Devon Energy Corp. (NYSE:DVN)

Gross profit margin

The gross profit margin exhibited a generally positive trend from 2018 to 2023, starting at 38.62% in March 2019 and increasing to peak levels above 55% during late 2022 and early 2023. The margin experienced some fluctuations, notably a dip in mid-2021 down to 27.78%, but recovered strongly thereafter, indicating improved efficiency in production and cost management over the period.

Operating profit margin

The operating profit margin showed considerable volatility during the analyzed period. It rose to 19.81% by the end of 2018 but dramatically decreased into negative territory in 2020, reaching a low of -58.41%. This sharp decline coincides with broader negative impacts in the business environment. Subsequently, the margin rebounded from 2021 onward, rising steadily to a high of 42.23% in late 2022, before showing a slight decline to 32.77% by the third quarter of 2023. This recovery indicates effective operational adjustments and cost control measures following earlier challenges.

Net profit margin

The net profit margin mirrored the fluctuations seen in the operating margin but with more pronounced effects. It rose to 42.13% in late 2019 but then sharply fell into negative figures through 2020, bottoming at -62.68%. Recovery began at the start of 2021 with gradual improvement, reaching a peak of 32.53% by March 2023 before a small reduction to 24.63% in the third quarter of 2023. The pattern suggests the company faced considerable profitability challenges that were partly overcome in subsequent years.

Return on equity (ROE)

The ROE showed substantial variability, increasing significantly from 33.36% in early 2019 to a peak of 55.25% in September 2019. It then deteriorated profoundly during 2020, hitting extreme negative values beyond -100%, reflecting a period of severe financial distress or asset impairments. Afterwards, ROE progressively improved from 2021 through 2023, reaching 58.13% in late 2022 before declining moderately to 32.61% by the third quarter of 2023. The data indicate a strong recovery in shareholder value following a critical downturn.

Return on assets (ROA)

The ROA trend paralleled other profitability indicators. Starting at around 15.66% in 2019, it increased to over 23% by late 2019, then declined sharply during 2020 to negative territory as low as -31.18%. From 2021 forward, ROA gradually rebounded, peaking at 26.83% near the end of 2022, and then slightly decreasing to 15.66% in third quarter 2023. This movement reflects renewed efficiency in asset utilization after a period of significant operational challenges.

The gross profit values exhibit notable fluctuations over the analyzed quarters, with marked volatility reflecting changes in operational efficiency or market conditions. Starting from moderate positive figures in early 2018, gross profit peaked sharply in December 2018, followed by a steep decline in the first quarter of 2019. Throughout subsequent quarters, gross profit experienced periods of recovery and decline, with significant peaks observed in late 2021 and early 2022. In the most recent quarters, gross profit maintains relatively high levels compared to the earlier period, although a slight declining trend is visible towards the last quarter analyzed.

Revenue trends show substantial variability, characterized by a pronounced dip in the first half of 2020, likely influenced by external market disruptions. Prior to this, revenues maintained an overall upward trajectory, peaking toward the end of 2018. A recovery phase is noted post-mid 2020, with successive increases through 2021 and into early 2022, where revenues reached the highest points in the dataset. However, revenue figures reduce somewhat in the latest quarters, indicating possible market saturation or demand challenges.

The gross profit margin reveals a generally improving trend over the timeline. Margins in the early periods, though partially unavailable, suggest moderate profitability. From 2019 onward, the margin exhibits steady growth, with minor oscillations, reaching above 50% in several quarters during 2022 and 2023. This upward movement implies enhanced operational effectiveness, cost management, or favorable pricing strategies contributing to better profitability despite fluctuations in absolute revenue and gross profit figures.

Gross Profit

Displayed significant volatility with sharp increases and decreases, peaking notably in late 2018 and late 2021 into 2022, followed by a mild downward movement in the last reported periods.

Revenues

Characterized by an overall upward trend until early 2020, interrupted by a substantial decline in mid-2020, then followed by recovery and new highs through 2021 and early 2022, with a slight decline observed towards the end of the dataset.

Gross Profit Margin

Showed a consistent improvement pattern from 2019 onwards, surpassing 50% in several quarters of 2022 and 2023, indicating better profitability and margin management over time despite revenue and profit fluctuations.

The analysis of the quarterly financial data indicates several notable trends in operating income, revenues, and operating profit margin over the periods presented.

