Ovintiv Inc (OVV)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	1,125,000	2,085,000	3,637,000	1,416,000	-6,097,000
Revenue	US$ in thousands	9,152,000	10,661,000	12,464,000	8,658,000	6,087,000
Net profit margin		12.29%	19.56%	29.18%	16.35%	-100.16%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $1,125,000K ÷ $9,152,000K
= 12.29%

Net profit margin is a crucial financial ratio that indicates the percentage of revenue that translates into net income after all expenses are deducted.

Analyzing Ovintiv Inc's net profit margin data from 2020 to 2024 reveals some interesting trends. In December 2020, the company reported a net profit margin of -100.16%, indicating that its expenses surpassed its revenue, resulting in a net loss. However, by December 2021, Ovintiv Inc managed to turn its performance around significantly, achieving a net profit margin of 16.35%.

The positive momentum continued into the following years, with the net profit margin steadily increasing to 29.18% by December 2022. This substantial improvement suggests that the company effectively managed its expenses and optimized its revenue streams.

In December 2023, Ovintiv Inc's net profit margin slightly declined to 19.56%, indicating a potential shift in its financial performance or cost structure. By December 2024, the net profit margin further decreased to 12.29%. While this reduction may raise some concerns, it is essential to conduct a detailed analysis to identify any underlying factors contributing to this decline.

Overall, Ovintiv Inc's net profit margin has shown variability over the years, with a notable improvement from a negative margin in 2020 to positive margins in subsequent years. Further analysis of the company's operational efficiency, cost management strategies, and revenue generation capabilities can provide valuable insights into its financial health and sustainability.