Ovintiv Inc (OVV)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 19,254,000 | 19,987,000 | 15,056,000 | 14,055,000 | 14,469,000 |
| Operating ROA | 8.20% | 14.33% | 25.59% | 10.81% | 4.21% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,579,000K ÷ $19,254,000K
= 8.20%
The operating return on assets (operating ROA) of Ovintiv Inc has shown a notable improvement over the period from December 31, 2020, to December 31, 2024.
Starting at 4.21% on December 31, 2020, the operating ROA increased to 10.81% by December 31, 2021, indicating a significant positive trend. This improvement continued as the operating ROA surged to 25.59% by December 31, 2022, reflecting a substantial enhancement in the company's operational efficiency and asset utilization.
However, there was a decline in the operating ROA to 14.33% by December 31, 2023, suggesting a possible slowdown in the company's operational performance or changes in asset management strategies. This was followed by a further decrease to 8.20% by December 31, 2024, indicating a continued challenge in maintaining the previously achieved high levels of operating return on assets.
In conclusion, while Ovintiv Inc experienced significant growth in its operating ROA over the analyzed period, the fluctuations in the metric towards the later years may indicate the need for the company to focus on sustaining and further enhancing its operational efficiency and asset productivity to ensure long-term profitability and sustainable growth.
Peer comparison
Dec 31, 2024