Ovintiv Inc (OVV)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,369,000 | 1,676,000 | 1,695,000 | 1,587,000 | 1,247,000 |
| Total current liabilities | US$ in thousands | 2,681,000 | 2,812,000 | 2,780,000 | 2,748,000 | 2,423,000 |
| Current ratio | 0.51 | 0.60 | 0.61 | 0.58 | 0.51 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,369,000K ÷ $2,681,000K
= 0.51
The current ratio of Ovintiv Inc has shown fluctuations over the past five years. As of December 31, 2020, the current ratio was relatively low at 0.51, indicating that the company may have had difficulties meeting its short-term obligations with its current assets. However, there has been a gradual improvement in the current ratio in subsequent years.
By December 31, 2021, the current ratio had increased to 0.58, suggesting a slightly better ability to cover short-term liabilities with current assets. This positive trend continued into December 31, 2022, with a further improvement to 0.61.
Although there was a slight dip in the current ratio to 0.60 by December 31, 2023, it still remained above the 0.5 mark, indicating a relatively stable liquidity position for the company. However, by December 31, 2024, the current ratio decreased back to 0.51, signaling a potential decline in the company's ability to cover short-term obligations once again.
Overall, while there have been fluctuations in Ovintiv Inc's current ratio over the years, the company seems to have made some progress in strengthening its liquidity position. It is important for stakeholders to monitor this ratio closely to assess the company's short-term financial health and its ability to meet upcoming obligations.
Peer comparison
Dec 31, 2024