Ovintiv Inc (OVV)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,676,000 | 1,695,000 | 1,587,000 | 1,247,000 | 1,869,000 |
| Total current liabilities | US$ in thousands | 2,812,000 | 2,780,000 | 2,748,000 | 2,423,000 | 2,432,000 |
| Current ratio | 0.60 | 0.61 | 0.58 | 0.51 | 0.77 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,676,000K ÷ $2,812,000K
= 0.60
The current ratio of Ovintiv Inc has shown a declining trend over the past five years, moving from 0.77 in 2019 to 0.60 in 2023. This indicates a decrease in the company's ability to cover its short-term obligations with its current assets.
A current ratio below 1 typically suggests that a company may have difficulty meeting its short-term liabilities with its current assets alone. Ovintiv's current ratio has been consistently below 1 for the past five years, which may indicate potential liquidity challenges or inefficiencies in managing its short-term resources.
It is important for investors and analysts to further investigate the reasons behind this declining trend in Ovintiv's current ratio, as it could signify underlying issues in the company's financial health and liquidity position. Additionally, comparing the current ratio to industry benchmarks and peers can provide further insights into Ovintiv's financial performance and position in the market.
Peer comparison
Dec 31, 2023