Ovintiv Inc (OVV)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.86 | 6.66 | 1.92 | 1.93 | 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 | 2.86 | 2.11 |
Ovintiv Inc's solvency ratios indicate a strong financial position with consistently low debt levels in relation to its assets, capital, and equity. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all been recorded at 0.00 across the reported periods, signifying that the company has no significant debt obligations in comparison to its total assets, capital, or equity.
The financial leverage ratio, which provides insight into the extent of a company's debt financing in relation to its equity, shows a decreasing trend from a high of 3.77 in December 2020 to a low of 1.86 in December 2024, with fluctuations along the way. The decreasing trend indicates that the company has been actively reducing its reliance on debt to finance operations and investments, thereby enhancing its financial stability and reducing financial risk.
Overall, based on the solvency ratios, Ovintiv Inc appears to have a solid financial foundation, with minimal debt levels and a conservative approach to leverage, which bodes well for its financial health and long-term sustainability.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 4.28 | 7.13 | 6.80 | 7.11 | 8.10 | 9.16 | 12.59 | 15.38 | 12.48 | 12.85 | 8.81 | 3.63 | 4.64 | -1.20 | -5.03 | -15.96 | -14.39 | -12.67 | -7.96 | 4.07 |
The interest coverage ratio of Ovintiv Inc has shown significant fluctuations over the past few years. As of December 31, 2024, the interest coverage ratio stood at 4.28, indicating that the company generated 4.28 times the earnings necessary to cover its interest expenses. This implies a moderate ability to meet interest obligations through its operating income.
Looking at the trend, the interest coverage ratio was negative in the periods from June 2020 to March 2022, indicating that the company's earnings were insufficient to cover its interest payments during those times. However, from June 2022 onwards, the interest coverage ratio started to improve, reaching a peak of 15.38 as of March 31, 2023, reflecting a strong ability to cover interest costs.
It's important to note that a higher interest coverage ratio is generally viewed positively by investors and creditors as it signifies a lower risk of default due to the company's ability to meet its debt obligations comfortably. Ovintiv Inc's improving interest coverage ratio over the recent periods is a positive sign of its financial health and ability to manage its debt burden effectively.