NOV Inc. (NOV)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,870,000 | 8,583,000 | 7,237,000 | 5,524,000 | 6,090,000 |
| Property, plant and equipment | US$ in thousands | — | — | 2,298,000 | 2,360,000 | 1,927,000 |
| Fixed asset turnover | — | — | 3.15 | 2.34 | 3.16 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $8,870,000K ÷ $—K
= —
The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate revenue. In the case of NOV Inc., the trend in the fixed asset turnover ratio from December 31, 2020, to December 31, 2022, shows a variation. The ratio decreased from 3.16 in 2020 to 2.34 in 2021 but then increased to 3.15 in 2022.
The improvement in the fixed asset turnover ratio from 2021 to 2022 indicates that NOV Inc. effectively used its fixed assets to generate sales during the latest reported period. However, the data is unavailable for the years 2023 and 2024, making it challenging to assess the trend further.
It is crucial for NOV Inc. to monitor and manage its fixed asset turnover ratio consistently to ensure optimal utilization of its fixed assets, as a higher ratio generally indicates better efficiency in asset utilization. Further analysis and comparison with industry peers can provide additional insights into the company's operational efficiency and competitiveness in the market.
Peer comparison
Dec 31, 2024