Peer Evaluation Companies Suncor – Cenovus – Imperial
The summary of the financial ratios of the three companies in two years is shown in the
table above. It gives us the opportunity to not only compare the current performance of any given
company but also the year-to-year variations, which may indicate improvements or reduce the
performance in any of the key financial areas.
Ratio
Suncor
Suncor Cenovus Cenovus Imperial Imperial Fortis
2023
2024
2023
2024
2023
2024
Current Ratio
1.4389
1.3295
8.6819
1.4173
6.2394
6.1279
Quick Ratio
0.1802
0.3242
8.033
7.0691
5.761
5.8935
Cash Ratio
0.1802
0.3242
8.4064
7.3726
7.7191
7.3544
Debt/Equity
0.2676
0.21
0.2477
0.0123
0.6251
0.5697
Debt Ratio
0.1308
0.1041
0.1318
0.0034
0.3371
0.3114
0.5896
0.6113
0.9683
0.96
1.2371
1.2001
3.3952
3.7919
0.7253
0.6501
0.0525
0.1011
9.1031
10.4635
17.2007
20.764
15.898
8.9496
Margin
0.1589
0.1096
0.0737
0.0782
0.0927
0.102
ROA
0.0937
0.067
0.0714
0.0751
0.1147
0.1223
ROE
0.1917
0.1351
0.1341
0.1427
0.2126
0.2238
Asset
Turnover
Inventory
Turnover
Receivables
Turnover
Net Profit
Liquidity Analysis
There was a relatively low yet stable liquidity profile of Suncor in the two years. Its
current ratio dropped to 1.33 in 2024, down a notch lower than it was in 2023 of 1.44, with the
quick and cash ratio increasing to 0.32 compared to 0.18, which indicates a little growth in the
cash and receivables as compared to current liabilities. Despite the advances, the liquidity of
Suncor is tight in comparison to its peers which means that this company may be more
dependent on the inventory and operational cash flows to meet the short-term liabilities.
Cenovus, by contrast, enjoyed a very high liquidity during 2023 with a current ratio of
8.68 and a cash ratio of over 8. Such high liquidity was significantly dropped in 2024 (current
ratio 1.42, cash ratio 7.37), but it still demonstrates that the ability to satisfy short-term
commitments is very high. Imperial Oil has continued to be very liquid during the two years, as
both current ratios and cash ratios exceed 6 and 7 respectively, making it the most liquid
company of the peer group. Overall, the peer average demonstrates that Suncor is lagging,
though both Cenovus and Imperial have much better short-term financial flexibility.
Solvency and Leverage Analysis
In the period 2023-2024, Suncor decreased its leverage slightly, the debt-to-equity ratio
decreased to 0.21 and the debt ratio to 0.10. This is an indication of a movement toward a
healthier balance sheet where the company depends less on debt financing. A more aggressive
deleveraging strategy saw Cenovus essentially wipe out its debt by 2024, by which time its debtto-equity ratio stands at 0.01 and its debt ratio is close to zero. On the other hand, Imperial Oil is
still more debt based, and debt to equity stands at 0.57 and debt ratio is 0.31 in 2024, which
implies a bigger financial risk compared to the peer group. In short, Cenovus is the most
financially conservative with Suncor as the moderate in terms of leverage and Imperial Oil as the
most exposed in terms of debt.
Efficiency Analysis
Suncor showed slight increases in asset utilization (asset turnover 0.59 to 0.61) and
improved collections (receivables turnover 9.10 to 10.46) and an increase in inventory turnover
(3.40 to 3.79). Cenovus was also very efficient in assets (0.97 to 0.96) and receivables (17.20 to
20.76) management, but it has low inventory turnover (0.65), indicating slower inventory
movement. Imperial Oil totes the lead in the overall usage of assets (1.24 -1.20) but the turnover
on the receivables dropped significantly (15.90 -8.95), and the turnover on the inventory is very
low (0.05 -0.10). These tendencies emphasize a balanced development of Suncor, effective
collections with poor inventory management by Cenovus, and efficiency in asset utilization and
inability to handle the inventory issues in the operations of Imperial Oil.
Profitability Analysis
Suncor has realized a significant reduction in profitability between 2023 and 2024. The
net profit margin decreased by 15.9 to 10.9, ROA decreased by 9.4 to 6.7 and ROE went down
by 19.2 to 13.5 and a decline in EPS (6.34 to 4.72). Dividend payout also rose by 33 percent to
47 percent implying that the company held on to shareholder returns even when the earnings
were lower. Cenovus only showed a stable but moderate profitability, and the net margin
increased slightly by 0.4 to 7.8 and the ROE increased by 0.3 to 14.3. Imperial Oil has proven to
be the most profitable as the company has experienced an increase in net margin of 9.3 to 10.2,
ROA of 11.5 to 12.2, and ROE of 21.3 to 22.4. In general, the most profitable peer is Imperial
Oil, Suncor displays deteriorating profitability, and Cenovus is stable yet lower in terms of
profitability.
Figure
ROE Comparison (2023 vs
2024)
ROE
0,25
0,2
0.1917
0,15
0.1351
0,1
0.1341
0,05
0.1427
0
0.2126
Suncor 2023
Suncor 2024
0.2238
Company
The bar chart demonstrates that to the 2023 and 2024 period of return on equity of the
three companies. In this case, we can observe that Imperial Oil continuously records the best
ROE, which indicates a better level of profitability and shareholder returns. The ROE of Suncor
has decreased, and Cenovus has stable but only average growth. Relative performance becomes
more instantly apparent when the bars are used side by side.
Figure
There are clear strategic positions shown across the peer group in terms of liquidity,
solvency, efficiency, and profitability. Imperial Oil is superior in its profitability and the overall
asset efficiency whereas it has more debt. Cenovus is very conservative, and leverage is low, and
receivables management is good with high liquidity. Suncor has moderate leverage, falling
profitability, and effective inventory controls, which marks a moderate but not predominant
standing in the industry. The trends present the absolute understanding of the financial wellbeing and operational capabilities of every company and give it a strong base to conduct peer
benchmarking and strategic analysis.