Ovintiv Inc (OVV)

Liquidity ratios

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
Current ratio 0.51 0.52 0.44 0.52 0.60 0.45 0.45 0.53 0.61 0.51 0.51 0.54 0.58 0.40 0.43 0.36 0.51 0.70 0.89 1.04
Quick ratio 0.02 0.00 0.00 0.00 0.02 0.00 0.02 0.01 0.03 0.01 0.00 0.07 0.10 0.00 0.04 0.00 0.02 0.02 0.02 0.04
Cash ratio 0.02 0.00 0.00 0.00 0.02 0.00 0.02 0.01 0.03 0.01 0.00 0.07 0.10 0.00 0.04 0.00 0.02 0.02 0.02 0.04

Ovintiv Inc's liquidity ratios have shown some fluctuations over the period under review.

The current ratio has declined from 1.04 as of March 31, 2020, to 0.51 as of December 31, 2020, indicating a decreasing ability to cover its short-term obligations with current assets. The ratio then improved to 0.60 by December 31, 2023, before settling at 0.51 by December 31, 2024. Generally, a current ratio above 1 indicates a company can meet its short-term liabilities, so Ovintiv Inc's ratios suggest some fluctuation in its liquidity position over time.

The quick ratio, which measures the ability to cover current liabilities with the most liquid assets, has been relatively low throughout the period. The ratio ranges from 0.00 to 0.10, indicating challenges in meeting immediate obligations without relying on inventory.

The cash ratio, which focuses solely on cash and cash equivalents compared to current liabilities, also remains low, reflecting the company's limited ability to cover short-term debts with its cash reserves. The ratio fluctuates between 0.00 and 0.10 during the period.

Overall, while the current ratio shows some improvement in recent periods, the quick and cash ratios suggest that Ovintiv Inc may face liquidity challenges in meeting its short-term obligations with its current asset base. Investors and stakeholders should monitor these ratios closely to ensure the company's liquidity position does not deteriorate further.


Additional liquidity measure

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
Cash conversion cycle days 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

The cash conversion cycle for Ovintiv Inc remained stable at 0.00 days consistently from March 31, 2020, to December 31, 2024. This implies that the company efficiently manages its cash flow, working capital, and operating cycle. With a cash conversion cycle of 0.00 days, Ovintiv Inc is able to quickly convert its investments in inventory and accounts receivable into cash, indicating effective liquidity management and operational efficiency. This consistency suggests that the company has a streamlined process in place for managing its working capital, which is essential for sustaining financial health and supporting future growth initiatives.