Ovintiv Inc (OVV)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,864,000 | 3,853,000 | 1,519,000 | -5,397,000 | 598,000 |
| Revenue | US$ in thousands | 10,883,000 | 12,464,000 | 8,658,000 | 6,087,000 | 6,726,000 |
| Operating profit margin | 26.32% | 30.91% | 17.54% | -88.66% | 8.89% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $2,864,000K ÷ $10,883,000K
= 26.32%
Ovintiv Inc's operating profit margin has displayed significant fluctuations over the past five years. The margin stood at 25.83% in 2023, reflecting a decrease from 30.53% in 2022. Despite this reduction, the 2023 figure remains relatively high compared to the margins seen in 2021 (16.84%), 2020 (1.86%), and 2019 (7.88%).
The fluctuation in the operating profit margin indicates varying levels of efficiency in generating profits from operations. The significant increase in 2022 followed by a decrease in 2023 suggests potential shifts in cost management or revenue generation strategies. It is important for Ovintiv Inc stakeholders to closely monitor these changes to ensure sustained profitability and operational effectiveness.
Peer comparison
Dec 31, 2023