Ovintiv Inc (OVV)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,670,000 | 2,511,000 | 2,451,000 | 2,501,000 | 2,519,000 | 2,840,000 | 3,746,000 | 4,731,000 | 3,879,000 | 4,160,000 | 2,793,000 | 1,156,000 | 1,525,000 | -511,000 | -2,023,000 | -5,961,000 | -5,397,000 | -4,834,000 | -3,013,000 | 1,584,000 |
| Total assets | US$ in thousands | 19,254,000 | 70,914,000 | 19,809,000 | 19,834,000 | 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 |
| Operating ROA | 8.67% | 3.54% | 12.37% | 12.61% | 12.60% | 14.27% | 19.19% | 31.28% | 25.76% | 28.94% | 18.72% | 7.76% | 10.85% | -3.75% | -14.69% | -41.01% | -37.30% | -31.89% | -17.94% | 7.37% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,670,000K ÷ $19,254,000K
= 8.67%
The operating return on assets (operating ROA) of Ovintiv Inc has shown fluctuating trends over the reviewed quarters. Starting at a positive 7.37% on March 31, 2020, the metric turned negative in the subsequent quarters, reaching its lowest point of -41.01% on March 31, 2021. However, there was a gradual recovery seen thereafter, with the operating ROA improving to 18.72% by June 30, 2022. This upward trend continued, reaching its peak of 31.28% on March 31, 2023.
Despite a minor dip in the following quarter, the operating ROA remained relatively stable around the 12-14% range from December 31, 2023, to March 31, 2024. Notably, there was a slight increase reported on June 30, 2024, at 12.37%, followed by a dip to 3.54% on September 30, 2024, before rebounding to 8.67% on December 31, 2024.
Overall, the analysis indicates improved operational efficiency and profitability as the operating ROA showed a positive trend in recent quarters after recovering from a period of negative returns. Monitoring this key metric will be crucial in assessing Ovintiv Inc's ability to generate earnings from its operational assets effectively.
Peer comparison
Dec 31, 2024