Ovintiv Inc (OVV)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 54.45% | 46.57% | 58.54% | 48.79% | 44.59% |
| Operating profit margin | 17.25% | 26.86% | 30.91% | 17.54% | 10.00% |
| Pretax margin | 14.76% | 23.54% | 28.56% | 14.31% | -94.14% |
| Net profit margin | 12.29% | 19.56% | 29.18% | 16.35% | -100.16% |
Ovintiv Inc's profitability ratios have shown varying trends over the years.
- Gross profit margin has been on an upward trend from 44.59% in 2020 to 54.45% in 2024, indicating the company's ability to efficiently produce goods and services.
- Operating profit margin saw a significant increase from 10.00% in 2020 to 30.91% in 2022, before declining slightly to 17.25% in 2024. This suggests improvements in cost management and operational efficiency during this period.
- Pretax margin had a notable recovery from a negative -94.14% in 2020 to 28.56% in 2022, before moderating to 14.76% in 2024. This indicates a turnaround in the company's ability to generate profits before taxes.
- Net profit margin showed a substantial improvement from -100.16% in 2020 to 29.18% in 2022. However, it decreased to 12.29% in 2024, which may suggest increased costs or a decrease in revenue relative to the previous year.
Overall, Ovintiv Inc has made strides in improving its profitability metrics, with varying degrees of success in different periods. Further analysis of the company's cost structures and revenue streams may provide insights into future profitability trends.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.20% | 14.33% | 25.59% | 10.81% | 4.21% |
| Return on assets (ROA) | 5.84% | 10.43% | 24.16% | 10.07% | -42.14% |
| Return on total capital | 17.07% | 27.63% | 50.34% | 31.12% | -139.67% |
| Return on equity (ROE) | 10.89% | 20.11% | 47.30% | 27.91% | -158.90% |
Ovintiv Inc's profitability ratios show a mixed performance over the years analyzed.
1. Operating return on assets (Operating ROA) has shown significant improvement, increasing from 4.21% in 2020 to 25.59% in 2022, before declining to 8.20% in 2024. This indicates the company's ability to generate operating income from its assets, with a peak in 2022.
2. Return on assets (ROA) demonstrated a sharp recovery from -42.14% in 2020 to 24.16% in 2022, before tapering off to 5.84% in 2024. The negative ROA in 2020 suggests the company faced challenges in generating profits from its assets, but the subsequent years show a positive trend.
3. Return on total capital exhibited a similar trend, starting at a low of -139.67% in 2020, then steadily improving to 50.34% in 2022, and eventually settling at 17.07% in 2024. This ratio highlights the company's ability to generate returns from its total capital investment.
4. Return on equity (ROE) has fluctuated, with a significant improvement from -158.90% in 2020 to 47.30% in 2022, followed by a decrease to 10.89% in 2024. Despite the variability, the positive ROE in recent years indicates value creation for shareholders.
In summary, while Ovintiv Inc's profitability ratios have shown volatility, the overall trajectory suggests improved profitability and efficiency in utilizing assets and capital over the years analyzed.