Devon is now in its fifth decade and is competing against companies like Chesapeake Energy Corporation and Enhance Corporation. Devon is a results-oriented oil and gas company that builds value for shareholders through Its employees by creating a culture of health, safety and environmental stewardship In an atmosphere of optimism, teamwork, creativity and resourcefulness and by dealing with everyone in an open and ethical manner. ” This is the mission statement that Devon Corporation operates by.
They have values that consist of: hiring the best people because that is their most important asset and will maximize the value of their company, always doing the right thing because Integrity is their core value that is implemented within and beyond the company, delivering results to continuously Increase shareholder value, being a team player because collaboration will create a better organization, ND lastly, being a good neighbor by respecting the environment of all surrounding communities that are in areas of Devon operation.
Devon Corporation most recent close price sits at 67. 20. This company has seen a vast amount of fluctuations Just this year with a high close price in June at 79. 50 and a low close price in October at 58. 17. This company experienced an all-time high In March of 2011 when its close price hit an astounding 93. 01 but then dropped by nearly 20 three months later when It closed at 76. 95 and then 55. 44 In September of that same year. They currently hold a return on equity of 9. % and a return on assets of 5. 24%. The industry that this company is in, oil and gas industry, has seen enormous advances in technology and this has helped toward assisting companies in producing more oil and gas. These technology advancements have allowed them to more accurately find and produce resources In order to maximize profit for the companies. Although the technology efficiency Is on the rise, trying to malting a fresh and talented workforce within the industry is an area that is struggling.
Another factor hurting this industry is the decrease in activity and transactions, which took a huge plummet in 2013 compared to 2012. Despite these setbacks, the oil and gas business still maintains to be dynamic due to how critical the resources are to the daily lives of everyone in the world. In 2013, Devon Energy Corporation, experienced a return on assets of negative 42%, when It had a net Income (net loss) of negative $20,000 and total assets equaling how efficiently it generated profit.
Like previously stated, the company currently has both, return on equity and return on assets, ratios in positive percentage standing. After reviewing the companies fluctuating close prices, implications in the industry, and historical financial standings, I was able to analyze that: the industry does have an effect on the prosperity of the company, a low or negative return on equity results in a decrease in the companies close price, and the amount of total assets only benefits the company when allocated correctly.