Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Devon Energy Corp., adjustments to financial statements

US$ in millions

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Adjustment to Total Assets
Total assets (as reported)	23,721)	21,025)	9,912)	13,717)	19,566)
Less: Goodwill	753)	753)	753)	753)	841)
Total assets (adjusted)	22,968)	20,272)	9,159)	12,964)	18,725)
Adjustment to Stockholders’ Equity Attributable To Devon
Stockholders’ equity attributable to Devon (as reported)	11,167)	9,262)	2,885)	5,802)	9,186)
Less: Goodwill	753)	753)	753)	753)	841)
Stockholders’ equity attributable to Devon (adjusted)	10,414)	8,509)	2,132)	5,049)	8,345)

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).

Devon Energy Corp., Financial Data: Reported vs. Adjusted

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Devon Energy Corp., adjusted financial ratios

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Total Asset Turnover
Reported total asset turnover	0.81	0.58	0.49	0.45	0.55
Adjusted total asset turnover	0.83	0.60	0.53	0.48	0.57
Financial Leverage
Reported financial leverage	2.12	2.27	3.44	2.36	2.13
Adjusted financial leverage	2.21	2.38	4.30	2.57	2.24
Return on Equity (ROE)
Reported ROE	53.86%	30.37%	-92.89%	-6.12%	33.36%
Adjusted ROE	57.76%	33.06%	-125.70%	-7.03%	36.72%
Return on Assets (ROA)
Reported ROA	25.36%	13.38%	-27.04%	-2.59%	15.66%
Adjusted ROA	26.19%	13.88%	-29.26%	-2.74%	16.36%

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).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Devon Energy Corp. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Devon Energy Corp. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Devon Energy Corp. adjusted ROE improved from 2020 to 2021 and from 2021 to 2022.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Devon Energy Corp. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

Devon Energy Corp., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Revenues	19,169)	12,206)	4,828)	6,220)	10,734)
Total assets	23,721)	21,025)	9,912)	13,717)	19,566)
Activity Ratio
Total asset turnover¹	0.81	0.58	0.49	0.45	0.55
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenues	19,169)	12,206)	4,828)	6,220)	10,734)
Adjusted total assets	22,968)	20,272)	9,159)	12,964)	18,725)
Activity Ratio
Adjusted total asset turnover²	0.83	0.60	0.53	0.48	0.57

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).

2022 Calculations

¹ Total asset turnover = Revenues ÷ Total assets
= 19,169 ÷ 23,721 = 0.81

² Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 19,169 ÷ 22,968 = 0.83

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Devon Energy Corp. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Total assets	23,721)	21,025)	9,912)	13,717)	19,566)
Stockholders’ equity attributable to Devon	11,167)	9,262)	2,885)	5,802)	9,186)
Solvency Ratio
Financial leverage¹	2.12	2.27	3.44	2.36	2.13
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	22,968)	20,272)	9,159)	12,964)	18,725)
Adjusted stockholders’ equity attributable to Devon	10,414)	8,509)	2,132)	5,049)	8,345)
Solvency Ratio
Adjusted financial leverage²	2.21	2.38	4.30	2.57	2.24

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).

2022 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity attributable to Devon
= 23,721 ÷ 11,167 = 2.12

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity attributable to Devon
= 22,968 ÷ 10,414 = 2.21

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Devon Energy Corp. adjusted financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to Devon	6,015)	2,813)	(2,680)	(355)	3,064)
Stockholders’ equity attributable to Devon	11,167)	9,262)	2,885)	5,802)	9,186)
Profitability Ratio
ROE¹	53.86%	30.37%	-92.89%	-6.12%	33.36%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to Devon	6,015)	2,813)	(2,680)	(355)	3,064)
Adjusted stockholders’ equity attributable to Devon	10,414)	8,509)	2,132)	5,049)	8,345)
Profitability Ratio
Adjusted ROE²	57.76%	33.06%	-125.70%	-7.03%	36.72%

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).

2022 Calculations

¹ ROE = 100 × Net earnings (loss) attributable to Devon ÷ Stockholders’ equity attributable to Devon
= 100 × 6,015 ÷ 11,167 = 53.86%

² Adjusted ROE = 100 × Net earnings (loss) attributable to Devon ÷ Adjusted stockholders’ equity attributable to Devon
= 100 × 6,015 ÷ 10,414 = 57.76%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Devon Energy Corp. adjusted ROE improved from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to Devon	6,015)	2,813)	(2,680)	(355)	3,064)
Total assets	23,721)	21,025)	9,912)	13,717)	19,566)
Profitability Ratio
ROA¹	25.36%	13.38%	-27.04%	-2.59%	15.66%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net earnings (loss) attributable to Devon	6,015)	2,813)	(2,680)	(355)	3,064)
Adjusted total assets	22,968)	20,272)	9,159)	12,964)	18,725)
Profitability Ratio
Adjusted ROA²	26.19%	13.88%	-29.26%	-2.74%	16.36%

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).

2022 Calculations

¹ ROA = 100 × Net earnings (loss) attributable to Devon ÷ Total assets
= 100 × 6,015 ÷ 23,721 = 25.36%

² Adjusted ROA = 100 × Net earnings (loss) attributable to Devon ÷ Adjusted total assets
= 100 × 6,015 ÷ 22,968 = 26.19%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Devon Energy Corp. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

Devon Energy Corp. (NYSE:DVN)

Analysis of Goodwill and Intangible Assets

Adjustments to Financial Statements: Removal of Goodwill

Devon Energy Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Devon Energy Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)