Ovintiv Inc (OVV)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 5,453,000 | 5,454,000 | 5,454,000 | 3,176,000 | 3,177,000 | 3,178,000 | 3,687,000 | 4,775,000 | 4,786,000 | 4,791,000 | 4,796,000 | 5,300,000 | 6,367,000 | 7,142,000 |
| 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 |
| Debt-to-capital ratio | 0.34 | 0.36 | 0.37 | 0.29 | 0.29 | 0.33 | 0.39 | 0.50 | 0.49 | 0.56 | 0.55 | 0.56 | 0.62 | 0.62 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $5,453,000K ÷ ($5,453,000K + $10,370,000K)
= 0.34
The debt-to-capital ratio of Ovintiv Inc has exhibited some fluctuations over the past eight quarters. The ratio has ranged from a low of 0.32 in Q1 2023 to a high of 0.51 in Q1 2022. Generally, the trend seems to have been decreasing from Q1 2022 to Q1 2023, with the ratio progressively declining. This indicates that the company has been reducing its reliance on debt relative to its total capital over this period. However, the ratio increased slightly in Q2 and Q3 2023 compared to the previous quarters, suggesting a potential shift in the company's capital structure during that time. Overall, monitoring the debt-to-capital ratio can provide insights into the financial leverage and risk management strategies of Ovintiv Inc.
Peer comparison
Dec 31, 2023