Operating Income (Loss)

The operating income exhibits considerable volatility throughout the observed quarters. Initially, the figures range from a modest profit of $142 million in early 2018 to significant losses such as -$419 million in mid-2018. A peak operating income of $1,554 million appears at the end of 2018, followed by alternating gains and losses in 2019 and early 2020, with drastic losses reaching as low as -$2,042 million in March 2020. Following this period, there is a clear recovery trend starting in 2021, culminating in higher positive values; the peak occurs in late 2021 with $1,748 million, maintaining strong profitability through 2022. However, a downward movement is observed in 2023, where operating income declines but remains positive.

Revenues

Revenues fluctuate substantially, showing a general upward trajectory from 2018 through the end of 2022 despite short-term decreases. Starting at roughly $2.2 billion in early 2018, revenues surge to a peak of $5.6 billion in mid-2022. This represents notable growth, especially after a sharp dip during 2019, where revenues fell to a minimum of about $1.1 billion in the first quarter. The period of lowest revenue aligns with the beginning of 2020, where revenues dropped significantly to $394 million in mid-2020, likely reflecting adverse market or operational conditions. Recovery is observable post-2020 with consistent revenue increases, though a decline occurs again in 2023 relative to the previous peak, ending at $3.8 billion.

Operating Profit Margin

The operating profit margin is only available from late 2018 onward but reveals a strong improving trend over time. From a low point of 2.27% at the end of 2018, the margin improves significantly, turning negative in early 2020 and bottoming out at -58.41% in late 2020, reflecting profound profitability challenges. However, subsequent quarters show a robust turnaround, with margins rising steadily to reach a high of 42.23% in late 2022, indicating efficient operational performance and enhanced profitability margins. Slight declines in margin percentages are observed in 2023 but the margin remains robust above 30%, demonstrating sustained profitability.

Overall, the data reveals a pattern of initial instability and significant losses during 2019 and the early stages of 2020, followed by a period of recovery and strong operational performance through 2021 and 2022. Revenues and operating profit margins follow congruent trends, with both metrics improving markedly after the mid-2020 trough. The decline in 2023 suggests some moderation in growth and profitability but maintains positive financial health relative to earlier periods.

The financial results demonstrate significant volatility over the analyzed periods, with notable fluctuations observed in net earnings, revenues, and net profit margins.

Net Earnings (Loss) Attributable to Devon

The net earnings exhibit sharp variations, including periods of substantial losses and gains. Initially, the company experienced losses in early 2018, followed by a remarkable surge to a peak profit of 2,537 million US dollars in September 2018. Subsequently, earnings fluctuated, with alternating gains and losses, and declining substantially in early 2020 coinciding with a global economic downturn. From 2021 onwards, net earnings generally increased, reaching highs near 1,900 million US dollars in mid to late 2022 before showing a moderate decline yet sustaining positive profitability through the first three quarters of 2023.

Revenues

Revenues exhibited an overall increasing trend with considerable quarter-to-quarter instability. Initial quarterly revenues were relatively stable around 2,000 million US dollars but surged in late 2018 to over 3,700 million. A pronounced decline was visible in the first half of 2020, dropping sharply to below 400 million US dollars, likely reflecting market disruptions. From mid-2020 onwards, revenues rebounded steadily, peaking around 5,600 million US dollars in mid-2022. The most recent quarters reveal a slight moderation in revenue levels, though figures remain elevated compared to earlier years.

Net Profit Margin

The profit margin percentages display considerable variability, aligned with the fluctuations in earnings and revenues. Profit margins peaked significantly in mid to late 2018, exceeding 40%, before plunging into deeply negative territory in 2020, with margins falling as low as -62.68%. Following this low, margins began to recover starting in 2021, transitioning back into positive territory and steadily improving to surpass 30% in late 2022. The latest periods show a modest diminishing trend but maintain a robust profit margin above 20%, indicating improved profitability compared to the earlier part of the examined timeframe.

Overall, the data reveals that while the financial performance has experienced significant fluctuations, particularly during the 2018 to 2020 period, the company demonstrated resilience with a recovery in both revenues and profitability commencing in 2021 and sustaining through 2023. The most recent quarters suggest stabilization albeit with some moderate decreases from peak performance levels reached in 2022.

The financial data reveals notable fluctuations in net earnings attributable to the company over the analyzed quarters. Initial periods show significant losses, particularly around mid-2018, followed by a sharp improvement reaching a peak in the third quarter of 2018. This positive trend is not sustained as losses recur during 2019 and intensify markedly in the first half of 2020. Subsequently, earnings start to recover in late 2020, transitioning into consistent profitability through 2021 and 2022, with some of the highest reported net earnings in this interval. The first three quarters of 2023 maintain profitability but show a mild decline compared to the peaks of 2022.

