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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
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 | 16,795,000 | 21,505,000 | 21,487,000 |
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.
Peer comparison
Dec 31, 2023