Return on Assets (ROA)
since 2005
Calculation
Devon Energy Corp., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net earnings (loss) attributable to Devon1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 25.36% | = | 100 | × | 6,015) | ÷ | 23,721) |
| Dec 31, 2021 | 13.38% | = | 100 | × | 2,813) | ÷ | 21,025) |
| Dec 31, 2020 | -27.04% | = | 100 | × | (2,680) | ÷ | 9,912) |
| Dec 31, 2019 | -2.59% | = | 100 | × | (355) | ÷ | 13,717) |
| Dec 31, 2018 | 15.66% | = | 100 | × | 3,064) | ÷ | 19,566) |
| Dec 31, 2017 | 2.97% | = | 100 | × | 898) | ÷ | 30,241) |
| Dec 31, 2016 | -12.74% | = | 100 | × | (3,302) | ÷ | 25,913) |
| Dec 31, 2015 | -48.94% | = | 100 | × | (14,454) | ÷ | 29,532) |
| Dec 31, 2014 | 3.17% | = | 100 | × | 1,607) | ÷ | 50,637) |
| Dec 31, 2013 | -0.05% | = | 100 | × | (20) | ÷ | 42,877) |
| Dec 31, 2012 | -0.48% | = | 100 | × | (206) | ÷ | 43,326) |
| Dec 31, 2011 | 11.44% | = | 100 | × | 4,704) | ÷ | 41,117) |
| Dec 31, 2010 | 13.82% | = | 100 | × | 4,550) | ÷ | 32,927) |
| Dec 31, 2009 | -8.35% | = | 100 | × | (2,479) | ÷ | 29,686) |
| Dec 31, 2008 | -6.73% | = | 100 | × | (2,148) | ÷ | 31,908) |
| Dec 31, 2007 | 8.70% | = | 100 | × | 3,606) | ÷ | 41,456) |
| Dec 31, 2006 | 8.12% | = | 100 | × | 2,846) | ÷ | 35,063) |
| Dec 31, 2005 | 9.68% | = | 100 | × | 2,930) | ÷ | 30,273) |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
The financial performance of Devon Energy Corp. from 2005 to 2022 is characterized by extreme volatility in net earnings and a significant structural shift in the asset base, both of which have profoundly impacted the return on assets (ROA).
- Net Earnings Volatility
- Earnings exhibit a cyclical pattern with severe fluctuations. Initial stability between 2005 and 2007 was followed by substantial losses in 2008 and 2009. A period of recovery occurred in 2010 and 2011, followed by another downturn. The most significant loss occurred in 2015, with net earnings dropping to negative 14.45 billion US dollars. Subsequent recovery efforts led to gains in 2017 and 2018, before another decline in 2019 and 2020. The period concludes with a strong upward trajectory, peaking at 6.015 billion US dollars in 2022.
- Asset Base Evolution
- Total assets experienced a period of expansion from 2005, peaking at 50.637 billion US dollars in 2014. This was followed by a consistent and sharp contraction over the next six years, reaching a low of 9.912 billion US dollars in 2020. This represents a reduction of approximately 80% from the 2014 peak. A recovery in the asset base began in 2021, rising to 23.721 billion US dollars by the end of 2022.
- Return on Assets (ROA) Trends
- The ROA reflects the combined impact of earnings volatility and asset fluctuations. The ratio fluctuated between positive and negative territory throughout the period. A critical anomaly is observed in 2015, where ROA plummeted to -48.94%, driven by the massive net loss relative to the asset base. Conversely, the period from 2021 to 2022 shows a rapid acceleration in efficiency, with ROA rising from 13.38% to a period high of 25.36%. This suggests that recent profitability is being generated more efficiently relative to the company's current asset size than in previous decades.
The relationship between declining assets and increasing ROA in the final two years of the analyzed period indicates a transition toward a leaner operational model. While the company previously maintained a much larger asset base with lower relative returns, the most recent data shows significantly higher capital efficiency.
