Ovintiv Inc (OVV)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,579,000 | 2,864,000 | 3,853,000 | 1,519,000 | 609,000 |
| Revenue | US$ in thousands | 9,152,000 | 10,661,000 | 12,464,000 | 8,658,000 | 6,087,000 |
| Operating profit margin | 17.25% | 26.86% | 30.91% | 17.54% | 10.00% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $1,579,000K ÷ $9,152,000K
= 17.25%
Based on the data provided, Ovintiv Inc's operating profit margin has shown noticeable fluctuations over the years. The operating profit margin increased from 10.00% on December 31, 2020, to 17.54% on December 31, 2021, reflecting a significant improvement in profitability. This upward trend continued in 2022, with the margin reaching 30.91%, indicating a substantial increase in operational efficiency.
However, in the following years, there was a slight decline in the operating profit margin. By December 31, 2023, the margin decreased to 26.86%, showcasing a reduction in profitability compared to the previous year. Furthermore, by December 31, 2024, the operating profit margin had declined further to 17.25%, indicating a notable decrease in profitability compared to the peak in 2022.
Overall, Ovintiv Inc's operating profit margin has displayed volatility over the years, with both positive and negative fluctuations. It is essential for the company to closely monitor and manage its operating expenses and revenue generation to ensure sustained profitability in the future.
Peer comparison
Dec 31, 2024