NOV Inc. (NOV)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,583,000 | 7,237,000 | 5,524,000 | 6,090,000 | 8,479,000 |
| Property, plant and equipment | US$ in thousands | 1,865,000 | 1,781,000 | 1,823,000 | 1,927,000 | 2,354,000 |
| Fixed asset turnover | 4.60 | 4.06 | 3.03 | 3.16 | 3.60 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $8,583,000K ÷ $1,865,000K
= 4.60
NOV Inc's fixed asset turnover has shown a positive trend over the past five years, indicating an improvement in the company's efficiency in generating revenue from its fixed assets. The ratio has steadily increased from 3.60 in 2019 to 4.60 in 2023, suggesting that NOV Inc has been utilizing its fixed assets more effectively to generate sales.
This indicates that NOV Inc has been able to generate $4.60 in revenue for every $1 of fixed assets in 2023, compared to generating $3.60 in revenue for every $1 of fixed assets in 2019.
The increasing trend in fixed asset turnover ratio is a positive sign as it indicates that NOV Inc has been able to optimize its fixed assets to generate higher revenue, which can lead to improved profitability and overall financial performance. It also reflects efficient asset management and operational effectiveness within the company.
Peer comparison
Dec 31, 2023