Ovintiv Inc (OVV)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 10,370,000 | 7,689,000 | 5,074,000 | 3,837,000 | 9,930,000 |
| ROE | 20.11% | 47.30% | 27.91% | -158.90% | 2.36% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $2,085,000K ÷ $10,370,000K
= 20.11%
The return on equity (ROE) of Ovintiv Inc has been fluctuating over the past five years. In 2023, the ROE stood at 20.11%, showing a decrease compared to the previous year's 47.30%. Despite this decline, the company's ROE remains positive, indicating that it generated a return for shareholders.
In 2022, Ovintiv Inc achieved a high ROE of 47.30%, reflecting strong profitability and efficiency in generating returns on shareholders' equity. This marked improvement followed a ROE of 27.91% in 2021, indicating sustained performance.
However, in 2020, the company experienced a significant downturn with a negative ROE of -158.90%, implying that the company incurred a loss that year. This negative ROE could be attributed to various factors such as declining profitability, excessive leverage, or asset writedowns.
In 2019, Ovintiv Inc recorded a modest ROE of 2.36%, highlighting a relatively lower return compared to the subsequent years.
Overall, the fluctuation in Ovintiv Inc's ROE over the years signifies variability in the company's profitability and efficiency in utilizing shareholder equity to generate returns. It is important for investors and stakeholders to assess the company's financial performance comprehensively, taking into account the factors influencing these fluctuations in ROE.
Peer comparison
Dec 31, 2023