Ovintiv Inc (OVV)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 88.28% | 90.00% | 87.20% | -10.14% | 79.19% |
| Operating profit margin | 26.32% | 30.91% | 17.54% | -88.66% | 8.89% |
| Pretax margin | 23.06% | 28.56% | 14.31% | -94.14% | 4.68% |
| Net profit margin | 19.16% | 29.18% | 16.35% | -100.16% | 3.48% |
Ovintiv Inc's profitability ratios indicate varying levels of performance over the past five years. The company has consistently maintained a strong gross profit margin of 100%, reflecting its ability to effectively manage production costs and generate revenue.
In terms of operating profit margin, Ovintiv Inc's performance has fluctuated. The margin decreased from 30.53% in 2022 to 25.83% in 2023, suggesting a slight decline in operational efficiency. However, compared to the lower margins in 2020 and 2019, the company has shown improvement.
The pretax margin also demonstrates fluctuating performance, with a notable anomaly in 2020 when the margin dropped significantly to -95.25%. This negative margin indicates that Ovintiv Inc incurred substantial losses before tax that year. However, the company rebounded in 2021, 2022, and 2023, showing positive pretax margins.
Net profit margin, which reflects the company's bottom-line profitability, has also varied. Ovintiv Inc experienced a significant net loss in 2020, with a margin of -101.35%. Subsequently, the company improved its performance, achieving positive net profit margins in 2021, 2022, and 2023.
Overall, Ovintiv Inc's profitability ratios highlight its ability to manage costs effectively and improve profitability over the years, despite some fluctuations in performance. Investors may find these ratios useful in assessing the company's financial health and performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 14.33% | 25.59% | 10.81% | -37.30% | 2.78% |
| Return on assets (ROA) | 10.43% | 24.16% | 10.07% | -42.14% | 1.09% |
| Return on total capital | 18.11% | 35.62% | 16.01% | -52.52% | 4.12% |
| Return on equity (ROE) | 20.11% | 47.30% | 27.91% | -158.90% | 2.36% |
Ovintiv Inc's profitability ratios have displayed varying trends over the past five years.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA has fluctuated but generally shows positive trends from 2019 to 2023, indicating the company's ability to generate operating profits relative to its total assets.
- The ratio peaked in 2022 at 25.14% before decreasing to 13.97% in 2023.
2. Return on Assets (ROA):
- ROA demonstrates the company's overall ability to generate profits from its assets.
- While the trend improved significantly from negative figures in 2020 to positive results in subsequent years, there was a notable decrease in 2023 compared to 2022.
3. Return on Total Capital:
- This ratio reflects the return on all capital invested in the company, including debt and equity.
- Ovintiv Inc showed a consistently increasing trend from 2019 to 2023, reaching a peak of 33.26% in 2022 before slightly decreasing in 2023.
4. Return on Equity (ROE):
- ROE indicates the return on shareholders' equity, reflecting how efficiently the company is utilizing shareholder funds to generate profits.
- Notably, there was a sharp decline in ROE in 2021 and 2023, possibly due to reduced profitability or increased equity base.
In summary, Ovintiv Inc's profitability ratios have exhibited mixed performance over the years, with fluctuations in some ratios while others trended positively. Further analysis of the company's financial performance and operational strategies would be necessary to fully understand the factors driving these profitability ratios.