Stockholders’ equity demonstrates a decreasing trend from 2018 through 2020, with a notable decline from nearly $9 billion to below $3 billion by the end of 2020. This contraction aligns with periods of substantial net losses and suggests financial strain or possible equity reductions. Starting in 2021, equity recovers steadily, surpassing prior levels by 2022 and continuing an upward trajectory into 2023, indicating strengthened financial stability and capital base restoration.

The return on equity (ROE) ratio exhibits considerable volatility, with no values provided before the third quarter of 2018. When data is available, ROE spikes to very high positive percentages during profitable quarters of late 2018 and 2019. However, ROE sharply declines into negative territory during 2019 and throughout much of 2020, reflecting the impact of sustained net losses during that period. From 2021 onward, ROE improves steadily and significantly, reaching high positive values above 50% in parts of 2022 and remaining robust, albeit with a decreasing trend, into 2023. This pattern corresponds with the recovery in net earnings and equity, indicating improved profitability and efficient use of equity capital during recent periods.

In summary, the data indicates that the company experienced a challenging period marked by sharp earnings volatility and equity depletion through 2019 and 2020, followed by a pronounced recovery in financial performance and balance sheet strength from 2021 onward. Improved profitability and enhanced equity levels contribute to substantially higher ROE in recent periods, reflecting a restoration of financial health and more consistent operational success.

Net Earnings (Loss) Trend

High volatility with heavy losses during 2018–2020, recovery and sustained profitability from 2021 through 2023, with some softening in late 2023.

Stockholders’ Equity Trend

Declined significantly from 2018 to 2020, then progressively increased from 2021, reaching record highs by 2023.

Return on Equity (ROE) Trend

Exhibited extreme fluctuations with elevated positive peaks in profitable quarters, deep negative troughs during losses, and a marked improvement beginning in 2021, achieving strong positive returns through 2023.

The financial data exhibits notable fluctuations in net earnings attributable to the company over the analyzed periods. Initially, there is a significant negative net earnings position in early 2018 with a loss of $197 million, which further deepens to a loss of $425 million in the second quarter of 2018. This is followed by a sharp recovery and a peak net earnings figure of $2,537 million in the third quarter of 2018. Subsequent quarters in 2018 and early 2019 reflect volatility, with net earnings oscillating between positive and negative values, indicating instability in profitability during that timeframe.

From mid-2019 through 2020, the company experienced predominantly negative net earnings, with the lowest point observed in the first quarter of 2020 at a loss of $1,816 million. This period aligns with the broader economic impact of global market disruptions. A gradual improvement is visible starting late 2020 and continuing through 2021 and into 2022, marked by consistent positive net earnings and reaching a high of $1,932 million in the third quarter of 2022. The trend suggests a recovery phase with strengthening profitability, albeit with some quarter-to-quarter variability in the most recent periods of 2023.

Total assets show a decreasing trend from the end of 2017 through 2020, declining from $29,316 million to a low of $9,912 million by the end of 2020. This substantial reduction may reflect asset dispositions, impairments, or other balance sheet adjustments during this timeframe. Post-2020, total assets rebound noticeably, doubling in value by early 2021 and maintaining a generally increasing trajectory through 2023, suggesting either asset acquisitions, revaluations, or business growth activities contributing to a stronger asset base.

The return on assets (ROA) metric, though incomplete for early periods, indicates a strong positive performance during late 2018 and early 2019, with values peaking over 23%. However, 2020 records significantly negative ROA values, which align with the losses and reduced asset base noted for this year, demonstrating inefficiencies in asset utilization during that challenging period. Recovery is apparent from late 2020 onwards, with ROA improving steadily and reaching peak levels above 25% during 2022, before moderating somewhat in 2023. This upward trajectory of ROA aligns closely with improvements in net earnings and stabilization of the asset base, confirming enhanced operational efficiency and profitability in recent years.

Overall, the data reflects phases of financial stress and recovery. The sharp downturn around 2020 is followed by a pronounced and sustained recovery period characterized by growing net earnings, asset base expansion, and improved return on assets. This suggests the company has undergone significant restructuring or strategic shifts resulting in enhanced financial health and operational performance throughout the latter part of the analyzed period.

Net Earnings (Loss)

Volatile with sharp loss in early 2018, peak profits in late 2018, severe losses in 2020, followed by consistent recovery and positive results up to 2023.

Total Assets

Steady decline from 2017 to 2020, followed by a significant rebound and stabilization from 2021 onward.

Return on Assets (ROA)

High positive returns in late 2018, sharply negative in 2020, then progressive improvement to strong positive returns in 2022 and slight moderation afterward.