Ovintiv Inc (OVV)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 19,254,000 | 19,987,000 | 15,056,000 | 14,055,000 | 14,469,000 |
| Total stockholders’ equity | US$ in thousands | 10,331,000 | 10,370,000 | 7,689,000 | 5,074,000 | 3,837,000 |
| Financial leverage ratio | 1.86 | 1.93 | 1.96 | 2.77 | 3.77 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $19,254,000K ÷ $10,331,000K
= 1.86
The financial leverage ratio of Ovintiv Inc has shown a declining trend over the years, indicating an improvement in the company's leverage position. As of December 31, 2020, the ratio was 3.77, suggesting that the company had high financial leverage at that time. However, by December 31, 2024, the ratio had decreased to 1.86, reflecting a significant reduction in leverage.
This decreasing trend in the financial leverage ratio signifies that Ovintiv has been reducing its reliance on debt to finance its operations and investments. A lower financial leverage ratio indicates a healthier balance sheet structure and lower financial risk for the company. This trend could be a positive sign for investors and stakeholders as it suggests improved financial stability and potentially better profitability in the future. Overall, the decreasing financial leverage ratio of Ovintiv Inc reflects a prudent and effective management of financial leverage over the years.
Peer comparison
Dec 31, 2024