Ovintiv Inc (OVV)
Pretax margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 2,510,000 | 2,553,000 | 3,434,000 | 4,419,000 | 3,560,000 | 3,832,000 | 2,487,000 | 860,000 | 1,239,000 | -785,000 | -2,274,000 | -6,158,000 | -5,730,000 | -5,156,000 |
| Revenue (ttm) | US$ in thousands | 10,883,000 | 10,929,000 | 11,829,000 | 13,048,000 | 12,464,000 | 12,591,000 | 10,831,000 | 8,787,000 | 8,658,000 | 6,847,000 | 6,248,000 | 5,282,000 | 6,087,000 | 6,124,000 |
| Pretax margin | 23.06% | 23.36% | 29.03% | 33.87% | 28.56% | 30.43% | 22.96% | 9.79% | 14.31% | -11.46% | -36.40% | -116.58% | -94.14% | -84.19% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $2,510,000K ÷ $10,883,000K
= 23.06%
The pretax margin of Ovintiv Inc has shown some variability over the past eight quarters. In Q1 2023, the pretax margin was the highest at 34.04%, indicating that the company was able to generate more profit before taxes relative to its total revenue in that quarter. This was followed by Q2 2023 with a pretax margin of 29.20%.
In contrast, the lowest pretax margin was recorded in Q1 2022 at 9.87%, suggesting lower profitability before taxes during that period. Q2 2022 and Q4 2022 also had relatively lower pretax margins at 23.12% and 28.72%, respectively.
Overall, Ovintiv Inc's pretax margin has fluctuated over the quarters, with some quarters demonstrating stronger profitability before taxes compared to others. It would be important to further investigate the factors influencing these fluctuations to assess the company's financial performance and sustainability.
Peer comparison
Dec 31, 2023