Ovintiv Inc (OVV)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	2,085,000	2,564,000	3,344,000	4,365,000	3,637,000	3,686,000	2,428,000	866,000	1,416,000	-582,000	-2,031,000	-6,209,000	-6,097,000	-5,489,000
Total assets	US$ in thousands	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
ROA		10.43%	12.88%	17.13%	28.86%	24.16%	25.64%	16.27%	5.81%	10.07%	-4.27%	-14.75%	-42.72%	-42.14%	-36.21%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $2,085,000K ÷ $19,987,000K
= 10.43%

To analyze Ovintiv Inc's return on assets (ROA) based on the provided data, we observe notable fluctuations in ROA over the past eight quarters. ROA is calculated by dividing net income by average total assets, reflecting the company's ability to generate profits from its asset base.

In the first quarter of 2022, Ovintiv Inc recorded an ROA of 5.81%, which increased to 16.27% in the second quarter before further rising to 25.64% in the third quarter of the same year. However, in the fourth quarter of 2022, the ROA decreased slightly to 24.16%.

The performance in 2023 saw a significant surge in the first quarter, with ROA reaching 28.86%, indicating a substantial increase in profitability relative to total assets. This was followed by a slight dip in the second quarter to 17.13%, and another decline in the third quarter to 12.88%. The last reported quarter, Q4 2023, saw a further decrease in ROA to 10.43%.

The variations in ROA over the quarters suggest fluctuations in Ovintiv Inc's operational efficiency in utilizing its assets to generate earnings. The company's ability to maintain a higher ROA indicates effective management of assets and profitability, while decreases may signal challenges in generating earnings from the asset base. Further analysis and comparison with industry peers would provide valuable insights into Ovintiv Inc's overall financial performance and efficiency.