Ovintiv Inc (OVV)
Return on assets (ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 1,125,000 | 2,041,000 | 1,940,000 | 1,936,000 | 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 | -3,819,000 | 900,000 |
| Total assets | US$ in thousands | 19,254,000 | 70,914,000 | 19,809,000 | 19,834,000 | 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 |
| ROA | 5.84% | 2.88% | 9.79% | 9.76% | 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% | -22.74% | 4.19% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $1,125,000K ÷ $19,254,000K
= 5.84%
Ovintiv Inc's Return on Assets (ROA) is a key financial ratio that indicates how effectively the company is utilizing its assets to generate profits. Looking at the historical trend of ROA from March 31, 2020, to December 31, 2024, we can observe significant fluctuations in the company's asset efficiency.
Initially, in March 2020, the ROA stood at 4.19%, indicating a decent return on assets. However, this metric sharply declined in subsequent quarters, reaching negative values by June 2020 (-22.74%), and continuing to deteriorate throughout the rest of 2020 and into early 2021.
The negative ROA figures during this period suggest that Ovintiv was not generating sufficient profits relative to its asset base, signaling inefficiency in asset utilization and potentially unsustainable operations.
From December 2021, a notable turnaround began, with ROA steadily increasing through 2022 and 2023, reaching a peak of 28.86% in March 2023. This positive trend indicates improved asset utilization and profitability for the company during this period.
However, from June 30, 2023, to December 31, 2024, the ROA figures stabilized around single-digit percentages, suggesting a potential plateau in the company's asset efficiency and profitability.
In conclusion, Ovintiv Inc's ROA experienced significant fluctuations over the analyzed period, with periods of both weak asset performance and notable improvement. Continuous monitoring of ROA will be crucial for investors and stakeholders to gauge the company's ability to generate profits from its assets effectively.
Peer comparison
Dec 31, 2024