NOV Inc. (NOV)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 8,583,000 | 8,313,000 | 8,017,000 | 7,651,000 | 7,237,000 | 6,681,000 | 6,133,000 | 5,823,000 | 5,524,000 | 5,334,000 | 5,377,000 | 5,456,000 | 6,090,000 | 7,044,000 | 7,786,000 | 8,422,000 | 8,479,000 | 8,596,000 | 8,624,000 | 8,598,000 |
| Property, plant and equipment | US$ in thousands | 1,865,000 | 1,843,000 | 1,839,000 | 1,814,000 | 1,781,000 | 1,757,000 | 1,761,000 | 1,806,000 | 1,823,000 | 1,825,000 | 1,871,000 | 1,894,000 | 1,927,000 | 1,994,000 | 2,010,000 | 2,003,000 | 2,354,000 | 2,361,000 | 2,356,000 | 2,605,000 |
| Fixed asset turnover | 4.60 | 4.51 | 4.36 | 4.22 | 4.06 | 3.80 | 3.48 | 3.22 | 3.03 | 2.92 | 2.87 | 2.88 | 3.16 | 3.53 | 3.87 | 4.20 | 3.60 | 3.64 | 3.66 | 3.30 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $8,583,000K ÷ $1,865,000K
= 4.60
The fixed asset turnover ratio measures how efficiently a company is generating revenue from its fixed assets. A higher ratio indicates that the company is utilizing its fixed assets more effectively to generate sales.
Looking at the data provided for NOV Inc over the past several quarters, we can observe a consistent improvement in the fixed asset turnover ratio. The ratio has been steadily increasing from 3.22 in Q1 2022 to 4.60 in Q4 2023. This suggests that NOV Inc has been able to generate more revenue relative to its investment in fixed assets over time.
The trend of increasing fixed asset turnover indicates that NOV Inc is efficiently utilizing its fixed assets to drive sales growth. This bodes well for the company's profitability and indicates effective asset management strategies. Investors and stakeholders may view this trend positively as it reflects improved operational efficiency and financial performance.
Peer comparison
Dec 31, 2023