ratio measures the efficiency of a company in utilizing its assets to generate sales.
The total asset turnover ratio of Ovintiv Inc started at 0.38 on March 31, 2020, indicating that for every dollar of assets held by the company, it generated $0.38 in sales. Over the next few quarters, the ratio gradually increased to 0.73 by June 30, 2022, and reached its peak at 0.88 on September 30, 2022, showing improved efficiency in utilizing assets to generate sales.
However, after the peak, there was a decline in the total asset turnover ratio to 0.14 by September 30, 2024, indicating a significant decrease in the efficiency of asset utilization for generating sales.
It is important to note that a low total asset turnover ratio may suggest underutilization of assets or inefficiencies in the sales generation process, whereas a high ratio typically signifies effective asset management and strong sales performance.
In conclusion, Ovintiv Inc's total asset turnover ratio has displayed variability over the period, reflecting fluctuations in the company's efficiency in generating sales relative to its asset base. Further analysis and monitoring of this ratio will be crucial to assess the company's operational performance and asset management strategies.
Peer comparison
Dec 31, 2024