Ovintiv Inc (OVV)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 19,987,000 | 15,056,000 | 14,055,000 | 14,469,000 | 21,487,000 |
| Operating ROA | 14.33% | 25.59% | 10.81% | -37.30% | 2.78% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $2,864,000K ÷ $19,987,000K
= 14.33%
The operating return on assets (ROA) for Ovintiv Inc has shown fluctuations over the past five years. In 2023, the operating ROA was 13.97%, indicating that the company generated $0.1397 in operating income for every $1 of assets. This was a decrease from 2022, where the operating ROA was 25.14%, reflecting a higher profitability level in the previous year.
Looking back further, in 2021, the operating ROA was 10.29%, demonstrating a moderate level of profitability. In 2020, the operating ROA was a low 0.77%, suggesting a significant decrease in profitability compared to the previous year. However, there was a notable improvement in 2019, with the operating ROA standing at 2.44%.
Overall, the trend in Ovintiv Inc's operating ROA shows variability in profitability performance over the years, with 2022 reflecting the highest level of profitability and 2020 the lowest. It is essential for the company to analyze the factors contributing to these fluctuations and take necessary measures to maintain or improve its operating ROA in the future.
Peer comparison
Dec 31, 2023