Ovintiv Inc (OVV)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 1,351,000 | 2,510,000 | 3,560,000 | 1,239,000 | -5,730,000 |
| Revenue | US$ in thousands | 9,152,000 | 10,661,000 | 12,464,000 | 8,658,000 | 6,087,000 |
| Pretax margin | 14.76% | 23.54% | 28.56% | 14.31% | -94.14% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $1,351,000K ÷ $9,152,000K
= 14.76%
Ovintiv Inc's pretax margin has shown a volatile trend over the past five years. Starting with a negative pretax margin of -94.14% in December 2020, the company managed to turn its performance around significantly, achieving a pretax margin of 14.31% in December 2021. This positive momentum continued into the following years, with pretax margins of 28.56% in December 2022 and 23.54% in December 2023. However, there was a slight decrease in pretax margin to 14.76% in December 2024.
The improvement in pretax margin from negative to positive figures indicates that Ovintiv Inc has managed to enhance its operational efficiency and control costs effectively. The fluctuation in pretax margin highlights the company's exposure to various external factors such as market conditions and industry fluctuations. To sustain profitability and enhance shareholder value, Ovintiv Inc should continue to focus on optimizing its cost structure and operational performance in the coming years.
Peer comparison
Dec 31, 2024