Ovintiv Inc (OVV)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	10,370,000	9,552,000	9,316,000	7,894,000	7,689,000	6,550,000	5,821,000	4,684,000	5,074,000	3,797,000	3,934,000	4,134,000	3,837,000	4,352,000	5,873,000	10,191,000	9,930,000
ROE		20.11%	26.84%	35.90%	55.30%	47.30%	56.27%	41.71%	18.49%	27.91%	-15.33%	-51.63%	-150.19%	-158.90%	-126.13%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $2,085,000K ÷ $10,370,000K
= 20.11%

The Return on Equity (ROE) for Ovintiv Inc has displayed varying levels over the past eight quarters. ROE measures the company's ability to generate profit from shareholders' equity. In Q1 2023, the ROE stood at an impressive 55.30%, indicating that Ovintiv efficiently utilized shareholders' equity to generate profit during that period. The ROE then declined in Q2 2023 to 35.90% but remained at a relatively high level.

Subsequently, there was a notable decrease in ROE in Q3 2023 to 26.84%, suggesting a potential slowdown in the company's profitability relative to its equity base. However, the ROE rebounded in Q4 2023 to 20.11%, although it remained below the levels seen in the previous quarters.

Comparing to previous years, the ROE was generally high in 2022, with particularly strong performance in Q3 2022 and Q4 2022, where the ROE exceeded 50%. Conversely, in Q1 2022, the ROE was lower at 18.49%, indicating relatively lower profitability compared to the following quarters.

Overall, Ovintiv's ROE has fluctuated over the quarters, with periods of strong profitability followed by some moderation. Investors and analysts may continue to monitor the company's ROE performance to assess its ability to generate profit from the equity invested in the business.