Ovintiv Inc (OVV)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 5,453,000 | 3,177,000 | 4,786,000 | 6,367,000 | 6,974,000 |
| Total stockholders’ equity | US$ in thousands | 10,370,000 | 7,689,000 | 5,074,000 | 3,837,000 | 9,930,000 |
| Debt-to-equity ratio | 0.53 | 0.41 | 0.94 | 1.66 | 0.70 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $5,453,000K ÷ $10,370,000K
= 0.53
The debt-to-equity ratio of Ovintiv Inc has varied over the past five years, indicating changes in the company's capital structure and leverage.
In 2019, the ratio stood at 0.72, showing that for every dollar of equity, the company had $0.72 in debt. This suggests a moderate level of debt relative to equity.
By 2020, the ratio spiked to 1.85, reflecting a significant increase in leverage and a higher reliance on debt for funding operations or investments. This could signify potential financial risk due to the heightened debt levels.
However, in the subsequent years, the ratio decreased to 0.96 in 2021, 0.48 in 2022, and further down to 0.56 in 2023. These declines indicate a move towards a more balanced capital structure with less reliance on debt financing.
Overall, the fluctuation in Ovintiv Inc's debt-to-equity ratio suggests a strategic shift in the company's financing strategy, possibly aiming to optimize its capital structure and manage financial risk effectively.
Peer comparison
Dec 31, 2023