Ovintiv Inc (OVV)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 2,864,000 | 2,840,000 | 3,746,000 | 4,731,000 | 3,853,000 | 4,134,000 | 2,761,000 | 1,124,000 | 1,519,000 | -517,000 | -2,023,000 | -5,961,000 | -5,397,000 | -4,834,000 | |||
| Total assets | US$ in thousands | 19,987,000 | 19,900,000 | 19,519,000 | 15,123,000 | 15,056,000 | 14,374,000 | 14,923,000 | 14,900,000 | 14,055,000 | 13,636,000 | 13,767,000 | 14,534,000 | 14,469,000 | 15,157,000 | 16,795,000 | 21,505,000 | 21,487,000 |
| Operating ROA | 14.33% | 14.27% | 19.19% | 31.28% | 25.59% | 28.76% | 18.50% | 7.54% | 10.81% | -3.79% | -14.69% | -41.01% | -37.30% | -31.89% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $2,864,000K ÷ $19,987,000K
= 14.33%
Analyzing Ovintiv Inc's operating return on assets (operating ROA) over the past eight quarters reveals fluctuations in performance. In Q1 2022, the operating ROA was at a relatively low level of 7.01%, showing limited operating efficiency. Subsequently, the ratio experienced a significant increase in Q2 2022 to 17.98%, indicating improved operational performance. This positive trend continued into Q3 2022 and Q4 2022 with operating ROA reaching 28.23% and 25.14% respectively, reflecting strengthening profitability relative to asset utilization.
However, in the first two quarters of 2023, the operating ROA showed contrasting results. In Q1 2023, the ratio surged to 30.84%, signaling exceptional operational efficiency and profitability. This was followed by a decline in Q2 2023 to 18.84%, though the ratio remained relatively high compared to historical levels. In Q3 2023 and Q4 2023, there was a slight decrease in the operating ROA to 13.92% and 13.97% respectively, demonstrating a mild decrease in profitability and efficiency compared to the previous quarter.
Overall, Ovintiv Inc's operating ROA indicates varying levels of operational effectiveness and profitability over the analyzed period. The company experienced fluctuations in performance, with notable improvements in operational efficiency seen in 2022 followed by more stable but slightly lower results in 2023. Further investigation into the factors driving these changes would be beneficial to understand the underlying causes of the fluctuations in operating ROA.
Peer comparison
Dec 31, 2023