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Comparison to Competitors
Devon Energy Corp., ROA, long-term trends, comparison to competitors
| Devon Energy Corp. | Chevron Corp. | ConocoPhillips | ExxonMobil Holdings Corp. | |
|---|---|---|---|---|
| Dec 31, 2022 | 25.36% | 13.76% | 19.91% | 15.10% |
| Dec 31, 2021 | 13.38% | 6.52% | 8.91% | 6.80% |
| Dec 31, 2020 | -27.04% | -2.31% | -4.31% | -6.74% |
| Dec 31, 2019 | -2.59% | 1.23% | 10.20% | 3.95% |
| Dec 31, 2018 | 15.66% | 5.84% | 8.94% | 6.02% |
| Dec 31, 2017 | 2.97% | 3.62% | -1.17% | 5.65% |
| Dec 31, 2016 | -12.74% | -0.19% | -4.03% | 2.37% |
| Dec 31, 2015 | -48.94% | 1.72% | -4.54% | 4.80% |
| Dec 31, 2014 | 3.17% | 7.23% | 5.89% | 9.30% |
| Dec 31, 2013 | -0.05% | 8.44% | 7.76% | 9.39% |
| Dec 31, 2012 | -0.48% | 11.24% | 7.19% | 13.45% |
| Dec 31, 2011 | 11.44% | 12.84% | 8.12% | 12.40% |
| Dec 31, 2010 | 13.82% | 10.30% | 7.27% | 10.07% |
| Dec 31, 2009 | -8.35% | 6.37% | 3.18% | 8.26% |
| Dec 31, 2008 | -6.73% | 14.85% | -11.90% | 19.83% |
| Dec 31, 2007 | 8.70% | 12.56% | 6.69% | 16.78% |
| Dec 31, 2006 | 8.12% | 12.92% | 9.44% | 18.04% |
| Dec 31, 2005 | 9.68% | 11.20% | 12.64% | 17.34% |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Oil, Gas & Consumable Fuels)
Devon Energy Corp., ROA, long-term trends, comparison to sector (oil, gas & consumable fuels)
| Devon Energy Corp. | Oil, Gas & Consumable Fuels | |
|---|---|---|
| Dec 31, 2022 | 25.36% | 15.25% |
| Dec 31, 2021 | 13.38% | 6.99% |
| Dec 31, 2020 | -27.04% | -4.83% |
| Dec 31, 2019 | -2.59% | 3.65% |
| Dec 31, 2018 | 15.66% | 6.26% |
| Dec 31, 2017 | 2.97% | 4.15% |
| Dec 31, 2016 | -12.74% | 0.55% |
| Dec 31, 2015 | -48.94% | 2.33% |
| Dec 31, 2014 | 3.17% | 8.01% |
| Dec 31, 2013 | -0.05% | 8.79% |
| Dec 31, 2012 | -0.48% | 11.62% |
| Dec 31, 2011 | 11.44% | 11.59% |
| Dec 31, 2010 | 13.82% | 9.45% |
| Dec 31, 2009 | -8.35% | 6.29% |
| Dec 31, 2008 | -6.73% | 9.80% |
| Dec 31, 2007 | 8.70% | 12.52% |
| Dec 31, 2006 | 8.12% | 13.98% |
| Dec 31, 2005 | 9.68% | 14.45% |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Energy)
Devon Energy Corp., ROA, long-term trends, comparison to industry (energy)
| Devon Energy Corp. | Energy | |
|---|---|---|
| Dec 31, 2022 | 25.36% | 14.84% |
| Dec 31, 2021 | 13.38% | 6.84% |
| Dec 31, 2020 | -27.04% | -6.08% |
| Dec 31, 2019 | -2.59% | 1.97% |
| Dec 31, 2018 | 15.66% | 5.95% |
| Dec 31, 2017 | 2.97% | 3.55% |
| Dec 31, 2016 | -12.74% | 0.27% |
| Dec 31, 2015 | -48.94% | 2.39% |
| Dec 31, 2014 | 3.17% | 8.02% |
| Dec 31, 2013 | -0.05% | 8.90% |
| Dec 31, 2012 | -0.48% | 11.40% |
| Dec 31, 2011 | 11.44% | 11.40% |
| Dec 31, 2010 | 13.82% | 9.36% |
| Dec 31, 2009 | -8.35% | 6.46% |
| Dec 31, 2008 | -6.73% | 10.21% |
| Dec 31, 2007 | 8.70% | 12.80% |
| Dec 31, 2006 | 8.12% | 14.07% |
| Dec 31, 2005 | 9.68% | 14.36% |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).