Ovintiv Inc (OVV)

Solvency ratios

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
Debt-to-assets ratio 0.27 0.27 0.28 0.21 0.21 0.22 0.25 0.32 0.34 0.35 0.35 0.36 0.44 0.47
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
Debt-to-equity ratio 0.53 0.57 0.59 0.40 0.41 0.49 0.63 1.02 0.94 1.26 1.22 1.28 1.66 1.64
Financial leverage ratio 1.93 2.08 2.10 1.92 1.96 2.19 2.56 3.18 2.77 3.59 3.50 3.52 3.77 3.48

The solvency ratios of Ovintiv Inc indicate its ability to meet its long-term financial obligations and the extent to which it relies on debt financing.

The Debt-to-assets ratio has been relatively stable over the quarters, ranging from 0.25 to 0.32, with Q1 2023 showing the lowest ratio at 0.25, which suggests that Ovintiv Inc relies moderately on debt to finance its assets.

The Debt-to-capital ratio has followed a similar trend with a range of 0.32 to 0.51, indicating that debt accounts for around 32% to 51% of the company's capital structure over the quarters.

The Debt-to-equity ratio shows a more significant fluctuation from 0.48 to 1.03, with Q1 2022 having the highest ratio at 1.03, indicating that the company's reliance on debt compared to equity has varied significantly over the periods.

The Financial leverage ratio, which measures a company's total debt to its total assets, has also shown fluctuations ranging from 1.92 to 3.18, with Q1 2022 having the highest leverage at 3.18, indicating a higher level of financial risk and leverage during that period.

Overall, the solvency ratios of Ovintiv Inc suggest a moderate reliance on debt financing to support its operations, with some variability in the degree of leverage and debt usage over the quarters. It is important for investors and stakeholders to monitor these ratios to assess the company's long-term financial health and risk exposure.

Coverage ratios

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
Interest coverage 8.07 9.18 12.56 15.35 12.45 12.79 8.80 3.63 4.64 -1.21 -5.06 -16.01 -14.44 -12.71

The interest coverage ratio of Ovintiv Inc has shown fluctuations over the past eight quarters, ranging from a low of 3.20 in Q1 2022 to a high of 15.14 in Q1 2023. Generally, the company has maintained a healthy interest coverage ratio, with the lowest value still indicating that the company's earnings before interest and taxes (EBIT) are more than three times its interest expenses, providing a sufficient cushion to meet its interest obligations.

The interest coverage ratio peaked in Q1 2023 at 15.14, indicating the company's strong ability to cover its interest payments from its operating earnings. This high ratio suggests that Ovintiv Inc has a comfortable margin of safety in meeting its interest obligations and indicates financial stability. However, it's worth noting that the ratio decreased in the subsequent quarters but continued to stay at relatively healthy levels.

Overall, the trend in Ovintiv Inc's interest coverage ratio indicates that the company has been effectively managing its debt and is generating enough operating income to comfortably cover its interest expenses. This suggests a stable financial position and the ability to meet its debt obligations without significant strain.