Ovintiv Inc (OVV)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,763,000 | 2,930,000 | 2,762,000 | 2,708,000 | 2,866,000 | 2,859,000 | 3,739,000 | 4,738,000 | 3,882,000 | 4,176,000 | 2,809,000 | 1,187,000 | 1,579,000 | -427,000 | -1,888,000 | -5,776,000 | -5,339,000 | -4,763,000 | -3,008,000 | 1,592,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 10,331,000 | 10,655,000 | 10,328,000 | 10,262,000 | 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 |
| Return on total capital | 17.07% | 27.50% | 26.74% | 26.39% | 27.64% | 29.93% | 40.14% | 60.02% | 50.49% | 63.76% | 48.26% | 25.34% | 31.12% | -11.25% | -47.99% | -139.72% | -139.15% | -109.44% | -51.22% | 15.62% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,763,000K ÷ ($—K + $10,331,000K)
= 17.07%
The return on total capital for Ovintiv Inc has experienced significant fluctuations over the past few years. Starting from March 31, 2020, where it stood at 15.62%, the ratio declined sharply in the subsequent quarters, reaching a low of -139.72% by March 31, 2021. This negative trend continued until December 31, 2021, when there was a notable turnaround with a positive return of 31.12%.
The positive momentum carried on into the following quarters with return on total capital showing steady improvement, reaching 63.76% by September 30, 2022. However, there was a slight dip in the ratio in the subsequent quarter before rebounding to 50.49% by December 31, 2022.
From March 31, 2023, to June 30, 2024, the return on total capital remained relatively stable, fluctuating within a range of 26.39% to 29.93%. By the end of December 31, 2024, the ratio stood at 17.07%.
Overall, the return on total capital for Ovintiv Inc showcases a mix of both positive and negative trends, reflecting the company's performance in recent years and its ability to effectively utilize its capital to generate profits.
Peer comparison
Dec 31, 2024