Ovintiv Inc (OVV)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 2,510,000 | 3,560,000 | 1,239,000 | -5,730,000 | 315,000 |
| Revenue | US$ in thousands | 10,883,000 | 12,464,000 | 8,658,000 | 6,087,000 | 6,726,000 |
| Pretax margin | 23.06% | 28.56% | 14.31% | -94.14% | 4.68% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $2,510,000K ÷ $10,883,000K
= 23.06%
The pretax margin of Ovintiv Inc has exhibited significant fluctuations over the past five years, indicating varying levels of profitability before taxes. The company's pretax margin in 2023 was 23.21%, reflecting a decrease from the previous year's 28.72%. This decline suggests a potential reduction in the company's profitability efficiency in generating earnings before tax relative to its revenue.
In 2022, Ovintiv Inc had a pretax margin of 28.72%, representing a substantial improvement from the 14.43% reported in 2021. This significant increase in profitability before tax indicates enhanced operational performance and cost management strategies during that period.
However, the company experienced a sharp decline in its pretax margin in 2020, recording a negative figure of -95.25%. This anomaly may have been influenced by exceptional or one-time charges that impacted the company's profitability negatively. It is essential to investigate the factors contributing to such a significant deviation to assess its implications accurately.
In 2019, Ovintiv Inc achieved a pretax margin of 4.74%, indicating a moderate level of profitability before taxes relative to its revenue during that year.
Overall, the fluctuating trend in Ovintiv Inc's pretax margin signifies varying levels of profitability performance over the past five years, highlighting the importance of ongoing monitoring and analysis of the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2023