Ovintiv Inc (OVV)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,125,000 | 2,085,000 | 3,637,000 | 1,416,000 | -6,097,000 |
| Total stockholders’ equity | US$ in thousands | 10,331,000 | 10,370,000 | 7,689,000 | 5,074,000 | 3,837,000 |
| ROE | 10.89% | 20.11% | 47.30% | 27.91% | -158.90% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,125,000K ÷ $10,331,000K
= 10.89%
Based on the provided data, Ovintiv Inc's return on equity (ROE) has shown a significant improvement over the years. In December 31, 2020, the ROE was -158.90%, indicating a negative return on shareholders' equity. However, by December 31, 2021, the ROE improved to 27.91%, reflecting a turnaround in the company's ability to generate profit from its equity.
The positive trend continued in the following years, with the ROE reaching 47.30% by December 31, 2022, indicating a more efficient utilization of shareholder equity to generate profits. In December 31, 2023, the ROE slightly decreased to 20.11%, but it still remained at a respectable level, showcasing the company's ability to maintain profitability.
By December 31, 2024, the ROE further decreased to 10.89%, but it is important to note that a double-digit ROE is generally considered healthy for most companies. Overall, the trend in Ovintiv Inc's ROE shows a progressive improvement in the company's ability to generate profits relative to the shareholders' equity, indicating good financial performance and effective management of assets.
Peer comparison
Dec 31, 2024