Ovintiv Inc (OVV)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,085,000 | 3,637,000 | 1,416,000 | -6,097,000 | 234,000 |
| Total assets | US$ in thousands | 19,987,000 | 15,056,000 | 14,055,000 | 14,469,000 | 21,487,000 |
| ROA | 10.43% | 24.16% | 10.07% | -42.14% | 1.09% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $2,085,000K ÷ $19,987,000K
= 10.43%
Ovintiv Inc's return on assets (ROA) has fluctuated significantly over the past five years. In 2023, the ROA stands at 10.43%, showing a decrease from the previous year's robust ROA of 24.16%. The company experienced a notable drop in ROA in 2020, where it was negative at -42.14%, indicating a period of financial difficulty or inefficiency in asset utilization. The ROA rebounded in 2021 to 10.07%, showing improved asset performance.
Comparing the latest ROA to historical figures, Ovintiv Inc's performance seems reasonably healthy in the current year, although lower than the exceptional performance seen in 2022. It is essential for the company to continue monitoring and managing its assets efficiently to sustain or improve its ROA in the future.
Peer comparison
Dec 31, 2023