Ovintiv Inc (OVV)
Debt-to-equity ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 10,331,000 | 10,370,000 | 7,689,000 | 5,074,000 | 3,837,000 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $10,331,000K
= 0.00
Based on the data provided, Ovintiv Inc has consistently maintained a debt-to-equity ratio of 0.00 from December 31, 2020, to December 31, 2024. A debt-to-equity ratio of 0.00 indicates that the company has no debt or a very minimal amount of debt in comparison to its equity. This suggests that Ovintiv has a strong capital structure, where its operations are primarily funded through equity rather than debt financing. This could be a positive sign for investors and creditors as it signifies lower financial risk and potential financial stability for the company. It also indicates that Ovintiv may have a lower interest burden and a higher capacity to weather economic downturns. However, it's important to note that while a low debt-to-equity ratio can be advantageous, it may also imply missed opportunities to leverage debt for potential growth or tax advantages.
Peer comparison
Dec 31, 2024